by Mr.
AMIT KUMAR ROY,
AEGON Religare Life Insurance
Several
people feel that the coverage their employer provides under the company’s group
insurance scheme is sufficient. But, group cover at a work place has more to do
with the employer’s obligation & less with individual needs.
You may
find yourself without insurance cover if you retire or are between jobs.
Therefore, it’s best to treat individual coverage separately without
considering the group cover.
Some
glaring differences between group cover & individual protection are:
Health insurance..!
In the area
of health cover, what an employer would normally do is to take a plain vanilla
cover of a blanket group product.
While
the cost of the policy in such a case would be low, there may not be enough
cover for individual needs.
There is
also no scope for customisation - no cover for critical illness, cost of
hospitalisation and treatment - all these usually go much higher than the base
coverage.
Loans..!
Very
often, life insurance covers are used as collateral for loans. Banks and
financial institutions use these to judge your networth too. No such things are
available with a group cover.
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| Mr. AMIT KUMAR ROY, AEGON Religare Life Insurance |
Riders..!
Even on
pure term covers taken on individual lives, you have an array of additional
policy riders that make the protection really meaningful.
For
instance, you have riders such as disability benefit, accident double cover,
critical illness cover, waiver of premium, family monthly income benefit cover,
covers for specific diseases, like cancer, and so on. These don’t cost much
either, but are available only on individual policies.
Longer period benefits..!
If one relies just on a group cover and goes
for an individual protection only when employment ceases, the cost of the
insurance can be very high. This apart, because of the advanced age, it may
attract some restrictions or extra premium.
A
long-duration pure term individual cover becomes even more handy at advanced
ages. These days, riders can also be tailor-made to suit your specific needs.
About
the author..!
The
writer Mr. AMIT KUMAR ROY is Distribution Officer, AEGON Religare Life Insurance.
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