Are You Truly Covered by Health Insurance

Why you still need personal coverage even when your company provides it

If you’re working full-time, chances are your employer offers some form of group health insurance. It’s one of the most appreciated benefits — giving you access to medical protection, hospitalisation coverage, and sometimes even life insurance, all without paying a cent.

But here’s a truth many employees overlook: your company’s health insurance isn’t really yours. It’s provided for as long as you’re on the payroll — and once you leave, it goes away.

That means if you switch jobs, take a career break, or retire, your coverage ends the moment you clock out on your last day. For many, this realisation only comes when they actually need medical treatment — and by then, it can be too late.

So, while company insurance is a great starting point, it’s not enough on its own. Let’s explore how you can evaluate your current coverage, identify potential gaps, and build a personal insurance plan that truly protects you.

Why You Shouldn’t Rely Only on Company Health Insurance

Group insurance is designed as a collective benefit, not as comprehensive lifelong protection. Employers purchase these plans to cover employees while they’re working under the organisation. Once you leave, that coverage usually ends immediately.

Many people fall into a comfort zone thinking they’re well-protected. After all, they can see a doctor easily, and hospital bills are covered up to a limit. But here’s the catch: it’s not portable. If you resign, get retrenched, or retire, you’ll no longer have access to the same benefits.

This is why having your own hospitalisation and surgical plan is crucial. A personal plan follows you no matter where life takes you — through job transitions, freelance periods, or retirement.

In recent years, some companies have even shifted to flexi-benefit schemes, where employees are given a fixed annual amount (for example, $1,000 to $2,000 per year) to use on medical needs or personal insurance. While flexible, it also shifts the responsibility of managing adequate coverage to you.

When structured wisely, both your company’s and your personal insurance can complement each other — offering more complete and cost-effective protection.

What Company Health Insurance Typically Covers

Most employers provide a standard package that includes hospitalisation and surgical coverage. This means if you’re hospitalised or undergo day surgery, your medical bills — including ward charges, surgical fees, and doctor’s consultations — are partially or fully covered.

Beyond that, companies may also include outpatient benefits, allowing you to visit panel general practitioners (GPs) for minor illnesses. Some offer specialist coverage for referrals, and a few may even include dental and wellness benefits, such as physiotherapy or health screenings.

More generous employers extend their protection further, including alternative treatments like chiropractic care or traditional Chinese medicine (TCM). Some even include mental health consultations as part of their wellness support.

Additionally, many organisations include a group life insurance policy, which pays a lump sum to your beneficiaries in the event of your passing, or if you suffer total and permanent disability (TPD). In certain cases, critical illness coverage is included, providing a payout if you’re diagnosed with major conditions such as cancer, heart attack, or stroke.

The premiums for these group policies are almost always paid by the employer, and some companies even let employees buy additional coverage at preferential group rates — a smart and affordable way to top up protection while you’re still employed.

However, the biggest limitation remains the same: once you leave the company, all these benefits disappear.

How Much Insurance Coverage Do You Really Need?

Before reviewing what your employer provides, it helps to understand what “sufficient coverage” actually means. Here are some useful benchmarks, as recommended by the MAS Basic Financial Planning Guide:

• Life and total permanent disability (TPD): Aim for about nine times your annual income. This ensures your loved ones can maintain their lifestyle and manage key financial commitments, such as mortgage repayments or children’s education, should anything happen to you.

   

• Critical illness coverage: Ideally, four times your annual income. This amount cushions the financial impact if you’re unable to work during recovery and helps with out-of-pocket treatment expenses.

   

• Hospitalisation coverage: The amount depends on your preferred hospital class — whether you’re comfortable with government hospital B2/C wards or prefer A-class or private hospital wards.

   

Knowing these benchmarks allows you to evaluate whether your current company and personal insurance plans meet your needs — or whether there are protection gaps that need to be filled.

Reviewing Your Company Insurance

Once you understand how much coverage you should ideally have, it’s time to assess your company’s plan.

Ask your HR department for a summary of your insurance benefits and go through it carefully. Pay attention to:

• The coverage limits for hospitalisation, surgery, and outpatient care

   

• Whether pre-existing conditions are covered

   

• Any waiting periods for certain illnesses or benefits

   

• Exclusions for specific treatments, such as maternity or elective surgery

   

• Whether dependents (spouse and children) can be included

   

• Panel restrictions — do you need to visit specific clinics or hospitals?

   

This information helps you avoid surprises when you need to make a claim. Some company plans look generous at first glance but have strict sub-limits that leave you with unexpected out-of-pocket expenses.

After that, compare your company’s plan with your personal insurance. Identify overlapping areas and, more importantly, any missing coverage. This comparison will guide you in optimising your protection efficiently.

How to Make Company and Personal Insurance Work Together

With careful planning, your company insurance and personal policies can form a strong, complementary safety net. Here’s how:

1. Identify the Gaps

Company insurance may cover hospitalisation, but usually not at private hospitals or for all critical illnesses. Your personal insurance should fill these gaps and ensure continuous protection after you leave your job.

2. Maintain a Strong Base of Personal Insurance

Personal insurance ensures continuity — the same coverage, no matter where you work. It allows you to choose your preferred hospital, doctor, and treatment without worrying about losing benefits due to a career move or retirement.

3. Customise Smartly

If your employer lets you customise your insurance options, avoid duplicating what you already have. For example, if your personal Integrated Shield Plan already covers private hospitalisation, you could opt for a company plan that focuses on outpatient benefits or preventive care instead.

4. Be Strategic When Claiming

If you’re hospitalised, decide strategically which insurer to claim from first.

You can ask the hospital to obtain a Letter of Guarantee (LOG) from your company’s insurer (usually capped at around S$10,000). The hospital will then bill your company’s insurer directly and e-file the remaining balance to your personal insurer and MediSave.

Alternatively, claim from your personal insurance first, then seek reimbursement for the uncovered portion from your company’s plan. This approach helps preserve the annual limits of your personal plan, keeping premiums more stable in the long term.

Building a Smarter Protection Strategy

Relying solely on company insurance is like renting a house — it’s comfortable while you’re there, but you don’t own it. Once you move out, it’s gone.

Personal insurance, on the other hand, is your own home — one that stays with you for life, giving you peace of mind no matter what happens to your job.

Make it a habit to review both your company and personal coverage once a year, ideally when your employer renews its group benefits. Coverage terms can change without notice, and keeping your protection updated ensures you’re never caught off guard.

A good financial advisor can also help you analyse overlaps, recommend appropriate riders, and plan your medical coverage efficiently — ensuring that every dollar spent translates to real protection.