About this article:

• Understand that while corporate insurance provides basic protection, its coverage is often limited.
• Corporate insurance may fall short in major health issues, critical illnesses, and long-term healthcare needs.
• Combining corporate and personal insurance ensures comprehensive long-term financial protection.
• Don't plan big meetings for your first day back – instead, spend that time catching up on what needs doing for the week ahead

In Singapore, many companies offer some form of insurance coverage for full-time employees. These typically include basic medical coverage such as outpatient GP, specialists, and hospitalisation.

These may sound appealing and adequate, but corporate insurance generally has its limits. It may not be a suitable long-term plan for everyone, especially if you have pre-existing chronic conditions or are at higher risk of certain conditions.

Many believe they can rely solely on corporate insurance and save money by avoiding personal insurance plans. However, this can leave them financially vulnerable in the long run. Corporate insurance may not be enough to cover significant medical expenses or long-term healthcare costs. It is also not portable — meaning it ceases once you quit a job, leaving you vulnerable for the period you are without a job.

Let’s explore why corporate insurance alone is insufficient for long-term protection.

Types of Corporate Insurance

Corporate insurance comes in various forms, with employers typically offering their employees a range of basic plans. The most common types of corporate insurance include:

• Group Term Life Insurance: Provides death and disability coverage during an employee’s time with the company. If the employee passes away or becomes permanently disabled, a lump sum is paid to the beneficiaries or the employee.
• Medical Insurance: Covers day-to-day medical expenses such as general practitioner (GP) consultations and outpatient treatments.
• Hospitalisation Insurance: Covers hospital stays, surgeries, and medical treatments related to hospitalisation.
• Personal Accident Insurance: Provides coverage for injuries or deaths resulting from accidents, whether in the workplace or outside.

While these types of corporate insurance provide basic protection, they often lack comprehensive coverage for severe health conditions and long-term needs. Also, remember that companies may only provide some of the types of insurance mentioned, not all of them.

For instance, some companies’ corporate insurance only covers hospitalisation charges and does not consider one’s family history, lifestyle, age group, or personal needs. Other companies may offer medical outpatient coverage but not under an insurance plan. Some corporate insurance requires employees who visit a doctor first to pay and then make a claim for their medical expenses, and there is often a limit to the amount that can be claimed.

Shortfalls of Relying Solely on Corporate Insurance Coverage

The downside of relying solely on corporate insurance coverage is that it may fall short and leave employees exposed to financial risk in the event of serious health issues.:

Some common shortfalls of relying solely on corporate insurance include:

• Limited coverage for major health issues
  Corporate insurance typically does not cover critical illnesses such as cancer, heart disease, or other conditions that require specialised and expensive treatments. This could drain your finances if you suddenly have to deal with long-term medical care. Even if you buy personal insurance after diagnosis, it will cost more, or some insurers will not even cover you for the condition.

• No coverage after job loss or job switch
  Corporate insurance is tied to your employment and is not portable. If you lose your job, switch jobs, or retire, you lose the insurance coverage provided by your employer. Your new employer’s corporate insurance may not be as comprehensive as your previous one. You may face a gap in your coverage without a personal insurance plan. It could mean some heavy financial costs if you are suddenly faced with a medical emergency or health concern during this period when you’re not covered. What’s more, the new corporate insurance may not be able to cover your pre-existing condition if you somehow developed one during your unemployment period.

• Non-customisable plans
  Corporate insurance is a one-size-fits-all solution and cannot be customised to one’s family history, lifestyle, age group, or personal needs. For instance, if you have pre-existing medical conditions or require coverage for dependents, corporate insurance may not meet these requirements.

Maximise Your Corporate Insurance

Corporate insurance is a good foundation for financial protection. By understanding the full scope of the coverage offered, employees can leverage their corporate insurance to complement their personal insurance plans. For example, if your corporate insurance covers basic medical needs, you can add critical illness coverage for greater financial protection against these illnesses.

The key is to maximise corporate insurance with personal insurance.

Importance of Personal Insurance

According to a ChannelnewsAsia article, many younger Singaporeans, Millennials, and Gen Z are underinsured. Many do not prioritise having insurance as part of their financial plans and would rather channel their money elsewhere.

Being underinsured extends to a wider group of adults, too, especially when it comes to critical illness. A study by the Life Insurance Association (LIA) found a critical illness protection gap of 74%, or S$579 billion, in 2022 among those aged 20 and 69.

Here’s where personal insurance can help fill the gaps in corporate insurance. Personal insurance such as Integrated Shield Plans and Personal Accident Plans, allows you to customise your plan according to your health needs and life stage. This means you can select coverage for critical illnesses, pre-existing conditions, and dependent family members.

It also ensures you are protected even if you switch jobs or are suddenly retrenched.

Think of personal insurance as an investment and complement to corporate insurance. It covers critical illnesses, specialised treatments, and long-term medical care that corporate policies often overlook.

When to Get Personal Health Insurance in Singapore

The downside of relying solely on corporate insurance coverage is that it may fall short and leave employees exposed to financial risk in the event of serious health issues.:

While it may seem like a heavy financial expense, it is better to get personal insurance when you are younger and still healthy, as it is cheaper. Buying insurance early not only helps secure coverage before any health issues arise but also allows you to lock in lower premiums while you are still young and healthy. As you age, premiums for health, life, and critical illness coverage increase, and pre-existing conditions may lead to exclusions or higher costs.

As you grow older, your needs will change, and you can re-assess the type of insurance coverage you need. You may have dependents, such as children or elderly parents, who rely on you financially. Personal insurance can provide the financial security your loved ones’ need in the event of an unexpected health emergency.

Corporate and Personal Insurance: A Balanced Approach

A balanced approach to insurance means combining corporate and personal insurance plans to provide comprehensive long-term protection.

While corporate insurance covers basic medical needs, personal insurance fills the gaps by providing more extensive protection for critical illnesses, disability, and long-term healthcare costs. This ensures that no matter what happens, you have the necessary financial protection in place.

While corporate insurance offers a good foundation for health and accident coverage, it’s often not enough for long-term financial protection. To ensure that you and your family are fully covered, supplement corporate insurance with personal insurance plans. Take the time to review your current coverage and consider adding personal health, life, and accident insurance for comprehensive protection.