TCS is planning to lay off more than 12,000 employees. This news has created anxiety not only among IT workers but also among employees in other sectors.
When someone loses a job, they also lose access to many benefits—one of the most important being group health insurance.
This health coverage is especially crucial for employees whose parents are elderly.
Group Health Insurance: A Big Support for Parents
Many companies offer group health insurance that includes not only the employee but also their parents. However, some companies only cover the employee, spouse, and children.
If your company covers your parents too, this is very useful. Buying a health insurance policy separately for senior citizens is not easy. It’s costly and comes with many restrictions.
Difficulties in Buying Health Insurance for Senior Citizens
Insurance companies usually avoid issuing health policies to older people. And if they do, the premiums are very high.
Also, most policies have a waiting period of three years for pre-existing diseases, which makes it harder.
So, if your parents are currently covered under your company’s group policy, and you rely only on this, it’s wise to convert it into a retail policy before leaving your job.
Converting Group Policy to Retail Policy is a Better Option
You can also buy a separate new policy before leaving your job. But even then, pre-existing diseases won’t be covered immediately—you’ll still face a waiting period of three years.
That’s why converting your existing group health policy into a retail one is better. According to the latest guidelines by the Insurance Regulatory
and Development Authority of India (IRDAI), insurance companies must allow switching from group policies to individual (retail) cover. The sum insured and benefits will remain the same.
Waiting Period Credit is Carried Forward
The biggest benefit of converting is that your waiting period credit is carried over.
For example, if your parents were already covered for two years, they’ll need to wait only one more year to get full coverage for pre-existing conditions.
This reduces the standard three-year wait to just one year.
Know the Policy Terms Before You Switch
Ask your HR team about how to convert your group health policy into a retail policy. However, make sure to read and understand the terms
and conditions of the new policy carefully. Keep in mind that you might not get all the benefits in the retail version that you had in the group policy.
