Why you should never rely on your company's group coverage?

Many people told me that they are covered by their employer. Thus they said that they don't need to buy insurance anymore. Even their family members are covered too they said. So nobody ever needs to buy insurance.

Is this statement true? I don't think so.

Let me tell you the good and bad things about company insurance.

The good thing:
1. It is usually free, given by the company.

The bad things:
1. It has a low coverage on the life coverage (usually covers only 2 years of your income).

2. It has a low coverage on the medical coverage (usually about $10,000).

3. It is not portable, meaning once you quit the company you cannot continue the coverage, even if you want to pay it on your own.

4. You can lose the coverage anytime. E.g. If you resign from the company, if the company sack you, if the company closed, etc.

5. It usually only covers your children until they are age 21. After that, no more coverage.

6. Worst of all is if you wait till you resign from the company to get your own insurance, you will be much older and your health may not be good anymore. You may not be able to buy insurance anymore. So you will be left with no coverage once you stop working. Not only that, even if you can buy, it will be expensive because of your age.


So now you know. Trust me, getting your own personal insurance is the best way. Just consider your company's coverage as a bonus. Don't make the same mistake as what many other people do.

Tell me, you will not work in a company until you die right?

Cheers! Have a great day.