Most companies provide their employees with health insurance under group insurance, but how does it compare to a personal health insurance plan? While both individual and group health insurance cover similar things such as an illness, hospitalisation or an accident, the amount of coverage and its benefits may be different.
However, depending solely on the insurance policy provided by your company may not be sufficient, especially if you think about the long-term. Most corporate health insurance policies offer only basic protection, so here’s why just relying on company health insurance isn’t enough.
1. Coverage limits
As companies have to cater to a group of employees, chances are, the insurance policy they’re subscribed to may not be the most comprehensive. Group insurance often focuses on offering the best policy for a large number of people rather than an individual. This typically means you’re only insured for a certain amount and any medical expenses beyond that will have to come out of your own pocket.
2. No control over your policy
The health insurance provided by your company is often a standard insurance policy that does not cater to your age, medical history, lifestyle, family structure, and more. An ideal health insurance plan should always be personalised to your needs, taking into account your background and lifestyle.
With an own policy that protects you from medical bills, you will have the freedom to customize your plan, from the coverage amount, illnesses covered, the number of dependents, and more. A personalised plan will offer the best protection for you and can be adjusted as you transition through life.
3. Less flexibility with add-ons & benefits
For those with dependents such as a spouse, child, or elderly parents to look after, a basic health insurance plan most likely does not offer enough protection. To avoid future financial burdens, you must have a comprehensive health insurance policy in place. Not to mention, some companies only extend the health insurance to a fixed number of dependents, but with an individual insurance plan, you’ll be able to decide on a policy that works in your favour.
4. It's not yours
Your company health insurance is not yours. This means that if you choose to leave your company or lose your job, you will no longer be insured. Your next company’s insurance policy may not be as good as your previous company’s, or they might not even provide insurance at all! By purchasing your own insurance policy, you’re taking matters into your hands to improve your financial security. Additionally, the younger you are when you purchase insurance, the more affordable the premium.
When thinking of your financial future, consider whether your current health insurance plan is sufficient. Although you may be able to save money in the short-term by relying on your company’s health insurance, it’s best to supplement that with an individual insurance plan to avoid unexpected financial burdens down the road.
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