In truth, the cost for private health insurance in Singapore is certainly not cheap. However, if you want the best coverage, then most of us will opt for the private health insurance scheme. Under those circumstances, you must be prepared to fork out more capital for your insurance coverage. At the same time, it is my duty to inform you not to forget about the cost for private health insurance in old age. After all, what’s the point of buying the best coverage now if you can’t afford it in the future? With this intention in mind, let’s conduct an in-depth calculation to find out the cost for private health insurance at each life stage. Show
Table of Content:
One Minute Summary:
Part 1: AssumptionsIn order to boost clarity in this post, there are three assumptions that we need to make. Part 1.1: Integrated Shield Plan and the RiderIn summary, an integrated shield plan is an optional healthcare insurance policy that provides coverage for medical bills in public or private hospitals. At the present time, there are seven insurers that provide such coverage; namely,
As I have noted in my starter’s guide, the basic integrated shield plan does not cover the deductible and co-insurance component of the medical bill. In other words, you need to pay for these cost from your own pockets. In order to reduce such out-of-pocket cost, you may choose to enhance your health insurance coverage with the rider for an integrated shield plan. To that end, the rider will cover both the deductible and co-insurance component of the medical bill. Under those circumstances, you will pay a smaller portion of the medical bill; that is the co-payment. Given that each insurer may offer a slightly different scope of coverage, our comparison will be based on SEE ALSO: Private vs Public Healthcare Insurance in Singapore
To this end, this allows us to conduct a fairer comparison across the respective insurers and their plans. Part 1.2: Additional Withdrawal LimitUnder the Private Medical Insurance Scheme, you are allowed to use CPF MediSave to pay for the integrated shield plan. However, we need to abide by the Additional Withdrawal Limit set by Ministry of Health, Singapore. Additional Withdrawal Limit:
For any amount above the Additional Withdrawal Limit, you will need to pay the insurance premium in cash. Given that information, we will also conduct a breakdown for the cost payable via CPF MediSave and in cash. Part 1.3: Average Cost of PremiumEmphatically, the respective insurers may adjust the health insurance premium from time to time. As a result, the calculations that I have made in this post may not be entirely accurate (this depends on when you read this post). Additionally, the intention of this post is not to rank the insurer according to the premiums that they charge. Consequently, I will use the average annual insurance premium across the respective age bands. Part 2: TerminologyNext, I will use the following terms to define the breakdown for each of the cost component.
SEE ALSO: Integrated Shield Plan Singapore: A Starter’s Guide Now that we have defined all the assumptions and its terms, let’s go through the cost for private health insurance in Singapore. Part 3: From 0 to 21 Years OldTo begin with, let’s look into the cost for private health insurance from birth till adulthood. Generally, the younger you are, the cheaper the premium rates. Hence, it is no surprise that the average capital outlay is merely $674.44 a year for the first twenty-one years.
Part 4: From 22 to 55 Years OldIn general, the premium rates are adjusted based on your age band. Consequently, you may expect an increase in the average premium during your adulthood. In detail, you will pay an average premium rate of $1,282.28 a year as an adult.
To point out, you are able to utilise your CPF MediSave to pay for the entire premium for the basic integrated shield plan. For the most part, this is without any additional cash outlay due to the CPF MediSave Withdrawal Limit. Part 5: From 56 to 90 Years OldIn time to come, this is the period when you retire. Despite that, most of us will continue to keep our health insurance policy. Under those circumstances, you must be prepared to pay a much higher rate of premium. In fact, the average annual premium is $8,105.56 during your old age!
SEE ALSO: Total Cost for Public Health Insurance Singapore Part 6: From 91 to 100 Years OldIn the event that you outlive the average life expectancy, the average cost for private health insurance will be $17,016.35 a year. As a matter of fact, most of the plans are guaranteed to be renewable for a lifetime. Hence, you may continue to pay the insurance premium to enjoy the private health insurance coverage beyond your 100th birthday.
Part 7: Lifetime Cost for Private Health InsuranceSumming up all the figures above, you may expect to pay an average sum of $485k from life till death. In other words, the average capital outlay will be $4,852 a year throughout your life. This is after taking into account the adjustments in premium rates at each age band. Private Health Insurance: Lifetime Cost across the InsurersPart 8: Non-Guaranteed Premium RatesNow that you know these figures, how ready are you for retirement? Before you think that it is achievable to save $275k by the time you reach 55 years old, think again. Above all, the premium rates are non-guaranteed and are expected to be adjusted from time to time. In detail, this will depend on the insurer’s claim experience, medical inflation, as well as the general cost of treatments, supplies or medical services in Singapore. In other words, there exists a possibility that the premiums may increase (or decrease) in the future. Are you on my mailing list? Previously, I sent my readers a projection on how I feel private health insurance may cost in the future. If such content resonates with you, be sure to join us so that you won’t miss out any awesome content. How much is private health care per month UK?The average yearly premium on private health insurance is around £1,500. This works out at about £125 a month, but lots of people pay much less. The amount you pay depends on your insurer, what's covered on your policy and your own circumstances and current state of health.
Is private healthcare in the UK worth it?Whether you think private health insurance is good value for money is entirely a personal choice. For many people, there's no more worthwhile investment than their healthcare. Meanwhile, others are happy to exclusively rely on the NHS (though do remember you can still use the NHS when you're insured).
How much does healthcare cost in SG?7) Households spent an average of $172 per month on outpatient services. Is private health care worth it in Australia?It depends on your income -- if your income is pretty high, you potentially save a substantial amount of money. You do not have to pay this loading if you were over 31 when you migrated to Australia and took out a private hospital cover within 12 months of your Medicare registration date.
|