Group insurance is when a group of people is gathered for a common reason and hence eligible to buy insurance for all of them at a bulk discount and without major health underwriting.
Group insurance can be offered to people gathered for
- Work purposes (Example: staff of Singtel or Starhub)
- Sporting Association (Example: Bishan Badminton Group)
- Leisure groups (Example: Punggol KTV Singing Gatherings)
- Associations (Lawyers Association of Singapore, Grab Drivers Club etc)
- Or other social clubs/groups (Example: Boardgame discussion group)
What group insurance is available for me in Singapore?
You can check with your HR Department or your boss to see what group benefits does the company offer. Or if you are shopping for your company for the best group insurance in Singapore, you should know the usual package plans for group insurance are
- Group Life
- Group Medical Hospitalisation
- Group Outpatient GP Visits
- Group Critical Illness
- Group Accident
- Group Dental Care
Advantages of Group Insurance
As you can guess, you cannot just purchase group insurance on your own, you have to belong to a group of people and buy together. Group insurance has several advantages
- Cheaper compared to individual insurance plans
- No or minor health underwriting when joining the scheme
- Coverage even when you have pre-existing conditions
The savings of the same coverage for group compared to individual private insurance can be hefty. In big bundle insurance, you are probably saving more than half of the costs. This is because group allows insurers to offer bulk discounts as they can get volume of business, less commission and administrative fees to manage the insurance plan.
As each participant join the group insurance for a non-medical reason (such as sports, or for work), insurance companies know that you are there for a legitimate reason, hence they can include coverage with little or no health underwriting too.
Disadvantages of Group Insurance
- Your coverage ends when you leave the group
- Unable to add extra premiums or features even if you like more
The biggest disadvantage of group insurance is non-portable. You cannot move your insurance cover with you when you quit and move jobs. You will be considered a completely new applicant in the new company’s group insurance, and that company’s existing insurance coverage may be nil, lesser than desired, or does not cover you due to new status or not covering pre-existing status.
I only have a wonderful client who hates her job, unfortunately, she is unable to quit and get a better happier job even with lower pay because she has a terrible medical condition that can be very expensive to treat.
What should I do with my company group insurance?
You should get information on your group insurance and concurrently get a basic private medical insurance so that you enjoy portability with your private insurance plans and enjoy extra benefits with your group insurance plans.
What is the minimum size for group insurance?
3 would be sufficient. Ideally you should have 5 in total to qualify for group insurance, but many insurers can allow you to insert 2 “dummy names”, so that a minimum of 3 person will be able to purchase group insurance.
The 2 dummy names allow you to buy group insurance of minimum size of 5 in Singapore. Even though you are paying for these 2 dummies, the overall costs are still cheaper than buying individual private insurance.
Can I include my spouse or children in group insurance even if they are not in the group?
YES. Most group insurers do offer this with added premiums.
If you want a competitive quote for your company, do speak with us soon on getting a good coverage for your business.