Why is your healthcare policy not enough and you need to purchase a different insurance?

Apr 09, 2019

Read on to know reasons why your healthcare insurance is not enough and you need to buy a different healthcare policy.

Aside from your property, another thing you need to look after is your health. There’s no telling when illness or injury might strike, so it’s always a good thing to have health insurance that can cover your medical expenses during medical emergencies. But is your health care policy enough?

Most companies already offer health insurance as part of non-salary benefits for their employees. But keep in mind that not all health plans offered by an employer provides maximum benefits. Although some may provide wide coverage, you’re almost certain to lose those benefits if you decide to quit your job (unless you offer to continue paying the plan out of your own pocket).

What are some of the factors you need to consider when getting another healthcare provider? Philcarnews.com lists them down, so take a closer look if your company’s current healthcare plan is enough in case of medical emergencies.

I. Why purchase another health care policy?

Most people are contented with their organization’s health care policy, not realizing that it may not be enough in certain emergencies. The main reason why most people don’t consider another health care policy is the cost, but then, getting sick or injured is much more expensive. If a medical emergency happens to you and you only have very little coverage with your existing company insurance, you’ll probably end up being heavily in debt or bankrupt.

Aside from your company’s health plan, getting another health care insurance is important because:

1. You can extend the coverage with no restrictions

Medical emergencies can happen anytime and anywhere; no one knows what will happen next in our lives which is why it is a must to be ready. Purchasing health insurance that has a more comprehensive coverage is beneficial to you if ever a medical emergency occurs. You won’t have to face the same problem as what most employees who only have a company healthcare insurance do.

doctor pressing a screen

Purchasing health insurance that has a more comprehensive coverage is beneficial if ever a medical emergency happens

2. You can set your terms

As the paying policyholder, you have control over the terms and conditions of the health insurance that you purchase. You can include your desired beneficiaries, whether it’s your kids, parents, or spouse, as long as you pay the corresponding premium. Different ailments and illnesses are also covered depending on your needs. So, you have the choice to purchase the level of coverage you want to have as long as you can afford the premium costs. 

3. You protect your personal savings

Many Filipinos don’t have health insurance, especially those who are unemployed. Some 25% of those people almost lose their entire savings because of hospitalization and other expenses related to sickness or injury. If your personal savings are not enough, you would need to ask for help from other family members, who would also need to touch their own savings as a result.

Corporate health care policies typically have limited coverage. If the medical expenses exceed the guaranteed amount covered by the health care policy, then you will still need to pay the balance from your own pocket, which is almost the same as not having healthcare insurance at all.

II. Factors to consider when getting a healthcare provider

1. Restrictions on coverage

Although health maintenance organizations or HMOs provide health care assistance, many of them also have restrictions attached. These restrictions can be imposed anytime, and they will certainly have an impact on your health care needs. You also need to check the level of coverage of the organization’s health care plans. If your medical expenses are higher than the insured amount, then you have to pay the remaining balance, which will surely strain your finances.

Health cost written in paper

Many HMOs impose restrictions on their health care plans

2. Terms and conditions of the policy may be changed

Employers negotiate the terms of an organization’s healthcare policy as a matter of course, like the number of covered illnesses, the number of dependents included, and how much to allocate for every illness per year. If you or your dependents happen to be afflicted an illness or condition that’s not included in the list, the health care plan will not apply. In this case, you’ll have to shoulder the entire cost of treatment out of your own pocket.

On the other hand, the organization might include certain illnesses, but it will also increase the premium on account of an increase in medical costs, a higher than anticipated number of claims and many others. Policyowners will be at a disadvantage if the coverage of the insurance policy stays the same despite the increase in premiums.


Employers negotiate the terms of a healthcare policy like the number of covered illnesses and the number of acceptable dependents

3. Retirement conditions

Upon retirement, you are no longer entitled to your employer’s health care plan. Even if you purchase health insurance back then, the premium costs will surely be higher for you since you will soon become a senior citizen. And on top of that, you will also be required to undergo more medical tests, by virtue of your age. The best thing to do is to invest in a health care policy independently, the earlier the better since the premiums are low, there are no exclusions, and no medical examinations. You can also enjoy discounts and no-claim bonuses.

old man conversing to a doctor

After you retire, you are no longer entitled to your company’s health plan

Health is definitely wealth, especially in these times. Neglecting it means facing not only health complications but financial problems as well. It is a must that we take good care of our health to avoid this predicament.

Accidents are another thing to look out for as well. A health care policy that provides comprehensive coverage and a good set of benefits become essential. To this end, review your existing health care policy and see if it is currently enough for you and your family’s needs. It will not only help you to get better, but it will also ensure that you’re financially stable even in times of medical emergencies.

>>> Get more useful tips and advice for all car owners here

Source: Hanna Miel Sanchez