Another call from a client today—unsure, confused, and looking for guidance. This is a scenario I encounter frequently, so it’s worth addressing here.
The Question: “My company has offered me a place on their health insurance scheme. It seems like a great deal—should I take it?”
At first glance, a group scheme may seem like an attractive option. The company is covering some or all of the costs, and the premiums might appear lower than what you are currently paying for your individual plan. However, before making the switch, you need to consider the long-term implications.
Key Considerations Before You Join a Group Scheme
1. Will Your Medical History Be Continued?
One of the most crucial aspects of any health insurance policy is how your medical history is treated. If you switch to a group scheme, will your existing conditions be covered in the future? If you develop a condition while under the group policy, will you still be covered if you leave the company and need to get individual insurance again?
2. Annual Premium Increases
Group schemes often look attractive in the short term, but what happens in the long run? Many people assume that their premiums will remain low, but this is not always the case. Annual premium increases can occur, and if your employer decides to change providers, your terms may shift unexpectedly.
3. Coverage Differences – Are You Losing Benefits?
It is essential to compare the coverage details of your current plan versus the group plan. Are there exclusions? Are pre-existing conditions covered? Are there differences in hospital networks, specialist access, or policy terms? Often, a group policy is designed to cater to a broad workforce rather than being tailored to individual needs.
4. Lack of Personalised Advice
Most company schemes are managed by HR professionals, who may not have in-depth knowledge of the policy details. They are not independent insurance brokers, and their role is to administer benefits rather than provide bespoke financial advice. This can result in employees making decisions without fully understanding the consequences.
5. What Happens If You Leave Your Job?
One of the biggest pitfalls of company schemes is what happens when you leave. Whether you move to another job, become self-employed, or retire, your health insurance could be significantly impacted. Many employees do not realise that when they leave, their policy does not automatically transfer, and switching back to an individual policy can be costly. You may face underwriting again, meaning new medical conditions developed while under the group scheme could be excluded from future cover. Additionally, if you are older or have had claims, your new premium could be significantly higher than if you had stayed on your individual plan.
Final Thoughts – Stay in Control
While a company health insurance scheme might seem like a great deal at the outset, it is vital to think ahead. If you value continuity, control, and certainty over your medical cover, sticking with your individual policy could be the better choice in the long run.
In this instance, my client took the time to review their options carefully and decided to keep their existing plan. By doing so, they ensured they remained in control of their healthcare, with no nasty surprises down the line.
Before making any decisions, always speak to an independent specialist who can provide tailored advice based on your unique situation. What looks like a bargain today could cost you significantly in the future.
Comentarios