Managers and employees of firms which provide Group Employee Benefits often think that their Group Hospital and Surgical policy (GHS) is sufficient and they don’t need any other individual plan. Check out why this may expose them to great risks...

Companies and other groups usually provide group hospital and surgical policies, and even have major medical for their employees.

This is a yearly renewable policy, and employees are usually not covered when they leave.

The transferable medical insurance scheme (TMIS) which allows for an employee to be covered for an additional 12 months after leaving an employer and joins another firm on the TMIS, is not popular. Thus, it is safer for employees to regard their GHS as non-transferable and non-portable, and take a personal medical plan just in case.

As GHS usually terminates cover for employees at age 65 or 70, it would be unsafe to wait to take up a personal plan at that age, as you may not be insurable and most plans must have last entry age below 60 or 65.

Financial Planning Viewpoint

From the financial planning viewpoint, having a GHS is a “bonus” and you should take a lifetime plan, preferably on an as-charged basis with a high annual limit of at least $100,000, and a lifetime limit of at least $300,000.

When there is a claim, first claim from the GHS, and only claim from the personal plan any expense which cannot be recovered from the GHS.

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