4 Reasons Why You Should NOT Rely Solely On Your Company Insurance

Why do I need personal insurance when my company provides one?

Employee benefits such as number of Days of Leave, Bonuses, AWS, Bonus Credits and Medical Benefits are one of the many factors people consider when looking out for a Job. It is not as simple as ‘you work for a salary’ in today’s context. Companies use these for recruitment and talent management purposes. But are these benefits enough?

Here are some of the reasons that would make you think twice about whether your Employer-Provided Medical Insurance coverage is enough?

1. Not Personalized

One important factor often missed out is companies do provide Medical and Protection insurances. Similar to those mentioned above, companies provide insurances for some various reasons;

  • Country’s regulations

  • To avoid holding liability in the event of claims for bills or compensation for mishap

  • Attracting talents

  • Being a ‘Good Employer’

So back to the topic, the question is, since your company provides all these above benefits in terms of monetary or even insurances, why do you still need to spend money on your personal insurances.

Comparing to all other benefits that a company provides, such as bonuses which you may use the extra papers with dollars sign for self-pampering purchases (any impression of you telling yourself that it had been a year of hard work, and it is time to pamper yourself for a Chanel or Givenchy), it seems like insurance is something that you do not enjoy the benefit immediately. You must be thinking that this additional point further justify why you do not need a personal insurance.

In fact, what are the specific benefits provided from a company insurance;

  • Paying your outpatient BILLS in the event of flu, cold or even days when you do not feeling like working including cleaning your beloved teeth

  • Paying the larger inpatient BILLS in the event of hospitalization

  • Paying the BILLS for illnesses when you need to consult a specialist

  • Giving you a sum of CASH in the event of accident happened at work

  • Giving your family a sum of CASH in the event of mishap such as Death

  • Giving you a sum of CASH in the event of illnesses when you are unable to work for a period of time

It definitely sounds attractive or even good enough, even I am having a second thought while writing this article. However coming back to reality, how many of you truly understand what lies underneath, or any terms and conditions you have to fulfil, or after working many years for this company, be interested to go to your HR department to get a copy of the full coverage details of your Company Insurance.

2. No Choice of Coverage

Below are few considerations you may bear in mind;

  • Which ward are you covered up to for your inpatient claims, is it full or partial coverage?

  • What are the limits depending on complexity of treatment?

  • Are there limits for my outpatient claims per visit?

  • What is the process for claims, be it inpatient or even visiting a specialist?

  • Do you have the time to manage all these, running through and back from your work desk to your HR department?

Till here, how many of you are able to answer everything? A minority I supposed.

To add on,

  • How much will they pay my family in the event of death occurs? Is it enough?

  • How much will they pay me in the event of a critical illness? Will they still keep me?

  • Must all these happened during work, because of work, or include even when an accident happened while you are snow skiing in New Zealand?

  • Can you bring this protection along when you job hop?

  • Is it compulsory that a company have to provide insurance as long as you work for them?

  • What happened after they pay you after you got an illness? Are you still covered?

  • Can you transfer this to your own name and pay the premium yourself when you retire?

  • How long is the process of payout? Who do you look for? Insurer or HR?

The list will goes on and on but I will stop here. Now, how many of you can even answer yourself half out of the above questions from the 2 segments?

As mentioned from the name itself ‘Employee Benefits’, which shows that this is not compulsory, a company can choose to stop providing this anytime apart from basic ones which are from regulations.

3. No Control Over Policy terms

Company is a profit organization, if they have an offer which quote a cheaper premium for their renewal, will they switch insurer? Yes, they will.

Company can purchase customized group insurance which are tailored made, which means they can cover people who are earning a higher income with a higher coverage with more benefits, so this answer to some of the above questions of ‘how much and what is the limits’. Will a company covers everyone in the company with the same amount? Very unlikely. So which level or position are you holding within the company now?

You are unwell now, unable to handle all these, regardless of a payout or claims, most likely your family will not know what to do, your HR may be too busy to handle it for you immediately, and I believed you happened to see news regarding families and companies going to court due to dispute. The dollar paper is that powerful that even families can turn foes.

4. Losing Insurability

When you change company or have a payout from existing company which switch insurer, will the new insurer covers your existing conditions? Very unlikely. By then, even you wish to purchase a personal one, you are unable to. That is the reality.

Do you work for your whole life, till 75 years old? No. Will you be hospitalize or even strike with a critical illnesses at 75 years old? Yes you may.

Of the above, do you think it is better to have a personal one or a company one?

It is often said or encouraged to be self-dependent, we get a decent job to earn money for expenses, learn investment strategies to grow our money, do our dishes and laundry ourselves when we are old enough, be responsible for our own actions be it good or bad in terms of health, family, career and life.

However, when it comes to this very important aspect of the discussion, which we or our families will need it when it is needed most, why are some choosing to be dependent on others or leaving it uncertainties?

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