Your company health insurance usually stops on your last working day, for you and everyone on the floater, because the group policy is your employer's contract with the insurer, not yours. Before it stops, you can ask that insurer to move you to its own individual or family floater policy and keep the credit for waiting periods already served; a fresh policy bought after you leave starts every wait from zero. Pooja's six-week gap between jobs below shows what each choice covers, and from when.

When does company health insurance end after you resign?

The rules for group health insurance after resignation are in the policy schedule, which HR can share. Most group policies cover you while you are on the payroll, so the notice period is usually covered and cover ends with your last working day; some employers set a different date. Your spouse, children and any parents on the floater lose cover the same day.

Your next employer's policy usually starts on your joining date. The days in between are the health insurance gap between jobs, and any hospital bill in them is yours.

What does a six-week gap cost Pooja on each route?

Pooja earns ₹30 lakh CTC, about ₹1,81,400 a month in hand (FY 2026-27, new regime, PF on full wages, as worked in CTC vs in-hand salary). Her employer's ₹5,00,000 group floater covers her and her husband, who has had diabetes for four years. They joined it three and a half years ago, and like many group policies it covered his diabetes from day one. She has six weeks between jobs, and the insurer has offered to migrate them.

Route 1: no cover. Any bill in those six weeks is theirs. A ₹2,00,000 bill (an assumed figure) is 1.1 months of Pooja's take-home; at a ₹15 lakh CTC, about ₹1,00,700 a month in hand, it would be two months.

Route 2: a fresh policy bought in the gap. A new individual policy usually excludes illness for its first 30 days, so for most of the six weeks only an accident would be paid. Her husband's diabetes is a pre-existing condition, and so are complications linked to it: the policy can exclude them for up to three years, the maximum pre-existing disease waiting period IRDAI has allowed since 1 April 2024, though some policies offer one or two years, often for a higher premium.

Route 3: migrate before the last working day. Moving to the same insurer's individual or family floater policy carries over the credit for waiting periods served, to the extent of the sum insured (IRDAI's 2024 health insurance master circular). Three and a half years served is more than a three-year wait, so the migrated ₹5,00,000 can cover his diabetes from the day the group cover ends, with no fresh 30-day wait. With more than 36 months of continuous cover, IRDAI's 2024 product rules do not let the insurer underwrite the move up to that sum insured.

Route Illness covered from Husband's diabetes covered from
No cover the new job's joining date joining date, if the new group policy covers it
Fresh policy on day one of the gap day 31 up to three years later
Migration before exit the day group cover ends the day group cover ends, up to ₹5,00,000

What carries over when you migrate a group policy?

The credit follows the sum insured. If Pooja migrates at ₹5,00,000, the whole policy keeps the years served. If she raises it to ₹10,00,000, the extra ₹5,00,000 is new cover with its own waits, and the insurer can underwrite it; at later renewals it cannot, unless the sum insured goes up again. As a marker, the insurance planning guide puts a ₹10 lakh to ₹15 lakh family floater at an indicative ₹15,000 to ₹40,000 a year in 2026, rising with the eldest member's age and varying by insurer.

After migration the premium is hers, at the insurer's rate for the individual policy, so ask for the quote with the migration form. The group policy's features do not come with her: the individual policy has its own room-rent limit, sub-limits and exclusions, which may differ from the office cover described in is company health insurance enough.

A super top-up on ₹5 lakh cover can add cover above the migrated ₹5,00,000, though as a new policy it starts its own waits.

What should you do before your last working day?

Ask HR for the policy number, the insurer, the date cover ends and the migration form as soon as you resign, so the paperwork is done while the cover is in force. Apply for everyone on the floater, and get the new policy's start date in writing so it begins the day the old one ends.

Check whether the new employer's policy covers pre-existing conditions from the first day and your spouse, and when enrolment closes. Keeping the migrated policy after you join removes the next gap. You can hold both policies: when a bill is larger than one policy pays, you can claim the balance under the other. At renewal you can also apply to port it to another insurer, which keeps the credits up to the sum insured if the new insurer accepts the proposal.

Dhi looks at the health cover your family holds alongside cash flow, net worth and goals, and nudges when something needs attention. Dhi answers questions like this one from your own numbers and earns no commissions on any policy.

Frequently asked questions

Only under the old regime: section 80D of the 1961 Act allows up to ₹25,000 a year for yourself, your spouse and children (₹50,000 if you are a senior citizen), with a separate limit for parents. Under the new regime, the default for FY 2026-27, health premiums give no deduction.
Usually yes, because you are an employee until your last working day and group cover runs until then. If the notice period is bought out or shortened, cover ends on the actual relieving date, so confirm that date with HR before planning any treatment.
Not for the new job itself, but the weeks between jobs are still uninsured, which matters with a family member who has a long-term condition. The larger cost comes later: the next exit, layoff or retirement ends that cover too, and a policy bought then starts its waits from zero at an older age.

This is general information for salaried individuals in India, not personalised financial advice.