Why Singapore Women Should Set Aside Money For Health Insurance – And How To Go Smart About It
âWhen deciding on the amount of health insurance, you should weigh your preference for the hospital or ward class and the desired income protection in the event of illness or disability against the long-term affordability of supplementary insurance. âSaid Sivanithy from IFL.
He found that around 70 percent of Singapore residents have an Integrated Shield Plan, with some covering a higher ward (A or B1) in a public hospital while others covering admission to a private hospital.
However, two-thirds of all patients choose the subsidized B2 or C wards when entering hospitals, so they may not have fully enjoyed the benefits of the plans, he said.
“You should always try to save before you spend each month,” he added. “You don’t want to be insurance-rich, you want to be cashless.”
While this can vary from person to person, his recommended guideline is to save at least 10 percent of your net wage and not to spend more than 10 percent of your annual income on insurance premiums.
BUY WHAT MEETS YOUR NEEDS
You should also buy only what you need, taking into account your family medical history, financial situation, assets, liabilities, and the needs of your loved ones.
Overinsurance is when your coverage is more than your ongoing liabilities and the potential loss of income for your family, said Leaf Tan, a personal wealth manager with 25 years of experience managing insurance and retirement portfolios.
âTo prevent this from happening, you need to understand your liabilities and the possible financial repercussions for you and your family should adversity strike. The purpose of insurance is to ensure minimal financial impact for you and your family in such a situation, âshe said, recommending that 10-15 percent of your monthly income be allocated to health insurance.
Prudential’s Tan noted that it is quite rare for customers to be overinsured.
In fact, the LIA study showed that a working adult in Singapore has, in addition to a protection gap for critical illnesses, an average protection gap for mortality of around S $ 170,000. The mortality protection gap is the lack of the amount of money needed to meet a family’s financial needs in the event of death.
“The most important point to keep in mind is to get insurance that suits your individual needs and avoid double coverage,” she said. So make a habit of checking your insurance portfolio with a financial advisor representative at least once a year to make sure you are properly insured.
You may also want to do this on every life milestone such as For example, when you are raising a family while staying on top of any major changes in premiums, benefits or policies to ensure your coverage remains relevant.
NOTE THAT EVERYTHING IS NOT COVERED