Is Your Company-Provided Medical Insurance Coverage Enough?

Company-provided medical insurance is a medical insurance plan funded by an employer. Some people might think, “If I’m covered by my employer, why would I need to get my own medical insurance plan?” We should generally not rely only on our company-provided medical insurance. In this article, we will explain why company-provided medical insurance is good to have but shouldn’t be solely relied on.

Why company-provided medical insurance is good

Different companies have different ways to decide on their group medical insurances benefits such as the coverage, option for family coverage, and waiting period. Like individual medical insurance, it may cover your costs of treatment, surgery and hospitalisation.

Why it’s not enough

a) Employment status

Your company-provided insurance is valid as long as you are with the company. The issue is that you’ll not be covered once you’re no longer employed or retired. Applying for a medical insurance plan by then may be very expensive or not be eligible anymore. You will also no longer be covered in the event of termination. If you move to another job, it may not provide insurance or a has a downgraded insurance plan.

Employer may choose to end coverage

Company-provided insurance is not mandatory in Malaysia. Your employer may choose to discontinue the plan or reduce the coverage due to high cost of medical insurance

Limited coverage

Most company-provided insurance coverage provide limited coverage with lower annual limits compared to what you can get with individual insurance. In the event of a major hospitalisation event, your employer provided insurance may not be enough. For example, coronary bypass surgery in a private hospital in Malaysia could cost up to RM80,000.

Non-customisable

The benefits and terms & conditions of the policy are decided by the employer and the insurance company unlike individual insurance where you can customise according to your needs. For example, whether the plan will be able to provide the level of care you want when you’re hospitalised, what does it cover in pre-and-post-hospitalisation, and whether it has outpatient benefits.

What individual medical insurance should you get?

It depends on the individual. Take into consideration factors such as your income, expenses, and budget accordingly. Want a comprehensive medical plan that meets your financial protection needs? Starting from only RM5 a day, FWD Medi First has a high annual limit of up to RM5 million a year that increases by 10% every 3 years. Learn more about how our medical plan can protect your future needs here.