Those protected by group insurance can convert it to an individual one at exit, but know the risks

                                      

For those relying entirely on group health covers provided by employers, retirement is a worrying time.Buying a cover at the time of retirement can be difficult because of age and the state of health. We tell you the options available.

TIME TO PORT

Till the Insurance Regulatory and Development Authority's (Irda) guidelines on health insurance portability came into effect, those who did not buy an independent health cover during their working years had to brace for steep individual premiums or go without cover. Thanks to the regulation, you can now move to an individual policy offered by your group insurer at the time of retirement or separation, while retaining the continuity benefits. Your waiting period will be short; and if you are retiring after a long stint, it would be non-existent.

THE PROCEDURE

To seek a transfer of your policy from the group platform to individual, you will have to inform your employer at least 45 days in advance. As soon as an employee resigns, he needs to submit the proposal form as well as a portability form to the insurer. They also require a letter from the employer certifying the number of years of continuous coverage under the group insurance scheme. Your insurer could insist on a medical check-up too.

READ THE FINE PRINT

You may encounter hurdles when seeking portability. Check the policy wording for unfavourable clauses.Look for sub-limits like room rent re striction in individual policies since in group policies they are usually absent. Some policies exclude treatment of diabetes and hypertension and related complication for some time.

The insurer may also follow stringent underwriting policies, resulting in re jection of your proposal. People who depend on portability as an option are taking a risk. Insurers will assess your proposal as a fresh one. In case of any adverse health history or declarations you have a very slim chance of getting through.

Also, the reduction in waiting period is applicable only to the existing sum insured under the group policy .