Is Company Insurance Enough for Employees?

Good companies usually have a protection system for their employees, at the very least health coverage in the form of health insurance or life protection in the form of life insurance. Especially now, when government regulations require companies to join the BPJS Kesehatan program. Some companies even provide additional insurance, or corporate insurance from private insurance companies, for their employees.

If this additional insurance still feels insufficient, there is no harm in starting to look at extra insurance for your own protection. There are at least two life insurance products you should consider: health insurance and life insurance. What should you think about before taking out additional insurance? Read the following overview!

What Is a Group Insurance Policy?

A group insurance policy is an insurance policy issued by an organization that purchases coverage or protection for a particular group or collective. In a group policy, one contract covers more than one individual or family.

Employees are not the ones who create and are entitled to receive a copy of the master contract; the company holds that position. Even so, employees will later be given an "insurance certificate" from the company, which serves as the policyholder.

Usually, group insurance is a welfare program for employees initiated by the company. Group insurance programs are not only health insurance, but also life insurance or pension programs.

Risk Identification and Selection for Company or Employee Insurance Differs from Individual Insurance

The risk identification and selection process for group insurance differs from that for individuals. As is known in this process, various factors that affect employees' health risks are reviewed. For example, for employee health insurance, the insurance company will assess the risk of a group of employees.

Several factors that can affect the estimated morbidity rate of a group of employees include:

• The nature of the industry in which the prospective insured (employees) work. The age distribution within the group: the older the age, the higher the morbidity rate.
• The distribution of men and women within the employee group, because even at the same age, the morbidity rate of women tends to be higher than that of men.

Company or Employee Insurance Should Include Disability Income Replacement and Life Benefits

The more complete the employee insurance benefits, the more it shows that the company's concern for its employees is quite high. In addition to reimbursement for medical treatment, such as outpatient care, inpatient care, and medication, employers may also consider employee health insurance facilities in the form of disability income replacement or life protection.

Disability income insurance is part of health insurance programs that provide income replacement for employees or insureds who are no longer able to work due to an accident or illness. The higher the occupational risk employees face, the more the company should consider providing this type of insurance.

Several Important Considerations Before You Take Out Additional Insurance Products

As mentioned above, if you still feel that company insurance is insufficient, you can take out additional insurance products. However, there are several considerations you should be aware of, such as:

• Your Current Insurance Service Class or Coverage Amount Falls Short of Your Expectations
  Health insurance has its own service class depending on the premium paid. If you feel the service class provided does not meet your expectations, there is no harm in looking for additional insurance. The same goes for life insurance: is the sum insured large enough or not? Adjust it to your needs, at the very least covering approximately 1 billion rupiah. If it is still insufficient, you can take out additional insurance outside the company.
• You Are Not Comfortable with the Company's Insurance Service
  One thing that makes participating in an insurance program very uncomfortable is the claims process or mechanism. If the company's insurance feels too troublesome, for example limited hospital services, or your high mobility combined with a cumbersome and difficult claims process, then you should consider buying or taking out another additional insurance.
• Your Budget for Buying or Taking Out Additional Insurance
  This factor is the most important one to use as your main reference. Do not push yourself to follow additional insurance that will burden your monthly expenses and end up making you stressed.

Benefits of Employee Insurance or Company Insurance

There are many benefits of employee insurance that workers can obtain, regardless of their position. Here are some of the benefits of employee insurance.

• Employees Feel More at Ease Because of Protection and Security
  When employees have insurance, they feel more comfortable at work. This is because there is a guarantee of protection against various unwanted events.
  No one, including you, knows when misfortune might strike. Although insurance cannot prevent risks or misfortune from happening, at the very least the risk can be borne by the insurance provider. Thus, employees can work with greater peace of mind.
• Protect Employees Financially
  It cannot be denied that health comes at a high price. On average, people have to spend a considerable amount when visiting a doctor or hospital, especially if the illness is serious. This is where insurance can play a role, because it can protect you and other workers financially.
  When an employee suddenly falls ill and does not have enough money, they can rely on health insurance that can be reimbursed by the company. In fact, some companies also provide cashless insurance facilities with reduced limits, so employees do not need to use their own money first.
• Minimize Risk When Facing Misfortune or Accidents
  The main function of insurance is to minimize risk and provide protection. When an employee falls ill, for example, insurance can cover treatment costs so the employee is better prepared when they fall sick.
• Improve Employee Welfare
  Providing employee insurance will have a positive impact on their welfare. This means employees can see that your company cares not only about profit, but also about the health of its staff. It is only fitting that the company can bear treatment costs through insurance when employees fall ill or are injured at work. This also applies to employees' immediate families.

For example, if an employee's wife is going to give birth and needs delivery costs, insurance can cover those costs. As a result, the employee's life becomes more prosperous, and employee loyalty to the company can also increase.

Increased welfare will certainly be directly proportional to the quality of work of employees. When they become more productive because they enjoy working at the company, the company's performance will automatically become more productive and can reach its goals faster.

So, if you ask whether company insurance alone is enough? The answer really depends on you. However, if you have additional insurance, the protection for yourself and your family becomes greater, which can certainly help you feel more comfortable in living your life.