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Is Group Insurance Sufficient?



Group Insurance are life insurance that are bought by employers to protect their employees as a form of employee benefit. How it works is that no medical underwriting is required and you could be automatically covered the moment you join the company (after probation period). Every company operates differently so this might not be the same process for you as it is for others.


Most people put off insurance coverage till they are older because they feel they are sufficiently covered through work. The best part about it is that it’s free, or at least, they only have to pay a small sum for it. Now, that’s a great employee benefit right there don’t you think?


However, you may find yourself under covered and underinsured should you leave the company since the group insurance protection only covers you during your tenure with the company. If you are the sole breadwinner of the house and something unfortunate happens to you during your period of unemployment, your loved ones might suffer a blow both emotionally and financially.


Now, do you still think you are sufficiently and properly covered?


“But how much coverage do I really need?”


If you have financial dependants to support, be it your children or your parents, you will need as much coverage as possible. Go clarify with your company to check how much you are covered under the group insurance and determine if you are underinsured. Fact is, you probably are.


Now, here comes the tricky part.


”What if I’m no longer with that company?”


Given the current state of the economy, ‘iron rice bowl’ isn’t really a term we can safely use anymore. Adding on to this is the fact that this little red dot is easily succumbed to overseas business or political shifts which means things are constantly changing. Be it retrenchment or retirement, group insurance are often dependant on your employment with the company and the moment you leave, so does your coverage.


This inflexibility could come at a huge cost to you and your family should tragedy strikes one day, which is why you should ensure that you understand what you are getting out of the group insurance both during and after your stint with the company.


“So what’s so good about purchasing another life insurance?”


Safety net. Unless you are willing to bet your family’s financial wellbeing solely on your group insurance coverage, then I suggest you get another life insurance to be adequately covered and protected from the unexpected. After all, your life insurance serves as their life buoy.


Group insurance may be good, but depending solely on it might not be the best for you. Life is a whirlwind, you never know when you might change career, get retrenched or retire. With an additional coverage outside of work, you can safely weather out these factors without jeopardising your most important asset: your family.

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