Group Insurance and Employee Benefits

How it works

• Common components: group term life (GTL), group hospital and surgical (GHS), group major medical (GMM), outpatient (GP / specialist) and dental.
• Cover is designed by employee category and can be extended to spouses and children.
• Group cover generally ends when the employee leaves.

Key concepts

Concept	Meaning
Mandatory medical insurance	For Work Permit and S Pass holders, employers are required by law to buy inpatient medical insurance with an annual claim limit of at least S$60,000 (subject to MOM rules).
Employee category	Cover tiers are set by grade or role.
Minimum headcount	Group insurance usually requires a minimum number of insured employees.
Pre-existing conditions	Depending on group size and terms, pre-existing conditions may be treated differently.

Usually suitable for

• Business owners who have set up a company in Singapore and are starting to hire
• Companies that want to improve employee benefits and attract talent

Risks to note

• Cover ends on leaving, and employees need to add personal protection themselves.
• Cover levels are set by the company plan and may not meet personal family needs.
• Rates may be adjusted at renewal based on claims experience.

Questions to ask

• What is the cover tier for each employee category?
• Are dependants covered?
• Does the mandatory medical insurance meet MOM requirements?
• How are renewal rates adjusted?