Switching jobs? Here is how you can convert your group health policy into an individual or family coverage plan

Want to switch jobs but keep your current employer provided insurance plan? As per the rules, you can convert your employer group health policy into an individual or family coverage plan, subject to fulfilling certain conditions. 

Usually, group health insurance covers employees and their family (spouse, children, dependents), but ends when you leave the particular employment. Here’s a look at the eligibility, steps to take and rules that guide the process of migrating from group health insurance to an individual/family floater plan.

Migrating from group health insurance: Top things to know

• According to a Policy Bazaar report, you can choose to migrate existing group health insurance to family floater or individual plan, as long as you keep the same insurance provider (company / insurer). 
• This also allows you to continue and retain benefits such as waiting periods for pre-existing diseases — subject to no gap in coverage during the transition, it added. 
• When shifting from a group mediclaim to individual or family insurance, the premium may be higher compared to regular policies, depending on your age and the coverage provided. 
• Some policies also have specific limits on room charges or types of room covered or other restrictions. This can be adjusted in the individual / family plan by contacting your insurer to understand the process and any additional costs, the report noted. 

Steps to convert group health policy to individual plan

• You must notify your current insurer that you plan to switch from the group mediclaim to an individual or family plan at least 30-45 days before your policy expires. 
• Once you have decided on the individual / family plan that suits your needs, request the insurer for the application form. 
• Ensure no mistakes are made while filling out the form. You will need to provide details and documents for — claim history, group plan details, etc. Notably, some insurers might also ask for a health check-up at this stage, the Policy Bazaar report added. 
• You will be required to submit the required documents at least 35-40 days in advance — before your group policy expires. 
• You must also be prepared to pay the premium that was previously covered by your employer after the form is submitted and undergoing the approval process. This can be done online, speak to the insurer about the specifics. 
• An insurer has the right to decide whether porting from group to individual or family policy is allowed and can decide on the terms and conditions along with the amount of premium, the report noted. 

Why should you choose individual health insurance?

• The report recommended having a personal health insurance policy along with or instead of your company’s group health insurance in order to cover specific health conditions as per your needs i.e. high blood pressure. 
• Having an individual health policy also takes away concern over being without cover in case of sudden loss of job. 
• Paying premium for individual and family health insurance provides taxation benefit under Section 80D of the Income-Tax Act.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual experts or companies, and not of Mint. We advise you to check with certified experts before making any investment decisions.