Insurance covers provide an easy way of shielding oneself from unexpected life crisis by providing a way for transferring risk. Regardless of the amount of income or age, everyone needs insurance. Rapidly aging population, growing incidences of chronic diseases, as well as escalating healthcare costs, means Singaporeans, more than ever, need to take insurance covers.
However, the health insurance landscape can be tricky to navigate given the number of options available. When it comes to health insurance policies, hospitalization, and integrated shield plans, maternity, term insurance, critical plans and whole life insurance are some of the pacts that Singaporeans need to pay close watch to, as a way of transferring risk in pursuit of good health.
Changing lifestyles, deteriorating environment, and increased stress levels means people will always be prone to get sick. Health insurance policies are designed to provide a safety net for combating financial burdens that can come into being as a result of health issues or fatality.
Below are some of the things to look out for before settling on a health insurance plan.
Plan According To Your Needs
When taking health insurance policies it is important to consider some of the needs that might arise. If you are newly married or planning to start a family, you may have to take a policy that will cater for maternity costs. In case you have aging parents, it might be wise to take cover for aging parents.
Insure the Right Amount
While being under-insured is much better than not being insured, it is still not enough and may plunge one into more financial meltdowns. Before taking a health insurance cover, take into account the medical costs that might come into being and whether the policy will be able to cover a good chunk of the costs.
Don’t buy a cover just because you can afford it now, always consider how much it will cost as you get older.
Health Insurance Policies
These are plans provided by insurance companies designed to cover expenses incurred in case one experiences health issues. A good chunk of the policies cover medical and surgical expenses. Just like other forms of insurance coverage, Heath insurance requires one to pay premiums monthly, or annually.
Types of Health Insurance Plans
Hospitalization & Surgical Insurance
It is a basic type of insurance plan, which covers health and surgical costs incurred due to accidents and illnesses.
Catastrophic Medical Insurance
It covers major illnesses that most of the time lead to steep medical costs. Insurance companies, in this case, provide coverage for prolonged treatments like dialysis, chemotherapy, and radiation.
Supplemental Medical Expenses
This is an additional insurance plan, designed to supplement the main medical plan.
Disability Income Insurance
These types of policies are designed to provide a regular stream of income in case the insured is disabled such that they are not able to go to work.
Why You Need a Health Insurance
Health insurance policies, depending on type, are designed to provide a range of benefits not limited to cashless financial aid in case of hospitalization. Such policy also provide cover for medical checkups once a patient is discharged and cover costs for medication.
Health Insurance Policies also provide financial aid for emergency hospitalization, financial aid in case of critical illness as well as reimbursement for hospital expenditure. Some policies also do come with tax benefits and financial cover for pre and post-hospitalization expenditure.
Integrated Shield Plan
An integrated shield plan is a type of health insurance plan made up of two parts, MediShield Life and a private health insurance portion.
MediShield Life is a mandatory national health insurance scheme, administered by the government and designed to cover public hospital bills for class C and B2 wards. All Singaporeans are automatically covered under this plan. Coverage is provided regardless of age or preexisting medical conditions.
| Hospital Ward | Room Features | Can Choose Doctor |
| Private | 1/2/4-beds, air-con, TV | Yes |
| Class A | 1 bed, air-con, TV | Yes |
| Class B1 | 4-beds, air-con, TV | Yes |
| Class B2 | 6-beds, naturally ventilated No TV | No |
| Class C | 8-10 beds naturally ventilated No TV | No |
Patients who seek coverage under this plan would have a good chunk of their bill covered by MediShield Life, less the deductible and co-insurance component. Payout under IP only covers a fraction of the total bill in patients who seek treatment at higher-class A and B1 wards but don’t have IP cover.
Private health insurance, on the other hand, is designed to cover bills incurred from treatments in class B1 and A wards. It also covers costs incurred in private hospitals.
Considered an upgrade of the government offered MediShield, Integrated Shield Plan allows a patient to enjoy coverage at A/B1 wards or at private hospitals. While the plan calls for more payments when it comes to premiums, patients don’t have to worry about a large bill wiping out their Medisave or cash savings.
Integrated Health Insurance Shield Plans Comparison
| Benefits | NTUC Income Shield Plan P
S$
| AIA Health Shield Gold Presige
S$
| Great Eastern Supreme Health Plan | Prudential Shield Plan A Premier | Aviva My Shield Plan |
| Inpatient and Day Surgery | |||||
| Daily Ward & Treatment Charges | 1600 | 1,700 | As Charged | As Charged | As Charged |
| Daily Ward Treatment Charges in ICU | 2,200 | 3,600 | As Charged | As Charge As Charged d | |
| Surgery | 1050-14,100 | As charged | As Charged | As Charged | As Charged |
| Surgical Implants and Approved Medical Consumables | 14,000 | 5,000 | As Charged | As Charged | As Charged |
| Outpatients | As Charged | As Charged | As Charged | ||
| Kidney Dialysis | 3,000/mth | 36,000/yr | As Charged | As Charged | As Charged |
| Radiotherapy | 600/day | 500/day | As Charged | As Charged | As Charged |
| Chemotherapy | 3,500/mth | 36,000 yr | As Charged | As Charged | As Charged |
Term Insurance Rating Singapore
Term insurance is a type of cover that provides coverage for a certain period of time or years. A payout is made if the insured dies within the policy tenure. No payout is made in case the insured survives the policy tenure.
It’s premiums are usually low in younger years and tend to increase rapidly as one gets old. Term Life insurance can be used as an insurance cover for a loan repayment or post-death liabilities.
In Singapore, Term life policies typically focus on two covers, death and terminal illness. Other insurance companies offer additional benefits such as cover for dread diseases, Total and Permanent Disability (TPD) as well as premium waivers and personal accident cover.
Why Take a Term Insurance
Larger Life Coverage
Term insurance plans provide pure life coverage and since they are affordable, one can opt for a higher life cover for the same amount.
Riders
Insurance companies do allow policyholders to attach riders to their term loan thereby enhancing policy utility. Some of the rider’s one can add include illness and critical illness plan, which allows one to receive the sum assured of being diagnosed with a critical illness. Other riders include loss of employment cover, disability cover, and waiver of premium cover
Enhanced Cover
An insurance company may offer the flexibility of enhancing the life cover during critical stages of the policyholder tenure. In this case, one may be allowed to enhance cover by 50% at the time of marriage and by 25% on becoming a parent.
How to Choose Term Insurance
The best term insurance policies are the ones that offer coverage over a number of things. Coverage, in this case, should not be limited to death and terminal illness.
Some of the additional riders to look for in term insurance include coverage for total and permanent disability. However, always compare the premiums with and without the riders to ensure you end up with the best deal.
Term insurance policies vary from one company to another. Premiums paid also differ depending on whether one is a smoker or not. There are also insurance companies that offer premiums depending on one’s health condition.
Top Term Insurance Policies in Singapore
| Term Insurance | Premiums | Entry Age | Benefits |
| AXA Term Protector | Premiums Start at 65 cents per day | I month old Up To 70 Years | Minimum Assured S$100,000.
Covers Death and Terminal illness.
Riders Available: Advance Total and Permanent Disability payout, Critical Illness payout, Personal Accident benefit
|
| NTUC iTerm Insurance | 0 Years-79 years
Renewable Till 84 years
| Death terminal illness and TPD cover.
Policy renewal Until 84 years.
Optional Riders: payor Premium Waiver, Enhanced Payor Premium Waiver, Dread Disease Premium
| |
| AIA Secure Term Plus | Starting From S$22/ month | Maximum Entry Age 70 Years | Covers against terminal illness and death.
Fixed premiums throughout policy tenure.
Optional riders : Critical illness Rider, Accident Cover Rider, hospital and Surgical Benefit Rider.
|
| Aviva MyProtector-Term Plan | Premium starting at S$2.44 | Renewable until 99 years | Coverage between S$500,000-S$1.5 million.
Covers against death and terminal illness.
Optional riders: critical illness advance cover.
|
| FWD Term Insurance | Starting from S$2.60 per day | Maximum entry age- 70 years
Policy Renewable until 100 years of age
| Covers death and terminal illness.
Maximum sum assured S$3 million.
Optional Riders: Critical Illness Cover Premium Waiver Cover
|
Whole Life Insurance
Whole life insurance is a type of contract that includes insurance and investment components. It includes lifelong coverage and an investment component known as policy cash value. This type of cover protects the insured their entire life, provided required premiums, are paid to the maturity date.
The investment component is designed to build cash value that the insured can borrow against or withdraw.
Basics of Whole Life Insurance
Death Benefit
Death benefit in a whole life policy is the stated face amount, which can be increased through dividend accumulation. The face amount can also decrease the deduction of outstanding policy loans.
Maturity
Whole life Insurance, unlike term insurance, matures at death or at the age of 100, in some policies. A policy may become a ‘matured endowment’ in case the policyholder lives beyond a maturity date of say 100 years.
Taxation
Whole Life Insurance policies are exempt from taxation except in unusual circumstances. However, if a policy is cashed out before the maturity date, it might incur some charges in the form of taxes.
Who Needs Life Insurance
Whole Life Insurance is designed for people who wish to provide their dependent family members a reliable stream of income in case they die or liquidate their business debts. Such policies can also be used to pay down debts or be used for charitable events.
The best Whole Life Insurance Policy in Singapore by Premiums
Annual Premium for Male Non-Smoker
| Age | Aviva | Manulife | Tokyo Marine Insurance Group | Great Eastern | Ntuc Income |
| 30 | S$2203 | S$2,065 | S$2,156 | S$2,323 | S$2,123 |
| 35 | S$2,494 | S$2,344 | S$2,549 | S$2,667 | S$2,423 |
| 40 | S$2,822 | S$2,660 | S$3,017 | S$3,042 | S$2,746 |
| 45 | S$3,298 | S$3,013 | S$3,540 | S$3,127 |
Annual Premium for Female Non Smoker
| Age | Aviva | AXA Life | HSBC Insurance | Manulife |
| 30 | S$1,523 | S$2,063 | S$2,027 | S$2027 |
| 35 | S$1,971 | S$2,698 | S$2,729 | S$2,729 |
| 40 | S$2,608 | S$3,441 | S$3,642 | S$3,642 |
| 45 | S$3,422 | S$4,496 | S$4,437 | S$4,437 |
Term vs. Whole Life Insurance
While both term and whole insurance are geared towards providing financial security, they also differ in some aspects. Choosing between the two can be overwhelming given that both of them come with unique benefits.
The most important thing to consider when choosing between the two, is to consider first why you are buying the life insurance.
When to Choose Term Life
You can select a term life insurance if you need to replace your income over a certain period such as when raising kids or paying off the mortgage.
Term life is also ideal when one wants affordable coverage that does not result in unnecessary financial burden.
When to choose Whole Life
Whole Life Insurance is ideal for people who want to provide money to their heirs to pay off for things like debt. The policy is also ideal for people who have lifelong dependent such as partner or child with special needs.
Whole life is also good for people who want to spend retirement savings and still leave some inheritance money to their loved ones.
Source- https://zuuonline.sg/money/insurance/top-health-insurance-policies-in-singapore/
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