What is Employee Benefits Insurance?

Companies tend to offer some form of medical coverage for hospitalisation, outpatient general practitioner, outpatient specialist practitioner, and dental for employees. These are some of the most common Employee Benefits offered. An increasingly competitive employment market means that companies are forced to distinguish themselves by catering for employee needs outside of the workplace.

These benefits convey a message about what your company values and how involved it is with its employees. It can also aid in employee retention, which is more important than ever before. It reduces the learning curve and lost time training new employees.

Why
Why should I buy Employee Benefits Insurance?
What
What does it cover?
How
How much does it cost?
Package
What types of packages are there?
Difference
What is the difference between WICA and Employee Benefits?

Do I need to have Employee Benefits Insurance?

While not mandatory, most companies in Singapore do provide some form of Employee Benefits (also known as Group Health) Insurance to their employees, as they are an essential part of the overall compensation package offered to employees.

While the state has subsidised medical insurance provided for all citizens that have a CPF account; Medishield Life, most companies have an employee population comprised of mixed skillsets and nationalities. Every employee’s individual circumstances are different, and the company’s role is to provide for them while currently employed.

For foreign workers residing in Singapore on a work permit or S-Pass, Ministry of Manpower (MOM) regulations require the employer to buy and maintain medical insurance coverage of at least $60,000 per year for them.

What does Employee Benefits Insurance cover?

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Outpatient General Practitioner:

Covers eligible expenses incurred at a General Practitioner (GP)

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Outpatient Specialist:

Covers eligible expenses incurred at specialist clinics, inclusive of diagnostic scans

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Dental:

Covers eligible dental expenses

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Personal Accident:

Covers loss of life, permanent disablement due to an accident

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Term Life:

Covers death or total permanent disability

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Maternity:

Covers delivery cost and pre & post-natal complications

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Group Critical Illness:

Covers 37 critical illnesses with lump-sum payout on diagnosis

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Preventive Care:

Covers annual health check-up and other wellbeing benefits

How much does Employee Benefits Insurance cost?

Underwriting is the process a health insurer uses to decide at what price and with what terms to offer its insurance plans, based on known or anticipated medical needs. People with pre-existing medical conditions present financial risk to the insurer because they are statistically more likely to make a claim. Health insurance is about hedging against unforeseen illness, not about providing cover for known medical conditions.

Factors that affect pricing

  • Patient's historical claims for the last 3 years
  • Any existing terminal illness (such as cancer), which represent potentially large claims
  • Age distribution: older demographics represent a higher likelihood of claims
  • Capping or exclusion of pre-existing conditions can help to bring down the premium

Group Insurance: Essential Employee Benefits for Your Team

Group insurance is a fundamental component of employee benefits, providing comprehensive coverage to employees under a single policy. It typically includes medical, hospitalisation, outpatient, and dental coverage, ensuring employees feel secure and valued.

Offering group insurance for employees demonstrates a company’s commitment to employee well-being, enhancing job satisfaction and loyalty. This not only boosts employee morale but also helps companies stand out in a competitive job market. In turn, businesses can improve retention rates and reduce the costs associated with frequent hiring and training.

SME Employee Benefits Insurance packages

For SMEs, Packaged Plans seem to be the simple go-to solution as they are convenient and do not require any health declarations. On top of that, the prices are as seen on brochures which provide transparency to the audience and a good headstart for companies who are new to this, with the common coverages usually listed in the brochure.

In the event of a high-claims year, most SMEs naturally worry about potential rising costs of their medical insurance. In lieu of that, we are glad to announce that Packaged Plans are “portfolio-rated”. This means that the insurer will not increase the premium as a sole result of your claims. Instead, the insurer looks at the entire portfolio of companies as one entity and will adjust premiums accordingly.

Plans can start with as little as 2 employees and range up to 50. For companies beyond 50 employees, please contact us for further pricing information.

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How Employee Benefits Strengthen a Business?

Providing health care benefits for employees can significantly strengthen your business. Employee benefits, such as medical and dental coverage, show your commitment to their well-being, which fosters a positive workplace culture.

Benefits also enhance employee retention, reducing turnover and training costs. Employees who feel valued are more engaged and productive, directly impacting business performance. In addition, offering competitive health care benefits helps attract top talent, giving your company an edge in the job market.

Work Injury Compensation Act (WICA) versus Employee Benefits Insurance

While there are situations where both Work Injury Compensation (WIC) Insurance and Employee Benefits Insurance can overlap, they are not substitutes for each other. Having one does not exempt your company from needing the other. Understanding the differences between the Work Injury Compensation Act (WICA) and Employee Benefits Insurance is essential for ensuring comprehensive coverage.

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Work Injury Compensation Act (WICA) is a mandatory insurance required by law in Singapore. It covers medical expenses, lost wages during the recovery period, and compensation for permanent injuries or death.It does not extend to other areas of employee health.

Employee Benefits Insurance, including group insurance for employees, offers broader coverage. It provides health care benefits for employees, covering hospitalisation, outpatient treatments, dental care, and even wellness programs. By investing in corporate medical insurance in Singapore, businesses can offer their employees comprehensive protection that addresses various health needs. Group insurance is particularly advantageous for companies, as it allows you to cover all employees under a single policy.

Common exclusions

For Hospital and Surgical, all Pre-existing Conditions, unless the Insured Member has been insured continuously for 12 months under this policy, except for Pre-existing Renal Failure and Cancer which are permanently excluded under the Policy.

Kidney dialysis and Cancer treatment.

Routine or preventative physical examinations, investigation, medical check-up, vaccinations or treatments.

Vitamins, supplements or any Traditional Chinese Medicine whether prescribed or not.

Administrative expenses and non-medical personal service and other ineligible non-medical items.

Pregnancy, childbirth, abortion, miscarriage, infertility, pre-and-post natal care.

Sickness or disease directly or indirectly arising from sexually transmitted diseases.

Congenital conditions or genetic defects including hereditary conditions.

Frequently Asked Questions

About Employee Benefits Insurance In Singapore

  • Group insurance in Singapore is a type of health insurance policy that covers a group of individuals, usually employees, under one plan. This type of insurance provides healthcare benefits for employees. This includes hospitalisation, outpatient care, and sometimes dental or wellness services. It’s a cost-effective way for employers to offer comprehensive protection for their staff, as the coverage is more affordable than individual policies. Group insurance ensures employees are taken care of.
  • It's highly recommended to get a group medical insurance policy, as it allows your business to attract top talent. Group policies also protect your employees from financial burden as medical costs tend to run high.
  • In Singapore, it is not mandatory for companies to provide health insurance for all employees. However, employers are required to provide Work Injury Compensation Act (WICA) insurance to cover work-related injuries. That said, many companies choose to offer corporate medical insurance in Singapore as part of their employee benefits package to attract and retain talent. Offering healthcare benefits such as group insurance for employees helps businesses stay competitive in the market and demonstrates a commitment to employee well-being.
  • In Singapore, mandatory employee benefits include contributions to the Central Provident Fund (CPF), protection under the Employment Act, and Work Injury Compensation Act (WICA) coverage for work-related injuries. Other benefits like annual leave, sick leave, and maternity leave are also stipulated by the law. While not required, many companies go beyond these minimum requirements by offering additional benefits like employee benefits insurance or health care packages to provide more complete protection for their employees.
  • Yes, corporate medical insurance is generally tax deductible in Singapore. Businesses can deduct premiums paid for employee healthcare benefits, such as group insurance for employees, as long as they are part of a legitimate business expense. Providing corporate medical insurance in Singapore not only helps improve employee satisfaction and well-being, but also offers tax advantages for the company.
  • In most cases, employees cannot choose their own insurance policy for group insurance plans. However, they may have the option to purchase additional coverage or opt out of the plan if they have their own insurance coverage.
  • In most cases, employee benefits insurance coverage is tied to your employment and typically ends when you leave the company. However, some insurance providers may offer the option to convert your group policy into an individual plan, allowing you to continue coverage independently. It’s important to check with your employer or insurance provider about specific options and timelines for conversion before your employment ends. Transitioning to an individual health insurance plan ensures that you maintain continuous coverage without gaps, safeguarding your well-being even after leaving your job.
  • The processing time for employee benefits insurance claims in Singapore can vary depending on the insurance provider and the specific circumstances of the claim. However, insurance providers are generally required to respond to a claim within 14 days of receiving all necessary documents and information.

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