We all know that one person in the family or within individual social circles that for some odd reason best known to themselves; just does not believe in term life insurance.
One may have many reasons why they oppose having insurance, but the most common is the belief that mandatory employee medical coverage suffices.
Today, we uncloak the veil that keeps hidden the reality surrounding employer provided insurance versus buying your own – and reveal reasons why you should not solely depend on the former.
Limited Coverage and Inflexible Terms
In all fairness, the range of employee medical insurance is vastly subjective as its coverage possibilities differ from organisation to organisation.
Some companies offer better benefits whilst some other nurse only the basic needs of an employee.
Whatever the organisation decides, you’re stuck with whether or not it’s enough to serve your medical needs.
Assuming you were diagnosed with chronic kidney disease which requires you to undergo dialysis treatment of up to four times a week. Mind you, these treatments don’t cost a red note or two – they’re about RM250 – RM300 each visit.
This adds up to about RM1,000 – RM1,200 per week; taking your monthly tally to about RM4,000 – RM4,800. Mathematically, you would require an employee policy with a coverage of up to RM60,000 per year to make it by the skin of your teeth. This also depends on whether or not the company policy covers outpatient dialysis treatment!
What if further unfortunate events befall you, forcing you to be admitted – would the employee insurance be able to cover hospitalisation and medical costs on top of your already blinking employee coverage?
Having a medical card or Takaful medical card that can be designed to cover all you need at a threshold that is acceptable for any of your ailments. Even if you don’t use it and opt to use your employer provided coverage, you can still keep your own policy as a buffer should you need extra funds.
Being able to tailor make your own policy also helps you to add on extras for your family. If you need coverage for your spouse and children – a personal policy will allow you to add or remove riders as and when necessary.
The header may be misleading, but bear this in mind – when you walk out on the company, you walk out on everything else that comes with it, including your employee insurance.
What does that leave you with? A very big problem. Employee insurance only goes as far as the list of names on payroll and you now equal a person who rock climbs without a safety harness, risking everything from a mere splinter to a very painful fall.
Some have gone unemployed for months before they get called up for a job, while others jump on board another ship immediately, but it certainly does not write off any possibility of unfortunate events between ship jumping.
Should an unexpected misfortune happen to you during this employment down time, you risk depleting your savings account and worse, rubbing the burden off on friends and family around you.
Having a back up plan is great – a back up plan that sticks with you on the other hand, has value beyond the measure of any wealth. Getting the best medical card in Malaysia for yourself protects you through any circumstance life flings at you, but employee insurance only goes as far as your letter of offer.
Zero Future Savings
What’s better than being insured for a reasonable monthly commitment? Getting to collect the pot of gold at the end of the tunnel of course!
Along with your medical coverage; why not opt to have term life insurance added on or as an additional policy to your medical card? Take advantage of the rider options that come along with your medical insurance plan to add on life insurance or even investment linked insurance if the idea appeals to you.
You cannot negotiate group insurance plans with your employer but you can if you’ve taken out a policy of your own.
With investment-linked life insurance, you can look forward to swelling that retirement fund of yours or opt to inject the cash into more family driven commitments like setting up a college fund or further investment.
We’re not denying the benefits of employee insurance – in fact, having it increases the odds of you getting a good policy of your own if you apply. However, it is important to always have plan B. While you’re at it – familiarise yourself with your employee cover so you know just how much coverage you have. This will help you decide how much to take on you’re own.
Whats even more important is that we come to terms with reality and realise that loved ones – friends and family will be sucked into the dragnet of unfortunate events if we are not careful. Always better being safe than sorry.
If you’re unsure which product is for you; check out our comparison pages for both medical insurance in Malaysia and individual or group term life insurance. There’s bound to be something suitable and you can then tailor the details further with your agent.