I am a young working adult looking to kickstart my insurance. Should I top up my company insurance or obtain a Personal Accident and Critical Illness plan for myself? - Seedly
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Anonymous

Asked 1w ago

I am a young working adult looking to kickstart my insurance. Should I top up my company insurance or obtain a Personal Accident and Critical Illness plan for myself?

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I would settle your existing coverage first with the following guidelines:

https://www.aaronleow.com/insurance-requirements-calculator

Get your ISP hospitalization plan first. That should be the first policy you get with your budget.

The critical illness plan will take priority over PA. You should consider Death and Disability as well. PA plans will come in as a supplement, but the core should be the three major insurance coverages, including early-stage critical illness.

Core plans should not be structured from your company's insurance. A personal insurance portfolio will stay within your control.​​​

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Hi Anon,

It's definitely better to have your own personal insurance, because the company (group) insurance will only provide you coverage as long as you are still with the company. However group insurance usually have certain limitations, and also the yearly sum assured for staff is usually not very high. Based on the trend usually the coverage is from 7 - 15k a year in regards to hospitalisation reimbursement. Also, there might not be any term insurance coverage as well.

Having personal insurance will ensure that you have a more holistic coverage, where you can be assured that you are covered for every facet of life. Things to look at for your personal insurance are the following; order of insurance is based on my personal opinion

  1. Hospitalisation Insurance, this is also known as Integrated Shield Plan. This is to ensure that you can be reimbursed up to 95% of the hospital bills in the event of hospitalisation.

  2. Personal Accident Insurance. This is to provide coverage in the event of accidents. This usually allows you to get reimbursed for visitations to GPs or Medical Services due to accidents. Dependent on insurer, they will also cover Hand, Foot, Mouth and even Dengue Fever as well.

  3. Whole Life/ Term Insurance. This is to ensure you have full coverage against Death, Total Permanent Disability, Critical Illness and Early Stage Critical Illness for your life. The main difference is that Term Insurance covers only for a time period specified by you upon purchase. Whole Life covers you for the whole of your life, and usually there is a limited pay option, where you can use how long you would like to pay for the policy.

Do reach out if you have any questions, would be glad to advise :)

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Hi Anon,

It's great that you are kickstarting your insurance early. You will be saving a lot of money down the road.

There are pros and cons to company insurance:

Pros: It is usually cheaper than individual coverage, there may be free benefits, and there is lesser medical underwriting.

Cons: You have little or no control over the coverage. More importantly, you may lose the coverage in the future since you do not own it you will lose the coverage if you are not working at the company anymore, or the company could simply cease the coverage anytime.

It is good to that your company is proving insurance for you, but it is important to have your own individual protection so that you will be safe regardless of what the future brings.

Hope this helps you to make your decision :)

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Generally, I will suggest for most consumers to get their own insurance policies. This is because the company insurance programme is usually not portable. Consequently, when either party switch company, you are often on the losing end.

What's more, it is probably easier to submit a claim through your agent too.

I share quality content on estate planning and financial planning here.

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