Employee Benefits: Types of Medical Insurance Coverages
Employee benefits include various types of non-wage compensation provided to employees in addition to their normal wages or salaries. The purpose of employee benefits is to increase the economic security of staff members, and is one component of reward management.
Whilst not mandatory in Singapore, most organisations have some form of employee benefits insurance program in place. This is because many organisations recognise its importance. With the rising medical inflation, health and medical expenses are now one of the top concerns of employees. Having a good employee benefits insurance package helps to improve not just talent acquisition, but also retention.
Now let us look at the full suite of benefits available, and how common they are among organisations in Singapore.
Basic Coverage |
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Inpatient/Hospitalisation and Surgical The is the most basic and common coverage that companies will start with. In fact, often, you will not be able to purchase any of the other coverage if you do not have this in place. It covers for hospitalisation and surgical expenses.
What’s common: Private hospital |
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Outpatient – General Practitioner Outpatient General Practitioner is often taken up with inpatient coverage. It covers eligible expenses incurred at a general practitioner, polyclinic or Accident & Emergency department of any hospital in Singapore.
What’s common: Panel clinic with no co-payment |
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Outpatient – Specialist Gaining popularity in recent years, Outpatient Specialist covers the reimbursement of eligible expenses incurred at specialist clinics, including diagnostic scans, X-ray and laboratory tests referred by a general practitioner. Often, it also covers physiotherapy/chiropractic treatments (referred by physician) and Traditional Chinese Medicine (TCM).
What’s common: Annual limit $1,000 |
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Term Life Covering death and total & permanent disability, this is a common employee benefit designed to offer financial benefit to the insured’s nominee, if they die whilst being a part of the organisation.
What’s common: 24 times monthly wages (closest rounded equivalent, ie, $100,000) |
Common Add-on Coverage |
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Dental Not traditionally seen as a “must-have”, it is slowly gaining acceptance as part of the basic coverage as employers seek to differentiate their overall package to employees. It reimburses eligible dental expenses incurred at a dental clinic.
What’s common: Annual limit $500 with 10% co-payment |
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Personal Accident This is more common for companies with employees involved in manual labour, with a higher occurrence of accidents. It covers the loss of life, permanent disablement, or dismemberment due to an accident. A lump sum would be paid out.
What’s common: 24 times monthly wages (closest rounded equivalent, ie, $100,000) |
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Critical Illness Protects the employee in the event of a future major illness diagnosis, where a lump sum is paid out on diagnosis of listed illnesses. This type of plan supplements existing health insurance coverage with extra funds that meet the demands that come with critical illness health conditions.
What’s common: 24 times monthly wages (closest rounded equivalent, ie, $100,000) |
The path to protecting your employees’ welfare, and increasing organisational productivity.
It doesn’t matter if you are a MNC or an SME, there is a plan for everyone. With more than 10 insurers offering employee benefits insurance in Singapore, there is a solution even for the smallest of teams.
For SMEs, there are multiple modular plans that allow you to mix & match the coverage that is suitable for your company’s current growth stage. Grown much bigger within the year? No worries, just make changes to your modular plan during the yearly review with your broker.
Customise and compare plans on eazy’s Employee Benefits insurance aggregator. Alternatively, find more details on employee benefits insurance here.
Get insured with the right help.
Having an expert on your side to help you pick the right insurance plan and find the best price can be a big help. If you need help finding the right insurance coverage, consider working with an experienced broker like eazy. Our team can advise you on various insurance plans, including motor, health, corporate, lifestyle, and marine coverage. Speak to us today to get professional advice tailored to your firm’s needs.
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