5 Reasons Why You Need To Think Beyond Your Corporate Insurance Covers

Posted on May 30 2018 - 2:15pm by Editorial Staff

Corporate insurance is a bonus for all employees since their health, and medical expenses are all covered for. Right?


You might think that just because your organisation has provided you with health or life insurance you do not have to step out of your way to look for insurance. But, if you have ever been proactive enough and gone through the fine print, you will know that corporate covers provide you with the promised amount only if they have to.

Insurance providers for corporates do as much as they can to protect their money, which is why they only provide regular insurance policies. This makes it difficult for the insured to claim through an employer-group policy. On the other hand, you also have your employers, who seek to minimise their own costs rather than their employee’s wellbeing.

Hence, the result is that you only get a bare-minimum coverage insurance policy that only covers you limitedly.

Given below are some reasons that depict why you need to think beyond your corporate insurance covers and get yours as well as your family’s life secured for the future.

#1 Peace of Mind Even After You’re Gone

Death is unpredictable, and so are corporate insurance covers. If you have avoided taking life insurance thinking that you are covered for any mishap, then it’s time to ask, “What about my family after I am gone?”

Personal insurance covers ensure that your family is covered and financially secured even after you are gone or face partial or permanent disability. Having an insurance policy can help your family tide over difficult times. Whether it is about paying for your child’s education or ensuring that your spouse receives a steady income for running her daily life, personal insurance plans to do it all.

#2 Tax-Saving Purpose

Did you know? An employee is not entitled to tax deduction under the insurance cover provided by his employer. On the contrary, with personal insurance policies, you are eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C for the premium you pay towards your life insurance policy. Furthermore, you are also eligible for tax-free proceeds on death or maturity benefits under Section 10 (D) of the Income Tax Act, 1961. Isn’t that a great reason to rethink your plans for insurance?

#3 More Scope for Future Planning

When corporate insurance originated, healthcare was not an expensive affair, and insurance was not a necessity. Today, the scenario is entirely different with terminal illnesses almost robbing families of their entire wealth. Hence, insurance is a necessity as these plans aim to decrease the costs that are involved in getting medical care.

Personal insurance plans today cover everything, right from admission to the hospital to discharge even if the stay was as short as 7-10 days. In fact, term life insurance provides immediate financial assistance for various needs and goals of your family when you are no more. Today, term life insurance also come with riders like- Accident and Disability Benefit Rider that helps you get an additional sum assured in case of your demise or disability due to an accident.

Corporate plans can only suffice ordinary health expenses, and the truth is that it is not enough.

#4 Helps Achieve Long-Term Goals

If you plan your personal insurance wisely and early in life, then you can easily achieve whatever long-term goals you may have- like buying a home or having a worry-free retired life.

Personal insurance guarantees you a diverse range of investment options that can be chosen via different types of policies available in the market. Read through the fine print carefully if you are going to opt for an investment-linked policy. This will make you aware of the potential risks and returns.

#5 Personal Insurance Stays Lifelong

The sooner you get yourself insured, the more benefits you will obtain. The same, however, cannot be said for employer-provided insurance policies since they are specially designed for the employees of a particular company.

Your employer-provided insurance policy will only be with you until your term of employment with the company. Also, it is of no guarantee that your next employer will provide you with insurance benefits. So, it is advisable to get yourself an insurance policy as soon as you land your first job so that you can remain secure even if you change jobs.

You need to be covered for as long as you live, and your insurance must take care of your family even after that. The older you grow, you will have higher chances of being diagnosed with illnesses and terminal medical conditions like diabetes, blood pressure, and even heart problems, which will increase your premium or even make it difficult to buy insurance. Hence, irrespective of your employer’s insurance, it is important to get your own insurance policy at the early age.


To have a well-planned future, you need coverage that can offer you and your family assured lump sum benefits at flexible terms and conditions. Being wholly dependent on corporate insurance covers is not a wise decision in the present day and age.

Especially because expenses related to everything have touched the skies. Hence you need to make financial plans a priority and place personal insurance at the top of your list. After all, what is the value of your life if there is no security for you and your loved ones.

About the Author

Editorial Staff at I2Mag is a team of subject experts.