Optimising company and personal insurance

By Shawn Lee

If you’ve only got a minute:

Coordinating both company and personal insurance allows you to avoid paying for duplicate coverage and get full protection.
Use clear benchmarks to help you understand how much protection you need and spot any gaps between what your company provides and what you should personally have.
Customising your insurance choices, such as adjusting company plan options or upgrading personal coverage, allows you to create a smarter mix that fits your needs.

If you are an employee, chances are your employer provides some form of insurance as part of your benefits package. This is a valuable perk that offers you basic protection—often at no extra cost.

But if you also hold personal insurance policies, you might be wondering: Is there any overlap between the two? And more importantly, how can you optimise both company insurance and personal insurance to avoid paying for duplicate coverage while ensuring you are fully protected?

With some planning, both forms of insurance can work hand in hand to provide comprehensive and cost-effective protection.

Understanding what companies provide

Most employers offer a base level of company insurance to all staff. This usually includes hospitalisation and surgical coverage for inpatient stays and day surgeries, as well as some outpatient medical benefits.

Some organisations go further, covering specialist consultations, dental services, and alternative treatments such as traditional Chinese medicine (TCM), chiropractic care or physiotherapy sessions.

Basic life insurance is also common. This typically provides a lump-sum payout to your family in the event of death, and may sometimes include critical illness coverage for major conditions such as cancer or heart attack during your employment.

These benefits are typically paid for by the employer. In addition, some companies offer the option to buy supplementary coverage at group rates, which can be a cost-effective way to enhance protection while you remain with the company.

However, there’s an important catch: most company insurance is not portable. This means coverage usually ends when you leave the organisation—whether due to a job change, a career break, or retirement.

Knowing how much coverage you need

Before reviewing your company insurance, it’s helpful to understand how much protection you should ideally have.

Death and total permanent disability: A useful benchmark is coverage worth 9 times your annual income, as recommended in the MAS Basic Financial Planning Guide. This ensures your dependants can maintain their lifestyle and settle major financial obligations.
Critical illness coverage: Aim for around 4 times your annual income. This helps to offset lost income during recovery and cover out-of-pocket treatment costs.
Hospitalisation coverage: Your ideal level depends on the type of ward and hospital you prefer—whether it’s a private hospital or a government hospital (A, B1, or B2/C class wards).

Reviewing your company insurance coverage

Once you’ve assessed your needs, take a closer look at what your company insurance provides.

Request the latest policy summary from your HR department and review it carefully. Check:

The types of insurance included
Coverage amounts
Pre-existing condition coverage
Exclusions, sub-limits, and waiting periods

For example, some plans exclude maternity benefits, while others may impose waiting periods for certain conditions. Knowing these details upfront helps avoid unpleasant surprises when making claims.

Also, confirm whether dependants are covered, and take note of caps and panel requirements for outpatient or alternative therapies.

Finally, compare the scope of your company insurance with your personal insurance. Some corporate plans are broad, while others are more basic. Understanding these differences is key to spotting gaps or overlaps.

Optimising your company insurance and personal insurance

The goal is to make both forms of insurance complement each other. Here’s how:

1. Identify gaps and overlaps

Your personal insurance plays a crucial role in ensuring long-term protection—especially after you leave your employer. For core areas such as life, critical illness and hospitalisation, make sure your personal insurance provides sufficient coverage. Your company insurance should then act as additional support while you are employed.

2. Maintain strong base of personal insurance coverage

Personal insurance allows you to maintain your preferred standard of medical care and insurance coverage consistently, regardless of job changes. Company insurance alone cannot guarantee this continuity.

3. Customise coverage where possible

If your employer lets you customise your company insurance, select options that reduce duplication. For instance, if you already have a strong personal hospital plan with co-insurance features, you may opt for a company plan tier that focuses on covering out-of-pocket costs rather than duplicating inpatient benefits.

A smarter way to protect yourself

Company insurance provides valuable protection while you are employed, but it shouldn’t be your only safety net. Personal insurance ensures that coverage continues seamlessly, no matter where life takes you.

A good practice is to review both sets of insurance at least once a year, ideally when your company renews its benefits package. Coverage terms can change, and this provides a natural opportunity to ensure your company insurance and personal insurance remain well-aligned.

By understanding what your employer provides, knowing your coverage needs, and using your personal insurance strategically, you can build a robust, efficient protection plan that supports you at every stage of life.