How to maintain health insurance coverage after a layoff

Checking policy’s terms and conditions

If you have been laid off, you should review and understand the terms and conditions of your current employer-offered health insurance policy. You should specifically check for whether their policy includes a provision for continuing coverage after job loss, and if so, for how long and whether you are eligible for the same.

Check if you can convert it to a personal plan

You may have the option to shift from the company plan to a personal insurance plan offered by the same insurer. However, this might require re-evaluation and review of medical reports. Try to schedule all the tests and appointments before your period of employment ends so that you can give your full attention to your job search later without worrying about insurance. 

Ask if you can port the existing policy

If it is not possible for you to continue insurance coverage after job loss with the existing insurer, you can consider shifting to an individual policy from a different insurer.

Negotiate with the employer

If you have been laid off due to financial reasons, it is worthwhile to have a discussion with your employer regarding continued health insurance coverage for a specified period after the term of employment has ended. This can be included as a part of the severance package. Many companies offer generous severance packages, especially in the event of sudden layoffs.

Purchase a fresh individual policy

If you are unable to port your existing policy or reach a middle ground with your workplace, you can consider buying an individual policy. It is important to research the market to understand which policy will give you the best coverage and match your budget at the same time. Nowadays, you can buy a health insurance policy online easily from your smartphone!

Look for Government schemes

The Government of India offers several health insurance schemes such as Ayushman Bharat and Pradhan Mantri Jan Arogya Yojana (PMJAY). Such schemes provide free or subsidised health insurance coverage to economically weaker sections of society. You can always check if you are eligible for these schemes and if they can provide the necessary health insurance coverage.

Maintain a healthy lifestyle

While health insurance policies provide financial protection in case of medical emergencies, you should also focus on maintaining a healthy lifestyle to prevent illnesses. This includes eating a balanced diet, exercising regularly, getting enough sleep, and avoiding unhealthy habits such as smoking and excessive alcohol consumption. 

If you get laid off, it can be a stressful time and the temptation to opt for unhealthy coping mechanisms is strong. However, ill effects could be detrimental not only to your health but also to your chances of purchasing affordable health insurance, as premiums can be on the higher side for unhealthy individuals.

Manage your finances

Most people's immediate reaction to losing a job is to worry about how to manage finances. When daily expenses are a concern, investments tend to take a back seat. Some of the common financial problems faced by people at this point include missing on premium payments. With a bit of planning and setting up an emergency fund in advance, panic can be avoided so you can make logical financial decisions and ensure uninterrupted health insurance coverage.