Entering the workforce is not just about earning money, having fun, and buying the things you have always wanted. If anything, this is the ideal time to save up, take crucial steps to achieve financial independence, and protect your health so you will be ready for the future.
Perhaps, like many millennial Singaporeans today, you’re already looking into insurance savings plans and investment options that will help you generate passive income in the long runs. If so, you may want to expand your search and Google “health insurance Singapore” as well. Keep in mind that you can only enjoy the fruits of your financial planning if you remain healthy over the course of your life.
Although getting health insurance may be far from your mind because you are still strong and active, know that there is no better time to purchase one than now. Here are five reasons why you should seriously consider buying a health plan while you are still young.
The premium is the payment you provide to keep any health insurance active. While premiums for health plans depend on various factors, age is one of the most critical. Insurers usually charge young adults, like you, lower premiums because you are considered “low-risk,” meaning you are less prone to getting sick. On the contrary, those who are much older are charged with higher premiums because they are no longer at the peak of health and usually require regular treatment.
According to a team of expert research analysts, the average cost of an Integrated Shield Plan (IP) covering a private hospital for non-smoking 55-year-old men and women in Singapore is almost SGD 1,000, excluding MediShield Life premiums and Medisave contributions. In contrast, the same coverage for 25-year-old Singaporeans only costs a little above SGD 200. You can save more than SGD 750SGD if you buy a plan now instead of waiting several years down the road.
Waiting Period Becomes a Non-Issue
The majority of health plans impose a waiting period of at least 30 days from the approval of the policy. You are not entitled to any benefits or payments if you get sick or receive treatment during the waiting period. Because of this restriction, buying a health plan at a young age is more advantageous.
Think about it. Because you are purchasing a health policy while you are still healthy, there is almost a hundred percent chance that the waiting period will be over before you need to use the benefits in your health insurance. Nevertheless, it is still best to opt for a plan with the lowest waiting period even if you have a slim chance of experiencing a health issue.
MediShield Life Is Not Enough
Although Singapore provides a basic health insurance plan for citizens and permanent residents known as MediShield Life, it is, almost always, not enough to protect you, especially if you get diagnosed with a severe illness. Keep in mind that MediShield Life has claim limits and restrictions.
The plan may cover large hospital bills and costly medical procedures like chemotherapy, but the maximum claimable amount per year is at SGD 100,000 only. Moreover, the subsidy is meant for treatment in public hospitals and fixed at B2/C type wards. If your illness requires treatment from private hospitals or if you choose an A/B1-type room in a public hospital, only a portion of your bill will be covered.
For instance, if you receive treatment in a private hospital, housed in the cheapest ward that costs you a total of SGD 22,400, you can only claim less than SGD 8,000. That means you have to shoulder the remaining balance of more than SGD 14,000.
Because you cannot control what health issues you will suffer in the future, it is best to boost your coverage with an IP. While it will cost you extra, the peace of mind you’ll get knowing that you will receive better medical care when you get sick will be well worth the price tag.
Lower Chance of Rejection and Better Coverage
Perhaps the biggest reason why you should consider buying health insurance early is the high probability of approval. If you wait much later until after you suffer from a medical condition and discover you need an IP, there is a good chance that you will be rejected or receive minimal coverage.
Insurance providers take pre-existing conditions seriously. Your insurer will most likely exclude your existing medical condition if you buy a health plan, which defeats the purpose of having one. As such, it is best to purchase when you are still young in order for you to receive maximum coverage.
Young People Also Get Sick
Although you are young may be free from illness, it does not mean that you are guaranteed many more years of good health. The truth is you can get a serious disease at any age and even if you observe a healthy lifestyle.
Did you know that a team of researchers from John Hopkins University found that most cancers happen due to random mutations, not because of diet, exposure to chemicals, genetic history? Since you have no way of knowing when you will suffer from a severe medical condition and will need a large sum for treatment, finding the most beneficial health plan as early as possible is a sensible decision.
Given the reasons discussed above, it is clear how getting health insurance while you are still young and healthy makes a lot of difference. Keep in mind that it is best to have a safety net in case health issues rob you of the ability to work and generate income. Avoid draining your bank account and burdening your family with hefty healthcare bills by putting health insurance on top of your list of insurance products to purchase ASAP.