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Insurance Protection in Singapore | Insurance Protection Plans Singapore

Health Insurance | Insurance
by Priyadarshini 1 September 2022

It’s much easier to lose money than it is to make it. Consider how long it takes you to accumulate a six-figure sum. A single stay in the hospital, on the other hand, can completely demolish it. Insurance can help protect you against this. In this blog, we discuss insurance protection in Singapore.

Insurance is an expense because you must pay premiums to the insurer in order to continue receiving protection. However, this is one expense that you should not skimp on because it may save you from larger financial losses in the future.

Insurance Protection in Singapore

Hospitalisation insurance

One of the most important types of insurance to obtain in Singapore is hospitalization insurance, which covers the cost of medical treatment if you are hospitalized. If you don’t have any other insurance, this is the first option to consider. Singapore citizens and permanent residents are already covered by MediShield Life, a very basic form of health insurance. However, because MediShield Life is intended for use in B2/C wards at public hospitals, the claim limits are relatively low. Any remaining amounts must be paid in cash or from your MediSave account, which has withdrawal limits.

In other words, if you end up in the hospital with only MediShield Life, you’re out of luck. For you to supplement your MediShield Life coverage, insurers have developed the Integrated Shield Plan (IP). Because it does not need to duplicate your existing MediShield Life coverage, this is one of the most affordable forms of hospitalization insurance in Singapore.

Long-term care insurance

CareShield Life is another government program that you may be unaware of. If you become severely disabled, this long-term care insurance plan will pay you a monthly benefit. CareShield Life already covers those born in 1980 or later who are 30 or older. If you are young enough to remember life before the internet, you will be enrolled in the scheme when you reach the age of 30. From the end of 2021 onwards, participation is optional for everyone else.

If you are unable to perform at least three of the following Activities of Daily Living (ADLs) without assistance, CareShield Life will pay you a monthly benefit starting at $600. These ADLs are washing, dressing, feeding, toileting, mobility, and transferring. CareShield Life supplement premiums rise with age, but you can lock in a lower premium by signing up sooner.

Insurance Protection in Singapore – Coverage and Cost

While no one should be without insurance, don’t go too far and over-insure yourself. In other words, you don’t want to spend all, or even most, of your money on insurance. As a rule of thumb, you can spend 3% to 10% of your take-home pay (after CPF deductions) on insurance for protection, excluding investment-linked insurance and other types of insurance designed to assist you in accumulating wealth. Aside from determining your true insurance needs, you should also consider how your needs will change over time.

When you retire, you may find that you no longer require certain types of insurance or that you wish to downgrade certain policies. At the end of the day, insurance exists to safeguard your finances. However, if you overdo it, you may find yourself in a worse position than that kid who barely sleeps because he has 20 hours of tuition per week.

Insurance | Credit Cards | Loans | Banking |

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