Summary of this article
Employer-provided health insurance ends immediately after job termination in India.
Porting to a personal plan is possible only within one to two months.
New retail health plans may suit younger, healthier individuals without medical history.
Acting before your last working day prevents costly coverage gaps.
In the aftermath of a layoff, one of the most immediate and overlooked consequences is the loss of health insurance. With rising medical costs, this can turn a difficult moment into a financial risk, especially if you have dependents or pre-existing conditions.
In India, the moment your employment ends, your employer-provided health insurance coverage typically ends with it. As soon as the human resources (HR) department updates your exit details, your name is removed from the group insurance list. There are no extensions unless specifically arranged. "Employer-provided insurance is only meant for active employees. As soon as an employee leaves the company, it ends," said Hari Radhakrishnan, an expert, Insurance Brokers Association of India (IBAI).
How To Secure Your Health Cover
Many assume they can continue the same policy, but this is not how group health plans work. However, all is not lost. Some insurers offer the option to shift to a personal or family floater plan. But even this is not right—it's subject to the insurer's approval. And timing plays a huge role.
According to Santosh Sahoo, vice president, SME Insurance at Probus, there's a limited period, typically around one to two months after your final working day, when you can request to convert or port your group cover. If you miss this window, you may have to start afresh, which could include waiting periods or medical tests. For those with pre-existing health issues or aged above 45, such delays can be risky.
The other option is to buy a new retail health insurance plan from scratch. If you're under 40, healthy, and without ongoing treatments, this might be a better path. New policies today offer better digital tools, wellness benefits, and flexibility. But here, you bear the entire premium cost—unlike employer plans, which are often partially or fully funded by the company.
Whether to port the group cover or take up a new one depends on your circumstances. Those with a medical history may find it safer to opt for continuity. Others might benefit from newer policy features in a fresh plan.
What's critical is that you don't delay. Once your coverage stops, you're no longer protected, and that gap could prove costly. As soon as you receive notice of termination, speak to your insurer or a broker. Check out your options before your last working day, not after.
In times of job uncertainty, keeping your health insurance intact is not just a financial decision; it's peace of mind.
