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The Gravity of Grief
The Gravity of Grief
Safeguarding Your Workforce: Group Insurance Best Practices
Jane had dedicated many years to XYZ Sdn Bhd before her unfortunate passing from cancer. At her funeral, James, the owner of XYZ, told Frank, a purpose-driven insurance advisor, about the company's unwavering support for Jane during her illness. The company had paid Jane her full salary for 5 months, even when she was bedridden, and also covered a portion of her medical bills. Frank then asked if these expenses were covered by insurance. James regretfully told Frank that because Jane had cancer, she was not eligible for group health insurance. Frank's comment shocked James: Did you know that even if Jane had a pre-existing condition, the group insurance medical plan would cover her because it has no health underwriting? You can also use group term life insurance as a salary protection plan for 24 months or more? James was silent for a while...
The components of group insurance:
1. Group Hospitalisation & Surgical Benefits (GHS) (Commonly referred to as "Group Medical Plan"):
- Provides coverage for hospitalization and surgical expenses.
- Inclusion of family members, such as a spouse and children. (optional)
- Unlimited cashless outpatient clinic treatment. (optional)
2. Group Term Life
- Provides a lump sum payout based on a predetermined sum assured.
- The coverage can be extended to include critical illness and personal accident protection (optional).
- Often utilised as a Salary Protection Scheme.
Hindsight:
Group insurance is a valuable employee benefit. It's important not to misuse these benefits by extending coverage to individuals who are not part of your company just to take advantage of the insurance. Doing so can lead to a high claims ratio and result in increased premiums upon renewal. Proper planning and advice are crucial. It's best to be assisted by a professional insurance advisor to plan this together.
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