Protecting What You Have

Lesson 10 of 30 2 min read

Why your employer's cover isn't enough

Key idea

Group health cover from your job is a genuine benefit, but leaning on it alone leaves a gap that appears at the worst possible moment.

Many salaried people assume their employer's group health policy has them covered, and skip buying their own. It is a useful benefit, but it has three weaknesses that a personal policy does not.

Where group cover falls short

Employer group cover

  • Free or cheap while employed
  • Often covers family too
  • Usually no waiting periods
  • But: tied entirely to the job

Its blind spots

  • Ends the day you leave or lose the job
  • Sum insured is often modest
  • Employer can change or cut it
  • No cover between jobs, or after retiring

The gap that bites

The problem shows up exactly when you are most exposed: a job loss, a switch with a gap month, or retirement, often at an age when buying fresh cover is costlier and pre-existing conditions have appeared. The time to hold a personal policy is before you need it, while you are young and healthy.

Treat employer cover as a bonus on top, not your foundation. A personal policy you own and control travels with you across every job change and into retirement.

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