New Delhi, May 19 -- A college senior called recently with a practical problem. He had suffered a cardiac episode some years ago and was finding it difficult to now increase his health cover. Every insurer he approached either declined or imposed permanent exclusions on cardiac conditions. His existing individual policy was capped. Our alumni association had just launched a group health plan. Should he join?

I told him yes, immediately.

A week later, another friend called with what seemed like a similar question. He had a robust individual policy with a sum insured of Rs.1 crore. The alumni plan was cheaper. Should he switch?

I told him absolutely not.

Both calls, a week apart, illustrate how alumni or affinity health plans work-what ...