How to Convert Your Employer Health Insurance to an Individual Health Plan?

Group Health Insurance Policy or Employer Health Insurance Policy is one of the popular insurance options among salaried employees. The reason being employers pay the premium on behalf of their employees in such policies. However, employees often ask – whether they can convert an employer’s health insurance to an individual health insurance plan if they switch jobs?

As per the terms and conditions of the Insurance Regulatory and Development Authority of India (IRDAI), an employee (an insured member under a group policy) can switch to an individual health insurance plan and transfer the benefits of any waiting period available as a member of the group health insurance policy. One important thing to keep in mind here is that an individual can only migrate to an individual or family floater plan of the same insurer so that the waiting period can be carried forward. However, he/she can port to another insurer after completing at least one year with the current insurer.

Now you would want to understand the process to convert your employer health insurance to an individual health plan. In this article, we will discuss the same so that you can convert in a hassle-free manner. Let’s start without any further ado!

Procedure to Convert Your Group Health Insurance to an Individual Health Plan

As told earlier, you can switch to an individual health insurance policy from a group plan after changing or leaving your current employment. To do the same, you will need to follow the steps mentioned below.

Step 1: Intimate the Insurer

Firstly, you will need to intimate the group insurer about migrating to an individual health plan. To enjoy a hassle-free experience, you should inform the insurer at least 30 days before the last day at your job. The maximum period available to intimate the insurer is until five days of leaving the employment.

Step 2: Select the Health Insurance Policy

Now, choose the individual health insurance policy according to your requirements. When doing the same, you will need to keep in mind several factors – coverage amount, premium amount, waiting period, policy term, exclusions, etc.

Step 3: Fill in the Port Request Form

Once you decide on the policy, you will need to fill a form requesting for the migration from the group to the individual health insurance plan. In this form, you will need to fill in a few basic details such as existing policy details, claim experience, age proof, medical history, declarations (if any), etc. Insurers may also ask for a pre-medical checkup depending on your age to get information about your medical history.

Step 4: Submit the Form and Necessary Documents

Submit the duly filled form and required documents (copy of the resignation or retirement letter stating the last date of employment signed and stamped by the authorized person of the employer) within 45 days before the renewal date of the existing group health insurance policy.

Step 5: Make the Premium Payment

Once the insurer receives your application and other necessary documents, your application will be processed. You will get the details (terms and conditions) of your policy and premium amount on your registered email ID within 15 days. If you are satisfied with the same, pay the premium to start enjoying your policy benefits.

What are the Benefits of Converting Your Group Health Insurance to an Individual Plan?

When you shift from a group health insurance plan to an individual plan, you can enjoy several benefits. We have talked about them below. Do check.

1. When migrating to an individual cover, you can increase the coverage amount (sum insured) according to your needs. However, the benefits of the waiting period will be applicable only on the existing coverage amount.
2. During the transfer, the credit gained by you (in the form of a waiting period for pre-existing diseases and other illnesses) under the group policy will be carried forward to an individual plan. You can only enjoy this carry-over benefit if the policy has been maintained without any lapse.
3. As compared to the group policy, you can enjoy comprehensive coverage with an individual health insurance plan. The insurer will also allow you to choose add-ons (to enhance your overall coverage) as per your needs.