When it comes to personal insurance and corporate insurance, a common misconception that is present is the notion that personal insurance is deemed unnecessary when working professionals are presented with the option of being insured by their corporation. As you progress with your wealth management journey, many factors tie into this decision that relies heavily on your personal needs and requirements.
Difference Between Personal Insurance and Corporate Insurance
Gaining a thorough comprehension of the corporate insurance you have with your company is vital to know if it adequately covers your needs and expectations. While company insurance is available to certain roles in the market, the onus still falls on the individual to read the fine print and ensure the coverage of their corporate insurance is analogous to their individual needs.
To steward our money and well being, it would be wise to engage in due diligence and personal responsibility. By being equipped with adequate knowledge of financial planning and wealth management, you will be able to obtain a deeper understanding of the various levels of insurance before proceeding to take the next step.
Assess the sufficiency of your corporate insurance
As you navigate through the course of your career, there will be instances where you come across a company covering basic health coverage as a mandatory practice. Although this is more frequently observed in Multi-National Corporations (MNCs), it is not uncommon within Singapore’s pool of Small and Medium Enterprises (SMEs). These employee corporate insurance packages typically fall under a segment of employee benefits under the respective company contract, some even offering reimbursement for medical expenses and dental expenses as part of their employment package.
It is vital to note that such a practice is not enforced by the Singapore Government, therefore you will not find this type of arrangement mandatory across all sectors and industries. Understanding the sufficiency of your corporate insurance requires gaining a deeper insight into how much you are covered for your health – from details like the maximum insured value to dates of the insured period.
What are the various types of personal insurance available?
When personal insurance is brought up in conversation, many people are quick to think of basic hospitalisation and death benefits. However, personal insurance in Singapore has evolved to encompass a wider range of products that cater to different needs – ranging from health and critical illness protection to personal accident cover and life insurance.
It is important that you assess your specific needs before deciding what type of personal insurance to get to be financially efficient and ensure accountability for unforeseen circumstances.
Please refer to the table below for a more concise difference between personal insurance and corporate insurance.
Personal Insurance | Corporate Insurance | |
|---|---|---|
Individual Health Conditions | For personal insurance, your health conditions take precedence when it comes to choosing the type of personal insurance you will need for yourself. Investing in personal insurance provides the insured a level of freedom and choice relative to their health needs and concerns. | Corporate insurance, on the other hand, typically only covers a pre-determined set of medical conditions and would not take into account any personal health conditions that the insured may have.
This is an extremely important factor to consider when making your decision between personal insurance or corporate insurance, as you do not want to be limited in your choices should you encounter any health issues. |
Contingency Planning | As a rule of thumb, contingency planning includes having an insurance plan that will provide for expenses related to evacuation, repatriation, loss of income and essential goods/services. It is necessary that you only purchase the type of insurance after assessing your situation through a financial consultant to effectively mitigate risks.
| Corporate insurance does not cover contingency planning. This is a key area of personal insurance that should be considered if you are working in Singapore and your company has no insurance policy to offer you. |
Retirement Planning | Retirement planning is one of the more important steps in life, and insurance products can be a part of that plan. Employing an insurance policy gives individuals the ability to have a steady income flow even after they retire. In addition, age-related health conditions are taken into account by insurers when offering retirement-focused personal insurance policies, which is what makes it tailored for the insured. | Retirement planning with corporate insurance is more limited than if you were to invest in personal insurance. This is because most corporate insurance policies do not offer retirement benefits, so it is important to consider other options if this is important to you as you traverse down your career path.
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Job Changing | Job changing is an exciting time for many, but it can also be a daunting one. With the proper insurance in place, you can have peace of mind knowing that your finances will not take a hit if something unexpected happens during the job transition process. Personal insurance policies offer coverage for loss of income and other unforeseen events which may occur. | Corporate insurance policies are less job-change friendly than personal insurance. This is because most personal insurance companies offer cover for loss of income and other unforeseen events which may occur during the job transition process. For many working individuals, job changing can be a critical trigger point when they decide whether to sign on to personal insurance policies or not. |
Review your insurance needs and expectations today!
A personal insurance policy is a great way to financially protect yourself and your loved ones. If you’re working in Singapore, it’s important to review your insurance needs on an annual basis and make sure that you have the coverage you need in case of an emergency.
If you’re not sure where to start, reach out and schedule an appointment at your convenience with Clara to further understand your insurance needs!
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