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| What you
need to know about health insurance (part 1) |
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Here’s
the good news — we are now living longer because of advances
in medical technology. But the bad news — as we grow older,
we are likely to spend more on healthcare services. Couple
that with rising medical costs and we may soon find increasing
health expenditure eating into our retirement savings.
Therefore it makes sense to plan early and consider different
ways of covering our future healthcare expenses.
If you are a Singaporean, you should have a Medisave account,
in which you save part of your income for future healthcare
expenses. In addition, you should have Medishield, a low-cost
government insurance scheme designed to help you meet
major medical expenses not covered by Medisave.
Singapore citizens or Permanent Residents who reach age
40 and who have Medisave accounts will be automatically
covered under ElderShield if they do not opt out. ElderShield
is designed to provide Singaporeans with basic financial
protection against expenses required in the event of severe
disabilities.
If you are an employee, you are also entitled to benefits
provided by your employer.
To supplement these means of paying for your healthcare
expenses, you may also want to consider getting private
insurance.
Health insurance policies can help cover your medical
expenses or protect your income in an event that you are
disabled or hospitalised. The table shows various types
of health insurance products that are available in the
market. |
| 1
|
Type
of
insurance |
What it
does |
Who it is for |
Hospital
and
surgical insurance |
Helps pay for your inpatient expenses
if you are hospitalised, as well as
certain outpatient fees. Your insurer
will either reimburse you fully or partially,
depending on your insurance policy. |
Everybody |
| Hospital
income |
Gives
you a fixed amount of money for each
day that you are hospitalised. |
Everybody |
| Disability
income |
Pays
you a fixed amount each month (usually
no more than 80% of your average monthly
salary) to replace the income you will
lose if you are unable to work due to
total or partial disability arising
from accidents or sickness. |
Working adults |
| Long-term
care insurance |
Gives you a fixed
sum of money each month towards expenses
for long-term nursing treatment if you
are unable to perform at least three
basic activities like washing, dressing,
walking, feeding and toileting. |
Everybody, but it is only available
to those aged 40 and above under Eldershield. |
| Critical
illness insurance |
Helps reduce your
financial burden if you are diagnosed
with a major illness covered by the
policy. The lump sum payout can help
you pay for long-term treatment as well
as daily expenses. |
Everybody |
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These products are available as standalone
policies, or they can be included as riders to a life
insurance policy. (A life policy pays an agreed sum of
money to the insured’s estate if the insured dies.)
There is a full spectrum of health insurance products
that provide cover for a range of health-related situations.
The type of product you need depends on what you want
protection against. A financial planner or an insurance
representative can help to make recommendations that best
meet your goals. To find out more about health insurance,
check out www.moneysense.gov.sg. |
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By Quek Yan Ying, Intern (Challenge
Editorial Team)
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