We might be offered some group insurance plan either medical or personal accident plan, other than the company insurance coverage.
This kind of group insurance normally involved at least few hundreds of policy holders, say 500 holders.
I have come an offer like this, a group insurance offer by a club house, which involved 500 policy holders, that meant if failed to reach this number of holders, the insurer would turn down the whole project. This could due to the insurer need such number of participant for leverage the premium to the total sum of insurance coverage.
Second, the premium amount is fixed and guaranteed no matter how old and the health condition of the policy holder. All of the policy holder enjoy the same amount of insurance coverage.
I would to discuss on the pros of taking up such group insurance plan:
1. Good purchase for those has health condition that might incur loading on purchasing an insurance coverage. If someone is too fat or it obesity condition caused him/ her facing some extra charge or loading on premium when he/she want to purchase an insurance plan, this group insurance is a good purchase form him /her.
This is because the premium is fixed and same amount for all the participants of the group insurance plan, included those fatty or normal weight people.
2. The premium rate is super lower compared to purchase a insurance plan by ourselves alone. I meant, the premium rate still lower for a normal health condition participant if compared to we purchase a insurance plan outside.
I have checked with my insurance agent, I have to pay MYR1,500 (about USD400) for purchasing same insurance coverage outside but I only have to pay MYR600 (about USD120) if purchase via the group insurance plan.
Cons:
1. Might not able to get a insurance agent to follow up on claim process in the future. There is no agent handle the claim process when there is any issue. Anyway, we still can go to the branch and settle the claim by ourselves.
Comparing the pros and cons, I would say the group insurance is a good purchase for limited budget group.
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A good plan prospective.
Thanks, dear @Albena, I hope all the ideas or learning of our life can be shared here and help each other to learn and have a better life other than making earning via blogging or commenting here.
Cheers!