Should I Buy My Life Insurance Through Work?
Many employers in Singapore will offer basic life insurance to their employees as part of the overall employee benefits package. This is particularly the case for expats working here in Singapore. The life insurance usually equates to a multiple of the annual salary, usually between 2 and 4 times.
The reality is that generally this isn’t enough to financially survive in Singapore if you or your spouse become critically ill (or worse, die) and require ongoing medical assistance or repatriation.
Employers may offer you the option buy more, and here we discuss the pros and cons of buying life insurance through your work.
Disadvantages of buying life insurance through work
Life insurance through your employer should not be the only cover you have in place. If you were to lose your job, or move elsewhere, this cover would be lost. Even if a new employer offered life insurance, there may be a gap in cover as you move between jobs.
It’s also important to know that buying independent insurance later, in light of losing employer cover, is likely to cost more given your age would have increased and you may have developed conditions that increase the premium as you get older. Taking out cover separately, at the earliest opportunity, helps to eliminate this potential problem and your employer life insurance can be seen as a bonus, rather than relied upon.
Benefits of Buying Your Life Insurance Through Your Job
If you have a pre-existing medical condition such as high blood pressure, it may be more difficult to qualify for an individual life insurance policy. If this is the case, you may want to take out as much insurance through your work scheme if you do qualify for it.
This is not the best solution given you will lose this coverage when you change jobs, as mentioned above, although it is better to have some coverage than none at all.
If you are single and have no dependents, you may also find that the level of cover offered through your group scheme to be adequate, although separate cover is going to cost you more should you need it further down the line, as the premiums rise as you get older.
Now what?
For no-nonsense advice on the best Life Insurance plan for you, click here to connect with the award-winning team at Expat Insurance.
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