
#1 Your coverage is tied to the company and your term there
With coverage from an employee insurance benefit tied to the company and your tenure there, this is non-transferrable and will cease to exist when you leave the company.
Additionally, if you are considering migrating or relocating to another country, do note that your company’s insurance is not portable. For health coverage that can be brought along to other countries, consider international health plans.
Promotion: Enjoy 21% off your FWD International Health plan with promo code "IFAST". Purchase can be made on FWD's website.
(See "3 Reasons An International Health Plan Is For You")
#2 Your coverage ceases the moment you retire
If you intend to work until you retire at your current company, you are still at risk of having an insurance gap in your 60s if you rely solely on corporate insurance. This is because you will eventually lose your employee insurance benefit when you retire. With insurance premiums increasing with age, you could be at risk of being uninsurable or have higher premiums due to pre-existing health conditions should you decide to purchase insurance at an older age.
With the likelihood of illnesses and accidents increasing with age, the importance of having proper health coverage becomes even more prominent. While Singaporeans and Permanent Residents (PRs) have MediShield Life for basic health insurance, do note that MediShield Life only provides basic health coverage. For more comprehensive health coverage, you may want to consider integrated shield plans and riders.
(See "All About MediShield Life And How It Affects You")
Health, Life and COVID-19 Coverage. Simple and affordable.
#3 You lose coverage if you are retrenched
You may have intended to retire at your current company or perhaps think that you can rely on various employee insurance benefits during your working years. However, a change of jobs and retirement are not the only factors that could take away your employee insurance benefit.
With the ongoing Covid-19 pandemic causing rising unemployment rates, one of the key takeaways we should have is to not be overly reliant on corporate insurance. With an employee insurance benefit tied to your term at your workplace, losing your job would also result in you losing your coverage. Therefore, if you have been using your corporate insurance as your only coverage, you would then be at risk of being uninsured.
(See "3 Reasons To Not Get Basic Critical Illness Insurance")
#4 You are at the mercy of the policy owner
Your employee insurance benefit is likely to be a group policy. Therefore, with your company as the policy owner you would not be able to influence the type of coverage and/or amount of coverage in your policy. With no control over the master plan of your employee insurance benefit, this means that you are at the mercy of your company should they decide to change the terms of coverage or stop providing insurance as an employee benefit. You would also not have the option to enhance any coverage components that you find insufficient and may be stuck with coverage that is less than ideal.
(See "Is Your MINDEF Group Insurance Really The Cheapest?")
Types of coverage to consider
Coverage |
Scope of coverage |
|
1. |
Term insurance |
Basic term insurance covers for death and total permanent disability (TPD) with the option to add on riders to enhance your coverage |
2. |
Health insurance |
Covers for inpatient expenses and selected outpatient treatments |
3. |
Personal Accident insurance |
Covers for accidental injuries, illnesses and death. Some plans includes coverage for specified infectious diseases (e.g. COVID-19, dengue fever, Hand Foot Mouth Disease, SARS, H1N1, Avian flu, etc.) |
4. |
Critical Illness or Cancer insurance |
Covers for a list of specified critical illnesses or full range of cancer. |
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Information is accurate as of 7 September 2020.
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Etiqa Insurance, Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
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