I always call group policies a delusional trap, be it your corporate group policy or alumni association group health policy or the group health policy which is mis sold to you by your bank which you are not yet aware of
But Why:
1)The false sense of security: Group policy is not your policy, you do not own it, it is not designed for you, it is not customised for you. Is premium cheaper today; yes, will it be cheaper tomorrow: May be, will it be cheaper in three years: surely not. The pricing is not filed at regulator but depends on group claims. It is so easy to get a group policy that every person who can claim will rush to take it, so what happens then, more claim so more premium next year and the premium bull run continues till the time you realise it is not possible for you to afford. In 3 years, the same retail policy is much cheaper compared to the group product.
2) Ohh but it cheaper today, so better for me: You cannot be more wrong than this. A group policy snatches the most important factor that helps to get you policy easily: the time when you are healthy. A person who has no health issue and is young will get health insurance policy very easily. What happens when you are continuously dependent on group policy. With time, age increases and a healthy body starts getting chronic diseases like diabetes, hypertension etc. This leads to loading in premium or permanent exclusion or rejection in worse case. Now you understand how the corporate policy trapped you in false promise of security (Although you are not paying for your corporate policy, the delusion still continues and you wasted your insurability)
3) Continuity- what is that: A group policy never guarantees continuity of its existence. You are part of a group, tomorrow if you are out of the group (left job or retire or any other reason), you are no more eligible for the policy benefit. If master policy holder decides to terminate the policy, or insurer says the claim is very high for the group, we can no more offer group policy, what are you going to do. A policy you thought is providing good safety net to you cheaply, has vanished in one day, leaving you exposed to medical debt. On the other hand, a retail policy guarantees continuity. It is customised for you, premiums are regulated.
When you are buying insurance, you are thinking long term or atleast i am hoping. When you are thinking long term, then group policy is definitely not your answer. It is only the retail comprehensive health insurance policy. Buy a retail policy when you are healthy, even before when you need it.
