IRDAI-approved strategies to retain your health insurance after a layoff!

After being laid off, check your contract for health insurance options. Port your corporate plan or buy a personal plan. If still uninsured, explore government schemes.

Health insurance

Approximately 17,000 employees were laid off in the first half of 2023, and this process is far from over. Besides losing a steady income, people also fear losing their health insurance policy. This blog aims to help you navigate corporate insurance after a layoff and be at peace during medical emergencies. 


  • Review your contract to determine if there are provisions for health insurance coverage after a layoff.
  • Some companies offer extended health insurance coverage for a specific period post-job loss, allowing you to maintain your benefits.
  • If your employer doesn't provide post-termination coverage, consider porting your corporate medical coverage to a personal health insurance plan or purchasing a new one.
  • Explore government schemes like Pradhan Mantri Jan Arogya Yojana, Ayushman Bharat, and Awaz Health Insurance Scheme if individual policies are unaffordable.
  • Health insurance safeguards against unexpected medical expenses. Consider discussing post-layoff coverage options with your employer.

How does health insurance work after termination?

To determine whether employees are entitled to health insurance benefits post-layoff, they must check their contracts or speak to human resources. Check the terms and conditions of the corporate medical insurance policy to see whether there is a provision for continuing coverage post-job loss. If there is, review what is the duration and how you are eligible. 

Most companies conducting layoffs provide health insurance benefits after termination for a particular period. This helps employees enjoy the coverage until they find another employment. The process of availing of group insurance remains the same: using your insurance card. 

Also Read: Asking for additions to your health policy as an employee 

What happens if a company does not provide insurance benefits post-termination?

If companies do not offer group insurance benefits after being laid off, there are still a few options. The employees can port their corporate medical coverage to a personal health insurance policy. The coverage and benefits of the policy remain the same, but the employees will have to pay the premium from their pocket. Employees can also purchase a personal health insurance policy that provides the same coverage. In both cases, they can choose a personalised plan that caters to their specific health needs.

Also Read: Benefits of having personal insurance during layoffs 

Explore schemes offered by the government

The Indian government provides various healthcare schemes for free or with a subsidy. You can look into these schemes if you cannot purchase individual policies. Some popular government schemes include Pradhan Mantra Jan Arogya Yojana, Ayushman Bharat, and the Awaz Health Insurance Scheme. 

Parting thoughts

A good health insurance policy protects individuals from unexpected medical expenses. Fortunately, some employers extend health insurance coverage even after layoffs for a certain period. But if not, discussing raising healthcare insurance for a specific time post-layoff with your employers is worthwhile. This provides employees with peace of mind until they find a new job. 

Find the latest articles on insurance here.


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