How to convert company health insurance into individual or family cover: A complete guide

Many people are surprised to learn that they may be able to take their company health insurance with them when they leave their job, Read to know how you can too!

Leaving your job can be an exciting new chapter in your life, but it can also bring up a lot of practical considerations, such as what to do about your health insurance. Many people are surprised to learn that they may be able to take their company health insurance with them when they leave their job.

As per the IRDAI guidelines, an individual who is covered under a group health insurance policy is eligible for portability when they leave their job. Subject to certain restrictions, the policyholder may either move the policy to an individual health insurance coverage or to another group policy offered by the new employer. The policyholder must have been continuously insured under the group policy for at least a year in order to qualify for portability. Within 45 days of the group policy expiring, they can transfer the coverage to an individual health insurance policy. A minimum of 45 days before the policy’s expiration date is required for the application to be timely.

It’s important to note that portability is not automatic and is subject to the acceptance of the new insurer. The new insurer may provide the policyholder with a waiting period for certain pre-existing diseases or illnesses that are not covered under the previous policy. The waiting period cannot exceed the waiting period already served under the previous policy.

The premium for the individual health insurance policy should not exceed the premium charged for the group policy. If the new insurer charges a higher premium, the policyholder can opt for a sum insured lower than the sum insured under the group policy.

As per the guidelines laid down by the IRDAI, individuals who are covered under a group health insurance policy can port their policy to an individual health insurance policy or to another group policy provided by the new employer when they leave their job. However, the policyholder needs to fulfill certain conditions to be eligible for portability. It’s important to note that the new insurer may provide the policyholder with a waiting period for certain pre-existing diseases, and the premium for the individual health insurance policy should not exceed the premium charged for the group policy. Therefore, it’s recommended that individuals who are planning to leave their job should check the IRDAI guidelines and talk to their employer’s HR department and health insurance provider to understand their options and eligibility for portability.

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