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Why Is Employer Health Insurance Not Enough?

Published On Nov 01, 2021, Updated On Nov 02, 2021

There are different types of health insurance plans that are available in the insurance market some of them being family floater health insurance, group health insurance, personal accident covers, critical illness plans, maternity benefit plans, etc. One of these health insurance plans are chosen by the policyholders based on their requirements. Therefore, it is always advised to analyze your requirements before investing in a particular health insurance plan. A health insurance plan is sufficient and enough for the policyholder when it is able to meet their demands cost-effectively without compromising the quality of experience. To look for such sufficient plans you can compare several ones in the market and then choose one that is the best. 

Group health insurance plans or commonly known as the employer health insurance plans are the covers that are provided to the employees working in an institution, organization, or a company by their employers. This health insurance cover provides coverage to all the employees of the company until they are a part of the company. Some companies offer employer health insurance plans to their employees in order to provide them protection against the possible medical expenses in case of an emergency. It gives the employees a sense of respect and makes them value their workplace. 

Why Is Employer Health Insurance Not Enough?

About Employer Health Insurance Covers 

An employer health insurance policy insures a group of people working under an employer, organization, or company. The insurance policy is applicable only until the person is a working employee of the organization. To value the human capital of the company and to look after their medical expenses, the employers invest in these group health insurance plans. The coverage of an employer health insurance can differ from one employer to the other, as it is bought under their name. Maternity benefit plans are offered to the female employees by the employer. 

Must Read: Benefits of Group Health Insurance Plans For Employers

Benefits of An Employer Health Insurance Plan

Following are some of the key benefits of an employer health insurance plan for the employees: 

  • The cover is extensive and the coverage is distributed among the policyholders.
  • Employees need not go through the pre-medical health check ups for buying the cover
  • Comprehensive plan is offered including a list of diseases to compensate for
    pre-existing diseases are included from day one of the purchase of the plan.
  • Maternity benefit coverage is available for both the mother and the newborn baby. 
  • The premium is cost-effective when compared to the individual health insurance plan. 
  • It provides its policyholders with high quality medical facilities in private hospitals. 

Why Is Employer Health Insurance Not Enough?

Let us look at some of the possible reasons that justify the insufficiency of the employer health insurance plan: 

  • The employer plans are valid only as long as the employee is a working individual of the organization, institution, or the company. 
  • The coverage of such plans are limited and might not be sufficient to meet the demands in case of critical illness treatments. 
  • Such plans cover a group of people working under the firm and do not cover their dependents. Therefore, ultimately the policyholder has to invest in a separate health insurance plan for their loved ones. 
  • The employer health insurance plan is a contract between the insurer and the employer and therefore, it cannot be converted into an individual health insurance policy. 
  • The coverage of this plan is decided by the employer of the company and therefore it might not meet the requirements of the employees. 
  • This policy is not a wise option to cover the future expenses of the people or their extended family.


It is wise for the employees to not depend on the employer health insurance plans for their financial aid for medical treatments as it can be insufficient. These plans are distributed among a group of people working under the same firm and therefore, it need not meet your desired requirements. 

Also Read: Do You Think Your Employer's Health Insurance Is Enough

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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