How To Secure Health Insurance When You're Unemployed

By exploring the below-mentioned health insurance options, one can easily make an informed choice and continue to be covered until they are employed again.

Being unemployed is stressful as it results in losing access to employer-backed health insurance. However, there are many options that you can opt for to secure coverage during unemployment. Individual health insurance plans provide bespoke coverage, while short-term health insurance or a plan with the lowest sum insured provides an affordable option for a limited period. Family floater plans cover multiple members under one policy, while a few companies may extend your coverage for some time after a layoff.

Health insurance offers a financial safety net that protects you and your family in medical emergencies. Life throws curveballs every once in a while, and in the unfortunate incident of a job loss, you will no longer be able to avail your employer-sponsored health insurance plan. It is not easy to manage a plan from your savings when you are unemployed. In this blog, we will discuss the various options to secure affordable health insurance coverage in case of a job loss.

Securing Health Insurance When You are Unemployed 

1. Individual Health Insurance

Insurance companies offer individual health insurance plans even without a job. These plans can be customised to suit your budget and needs. An individual health insurance plan provides wider coverage, but it is best to compare various policies to find the one tailored to your needs.

2. Short-Term Health Insurance

A short-term health insurance plan provides you coverage only for a limited time. Its premiums are low and coverage is also limited compared to a typical health insurance plan.

3. Family Floater Plans

A family floater health insurance policy insures family members for a fixed insured amount. Thus, you are not at risk of losing your coverage even after you have lost your job. Such plans can be cost-effective because you do not have to pay for an individual health insurance plan as you are covered along with other members of your family.

4. Employer-Sponsored Health Insurance Extension

Some employers let former employees use their existing health insurance policy for a period after a layoff. If you have such an option, you can stay covered by yourself paying the premiums to the insurance provider.

5. Plan with Lowest Amount Insured

Such a plan will provide you with basic coverage and is relatively cheaper compared to other options. You can choose such a plan based on your needs as it can be helpful in case of any medical emergency.

Factors to Consider to Choose the Best Insurance When You Are Unemployed

• Cost and Benefits

Affordability plays a huge role when buying a health insurance policy, especially when you are unemployed. This can include your premiums, out-of-pocket costs, and, deductibles. Also, check the benefits and coverage under each plan as it is important when you have a pre-existing condition like diabetes or heart disease as it may or may not be covered. Compare quotes from various providers and choose the one that best suits your needs and is affordable.

• Network Hospitals

If you have an established relationship with your medical providers, it makes sense to opt for a plan that already has them in the network.

• Medical History

Do not hide any details about your medical history when applying for health insurance, as it can affect your claims later.

• No Claim Bonus

No Claim Bonus is a reward that you, as a policyholder, will receive for maintaining good health and not filing for any claim during a policy year. The NCB discount is offered on the premium during policy renewal.

• Catastrophic Health Insurance

Catastrophic health insurance plans have high deductibles and low premiums. They provide coverage for severe medical emergencies like accidents or sickness and cover preventive services and essential health benefits like annual check-ups, vaccinations, and health screenings.

Conclusion

Losing a job is just a phase and not the end of the road, and if you have been unemployed for a short period, insurers do not consider it a substantial risk. By exploring the above-mentioned health insurance options, you can easily make an informed choice and continue to be covered until you are employed again.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

(This article is part of IndiaDotCom Pvt Lt’s consumer connect initiative, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility or liability for any errors or omissions in the content of the article.)