health insurance innovations

2021 Health Insurance Innovations

Singapore residents are obliged with the responsibility to ensure their health. However, through the ministry of health, the Singapore government has an amazing innovation to ensure all citizens, both the poor and rich, are at least insured. This has been made possible through their MediShield Life program.

Medical bills in Singapore hospitals are relatively high, and not all citizens can afford to pay for the bills right from their accounts. This is where a health insurance cover comes in.

What is health insurance

Health insurance is specially designed to protect you from the greatest financial drawback you might experience; healthcare cost. The insurance coverage pays for any expenses incurred during hospitalization and medication in case of a body fracture, disability, accident, or general illness.

With the ever-rising medical and hospital bills, it might only take a single accident to wipe away all the money savings you had made in a lifetime. Having an insurance cover will save you from such because the insurance company will be responsible for the bills.

Medical cost inflation usually is higher than that of other products, and that’s why each citizen will need to buy an insurance cover. The MediShield Life may, in some cases, not pay for all the medical costs incurred and thus the need for an additional healthcare policy.

How to apply for health insurance in Singapore

If you need to buy an insurance policy to cover your health and that of your family, you may need some guidance to get the best plan. MoneySmart is a good partner for advice when buying insurance plans. Try the following steps on MoneySmart and see yourself easily landing a good health insurance plan.

1. Take a quiz: Some people may opt to download insurance brochures and compare them separately, while this may be tasking to others. If you find downloading and comparing the different brochures hard, then you can reach MoneySmart for assistance. You will be requested to answer a few questions online, and you will be good to go.

2. Talk to a MoneySmart insurance specialist: After you submit your answers, you will get a call from a specialist who will explain to you all the possible coverages that you can buy. You may use this chance to ask all the health insurance questions you have.

3. Purchase a policy: After understanding everything concerning ensuring your health, you can select a policy that suits you best and buy the policy. You will be covered once you start paying premiums.

Types of health insurance in Singapore

There are several insurance policies that you can buy in Singapore and lower your worries even when you get sick.

  • Hospital income insurance: This type offers you daily cash of S$250 from your insurer for every day you are hospitalized up to 365 days maximum. This incentive is paid for every illness or accident that may occur.
  • Long Term Care Insurance: This type offers a fixed cash amount monthly to carter for long-term nursing and care activities. The care activities include dressing, bathing, and foodstuff. This kind of cover is usually given to people who have the ElderShield supplements cover.
  • Disability Income Insurance: It offers you an ‘income replacement of up to a stated percentage of your gross monthly income. In the event of an accident, your insurer will pay you, say 80% of your income until you get well and be able to perform your duties normally. However, the percentage of coverage depends on the company you have bought insurance from.
  • Hospitalization insurance: Hospitalization insurance offers you compensation for all the medical expenses, hospital bills, and treatment costs. The amount of compensation varies depending on your insurance company. Coverage for these bills is either limited or full, depending on the policy you buy.
  • Critical illness insurance: Here, you will be paid a lump sum by the insurance company to help you pay for the hefty medical bills in case you are diagnosed with a critical health condition like cancer or heart attack. Each company has a list of illnesses that it may cover under this policy.
  • Terminal illness insurance: It is almost similar to critical illness insurance, but for terminal illness insurance, the disease you are diagnosed with must be a listed terminal disease. You are paid the lump sum to cater for your hospital bills for a given timeframe.

Conclusion

Health insurance is important to everyone living in Singapore. It is wise not to depend only on the MediShield Life cover but also buy other additional covers that may help in situations where MediShield Life does not.

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