How to switch from group insurance policy to individual insurance

Transitioning from a group insurance policy to an individual one is a crucial step that requires careful planning and timely action

Shifting from a group insurance policy to an individual health insurance plan is common. People typically do this when they change jobs, start their own businesses, or seek more personalised coverage.

 

Group insurance is provided by employers for employees and their families. The coverage ceases when an employee leaves an organisation. Shifting to an individual health insurance policy ensures continuous coverage tailored to your personal health needs.

 

“Customers struggle to shift from group to individual plans, in circumstances where they no longer are part of the insured group. Group insurance is definitely cheaper, and easier to enrol while individual plans are more expensive and customers need to fill in long proposal forms and may be required to undergo medical tests before getting insured,” said P Nandagopal, founder and chief executive officer of Upsure.

 

Switching from group to individual insurance

 

Notify your insurer: Inform your current group insurance provider about your intention to switch at least 30-45 days before the expiration of your group policy. This early notification helps avoid any lapses in coverage.

 

Research individual plans: Compare various individual health insurance plans available in the market. Consider factors such as:

 

Coverage options

 

Sum insured

 

Premium costs

 

Additional benefits like riders or wellness programs

 

Request portability forms: Contact your insurer to obtain the necessary forms for transitioning from a group plan to an individual plan. Fill these out accurately, providing details about your existing policy and medical history

 

Health assessment: Be prepared for a health assessment that may include medical tests. The results will influence your premium rates, as insurers evaluate the risk associated with insuring you as an individual

 

Submit documentation: Along with the portability form, submit required documents such as:

 

Existing group policy details

 

Claim history

 

Health profile

 

Ensure all documentation is submitted well in advance of the policy expiration.

 

Select your plan: After reviewing options, choose an individual health plan that meets your requirements. You can opt for a single plan or family floater coverage depending on your needs.

 

“Switching from a group health insurance policy to an individual plan requires careful planning to ensure a seamless transition and uninterrupted coverage. Ideally you should inform your proposed insurance about the switch 30–45 days before your group policy expires,” said Ajay Shah, head – distribution, Care Health Insurance.

 

“You should also consider factors like waiting period for pre-existing conditions, network of cashless healthcare providers and claim settlement ratio of the insurer. Lastly, individuals should fill the proposal form in person and be actively involved in the complete application process, to avoid any incomprehension of the policy details,” he said.