Insurance Cost In Singapore | Average Cost And Benefits Of Health Insurance In Singapore

Singapore is a metropolitan city-state and it is regarded as one of the easiest countries to fit into because of its relatively safe and modern environment. However, the living cost in Singapore is very high and so does the medical care and treatment. Therefore, it is very important to have health insurance or other types of insurance to safeguard your money. Today, I will discuss various insurance costs in Singapore as well as the average cost and benefits of health insurance. So, if you are planning on buying insurance coverage in Singapore then keep reading the article.

Hospitalization insurance is considered one of the most important insurance policies in Singapore. If you are living in Singapore and if you don’t have any insurance then you should consider buying this insurance coverage as soon as possible. The average cost of Hospitalization insurance is S$2375 and the exact number might vary depending on age, health condition, etc. On the other hand, the most cost-effective type of health insurance plan is Integrated Shield Plan (IP) and it might cost you S$1250. Moreover, an international health insurance plan could cost you around S$3,227.

How Much Of Your Income Should You Spend On Insurance?

According to many financial experts, you should spend at least 3% to 10% of your take-home income on insurance policies. This is a general rule of thumb for the average person. For example, if you earn a handsome amount of money and spend very modestly then you can get away with spending a much smaller fraction of your income on insurance. However, if insurance is the only form of investment or savings then you should spend more money on the investment. The 3% to 10% rule is for protection in emergencies.

Insurance Cost In Singapore

There are various types of life insurance available in Singapore and different insurance will cost you a different amount. Let’s check them out!

1. Term Insurance  

The premium of term insurance depends on various things like age, health condition, etc. For example, a 30-year-old male non-smoker with a $500,000 sum and a policy term of 20 years would cost you about $22 to $35 per month. The best part of term insurance is, if you have a 20-year plan then the premium will remain the same for 20 years.

2. Critical Illness Insurance

Critical illness insurance is a type of insurance that you can buy if you already have health insurance and life insurance. If you have a serious illness then this type of insurance will give you a lump sum payout. You can easily get critical illness protection by purchasing a critical illness rider for your life insurance policy. However, there are some disadvantages of critical illness insurance. Therefore, plenty of Singaporeans preferring to buy standalone critical illness insurance plans. There are a few variations in critical illness insurance, all priced differently:

1. Cancer insurance

2. “Big 3” (cancer, stroke, heart attack) insurance

3. Standard (late-stage) critical illness insurance

4. Early-stage critical illness insurance

5. Multi-payout critical illness insurance       

If you buy a single payout of $200,000 critical illness insurance then you can expect to pay about $20 to $80 per month for a stand-alone standard critical illness plan.

3. Car/Motorbike Insurance

If you have a vehicle then you have to buy third-party motor insurance. The price of this type of insurance depends on factors like your age, when you got your license, vehicle model, etc. In Singapore, car insurance might cost you at least $1,200 a year.

4. Home Insurance

If you have your own house then home insurance is a great way to protect your asset. Home insurance can protect your house from horrible accidents like fire and exploding, splattering sewage, etc. If you buy $20,000 to $50,000 worth of coverage then you have to pay at least $40 to $100+ a year.

5. Personal Accident Insurance

This type of insurance covers you if you die or become permanently disabled in an accident. Therefore, it is a very important insurance type and for this type of insurance, you should budget about $80 to $180 a year.

6. Disability Insurance

If you buy disability insurance, then you will be getting paid if you become disabled. If you are planning to buy this type of insurance then you should budget at least $200 a year.

Benefits Of Various Insurance Plans Of Singapore

1. Benefits Of Integrated Shield Plans

Average Benefits	Standard Plan	Ward B1	Ward B1	Private Hospital
Annual Limit	S$150,000	S$300,000	S$550,000	S$1,025,000
Cancer Treatment	S$5,200/session	As Charged	As Charged	As Charged
Kidney Dialysis	S$2,750/month	As Charged	As Charged	As Charged
Inpatient Psychiatric	S$17,500	S$10,200	S$91,643	S$174,167
Daily Ward Treatment	S$1,700/day	As Charged	As Charged	As Charged
Pre-Hospitalization Benefits (Days)	N/A	90	120	150
Post-Hospitalization Benefits (Days)	N/A	90	180	273

Rider Benefits

Rider Benefits	Amount
Parental Accommodation in Ward	S$630
Ambulance/Taxi Coverage	S$147
Alternative Treatment	S$5,521
Emergency Outpatient	S$1,650

2. Benefits Of International Health Insurance                    

Benefit	Industry Average
Annual Limit	S$2,029,054
Hospitalization Charges	As Charged
ICU	As Charged
Physician Consultation	As Charged
Cancer Treatment	As Charged
Daily Hospital Cash	S$191
Pregnancy Complications	S$1,788,549
Inpatient Psych Treatment	S$ 1,020,944

List Of Best Insurance Plans In Singapore

Plan	Company Name	Best For
HealthShield Gold Max	AIA	Inpatient/Day surgery, outpatient treatment
PRUShield	Prudential	Pre and post hospitalization, Inpatient/Day surgery
IncomeShield	NTUC Income	Outpatient treatment, organ transplant
SupremeHealth	Great Eastern	Outpatient treatment, high claim limit per policy year
Shield	AXA	Cheapest premium, emergency overseas treatment
Raffles Shield	Raffles	High claim limit per policy year, pre and post hospitalization
MyShield	Aviva	Family protection

FAQs About Insurance Costs In Singapore

References: 1 https://blog.moneysmart.sg/life-insurance/how-much-to-spend/
References: 2 https://expatliving.sg/health-insurance-costs-in-singapore-trends/

Last Updated on August 6, 2022 by Ana S. Sutterfield