Why would I need other insurance other than my company health insurance if it does cover to a certain extent?
Important milestones in your life may change life’s priorities. Example, when you get a house, you will worry about the mortgage and what happens if you fall ill or unexpected death happens. It is a bigger responsibility and your company insurance may cover for death or critical illness, but it may not be enough to cover for your mortgage.
Company insurance do not provide for Early Critical Illness which covers early stages of critical illnesses. This is useful to people who are concerned about alternative treatments and income replacement while recovering from illnesses that they will most likely to recuperate from.
It is important to review your Company Insurance and see if it matches your personal expectations of coverage and if there are any gaps that you will need to close.
Changing of jobs
What happens when you change jobs? Will your previous company’s insurance be portable to the new company? These are the rather common questions that salaried workers ask me.
If your company is under one of MOM’s Portable medical benefits, then yes, you are covered with limitations, example – the Transferable Medical Insurance Scheme which is a group insurance that has inpatient coverage up to a maximum period of 12 months when an employee leaves his employment. It is important to understand how these scheme works and how portable they are as they may have limitations and may not be sufficient for your personal expectations of being adequately covered.
Unfortunately, company insurance generally only covers you during the time you are employed with them and once you leave your company, you will lose your coverage. It will be good to acknowledge that company insurance is an Employee Benefit and that it is possible that your employer can cancel this benefit anytime. Lastly, when you change jobs, your future company’s insurance may not be as comprehensive as your previous company, or worst, they may not have company insurance. These are real concerns that can happen, and you must always plan ahead and not be caught in a situation like this.
Planning for Retirement
We all know that as we age, our body will need more repairs and we will meet with more health issues. It is important that we have sufficient medical coverage, long term care and retirement planning to take care of ourselves. We do not want to become our caregiver’s liability.
We need to understand that company insurance is unlikely to cover you after retirement, so what happens when you retire? I believe most of us do have money set aside for medical fees in our retirement funds, but you will not want to use all your retirement funds to solely pay for medical expenses. We worked our whole life to enjoy this retirement, and it is important that we plan against the risks that can happen.
Due to age and health, you may meet with obstacles when trying to get a decent coverage. Always remember, you are only insurable when you are of good health, and it’s a reality that our health would decline as we grow older.