Top 3 Things to Know About Your Employer-Provided Life & Health Insurance
Is Your Cover with Your Employer? What You Need to Know
Employee benefits packages often include employer-funded life and health insurance—providing valuable protection without the financial burden of premiums. Given the rising cost of private health insurance, this can be a significant advantage. Even better, these plans often cover pre-existing conditions, eliminating the hassle of medical underwriting. In many cases, policies can also be continued after leaving the company, making employer-provided insurance a cost-effective way to secure financial protection when you need it most.
However, while these benefits offer a strong foundation, they may not provide complete coverage. Here are three key questions to ask about your employee insurance benefits:
1. Health Insurance: Does your policy cover non-Pharmac treatments, especially for cancer?
Some of the most popular employee health insurance products—such as Southern Cross Wellbeing One and Two—offer solid coverage but have severe limitations when it comes to non-Pharmac cancer treatments, capping payouts at just $10,000 per year. Unfortunately, this means that many people battling cancer struggle to afford safe and effective treatments despite having insurance. For context, the last claim I processed for unfunded treatment, including Keytruda, was $136,000. If your policy has similar limitations, there are options to supplement coverage, both through Southern Cross and other insurers.
2. Cover Limits: Are your Life, Trauma, or Income Protection benefits sufficient?
Employer-provided life, trauma (critical illness), and income protection policies often set coverage at a standard level—typically a multiple of your salary. However, some plans require employees to actively apply for their full allowance, often involving basic health disclosures. To ensure you're adequately covered, request a copy of your employee benefits summary and confirm your cover details with your insurer. If your current level of protection isn’t enough, you may be able to top up coverage at discounted rates through your employer's insurer or explore additional options with an adviser.
3. Continuation: Can your policy be carried over if you leave your employer?
Most group policies now allow employees to continue their insurance when they leave a company, but there are strict timeframes to request this transition—typically 30, 45, or 60 days. If you miss the window, your cover will lapse, meaning you'd have to apply for a new policy, likely with exclusions for pre-existing conditions. To avoid this risk, confirm both whether continuation is available and what steps are required to ensure uninterrupted coverage when transitioning jobs.
Next Steps: How to Protect Yourself
If your employer provides insurance, it’s worth reviewing how well it aligns with your long-term financial plan. In many cases, simple adjustments—such as adding a supplementary policy—can fill gaps while keeping personal insurance costs affordable. A strategic review can ensure you have the right protection in place without unnecessary expenses.
If you’re unsure where to start, get in touch. We love working with clients who already have employer benefits because we can structure a cost-effective plan that maximizes their coverage without breaking the budget.
