Have you got Sufficient Health Insurance Coverage?

The cost of healthcare today is amongst the most expensive things that concerns every Singaporean today (others being property, cars). The reason why for that rising healthcare cost is aplenty also it doesn't look like it is more affordable anytime soon.

The Singapore government's efforts to put a healthcare cost system in place is commendable, however you may still find gaps to plug. Singaporeans still pay an enormous a part of their medical fees out of their pockets. With medical inflation for a price of 15%, there's growing worry about the affordability of healthcare today and in the years in the future.

The Singapore Model

Singapore's medical framework is a unique one with 4 different tiers, each covering different factors in our healthcare. By using a mixture of subsidies in addition to compulsory savings from your wages (i.e. CPF contributions), many of our healthcare bills are looked after.

#1 Subsidies

Subsidies are one of the biggest factors which make healthcare in Singapore affordable. The government provides heavy subsidies as high as 80% of the total bill in public hospital wards.

#2 MediSave

A a part of our earnings are put in our MediSave accounts each month to help us save up for future medical needs. Medisave covers personal or immediate family's hospitalization, day surgery and certain outpatient expenses.

However, there are lots of limits placed on Medisave withdrawals that prevent us from claiming the entire cost of our treatment.

#3 MediShield

Your basic medical health insurance. It will help with larger hospital bills and selected costly outpatient treatments for example dialysis and treatment for cancer. MediShield life automatically covers all pre-existing health conditions such as cancer, kidney complications, liver failure etc.

#4 Medifund

Should you have financial hardships when paying your remaining hospital bills even after receiving all of the subsidies as well as other types of payments (i.e. those listed above and private insurance), Medifund steps in to help needy Singaporean patients.

It may appear like Singaporeans are very well included in these 4 tiers. However, simply having these 4 tiers is NOT ENOUGH.

Out-Of-Pocket Expenses

Singapore's out-of-pocket charges are among the highest in Asia at 57% of total health expenditure in 2020. Out-of-pocket expense refers back to the share of expenses the insured must pay towards the doctor, without a 3rd party for example an insurer or government.

This shows that regardless of the government's efforts to put in place a healthcare costing system that can help Singaporeans reduce their financial burden, we are still paying a lot more than 50% in our healthcare costs.

With the rising healthcare costs, there needs to be greater focus on the significance of healthcare insurance as a surgery can easily set you back tens to hundreds of thousands of dollars.

Getting Our Own Health Insurance

Besides living the kitchen connoisseur, purchasing healthcare insurance coverage is probably the most important things you need to do on your own along with your family members. Around we Singaporeans think agents try to hard sell their policies, the fact is that too many Singaporeans aren't protected enough.

It's easier to be secure than sorry.

Give your reassurance by preparing in advance and preparing yourself for excitement. Don't turn to healthcare solutions only if an unfortunate event happens and you're scrambling to find out what you can do to cover the expense.

Features Of Healthcare Insurance To Consider

#1 Amount of Policy Coverage

5 years? Ten years? Two decades? Whole life? The amount of the insurance policy coverage has become more important given that people are living longer.

#2 Stand-Alone Or Bundled Policy

Do you want a stand-alone policy with only care coverage? Or can you want a bundled policy carefully because the primary or supplementary policy?

It is essential to be aware what coverage you want from your policy. Insurance agencies today offer a number of policies that provide coverage for various aspects. Would you like an all-in-one policy that covers for your entire family or individual policies that differ and therefore are catered to each family member?

#3 Affordability

You call for a balance between purchasing insurance that provides enough coverage while being able to reach other financial goals.

Purchasing insurance coverage is essential, however you should still have finances set aside for savings and investment plans. By mapping out what exactly you would like covered from your insurance policies, you are able to organize your finances and allocate the portions required for your other financial goals.


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