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

Insurance Cost 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?

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

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 BenefitsStandard PlanWard B1Ward B1Private Hospital
Annual LimitS$150,000S$300,000S$550,000S$1,025,000
Cancer TreatmentS$5,200/sessionAs ChargedAs ChargedAs Charged
Kidney DialysisS$2,750/monthAs ChargedAs ChargedAs Charged
Inpatient PsychiatricS$17,500S$10,200S$91,643S$174,167
Daily Ward TreatmentS$1,700/dayAs ChargedAs ChargedAs Charged
Pre-Hospitalization Benefits (Days)N/A90120150
Post-Hospitalization Benefits (Days)N/A90180273

Rider Benefits

Rider BenefitsAmount
Parental Accommodation in WardS$630
Ambulance/Taxi CoverageS$147
Alternative TreatmentS$5,521
Emergency OutpatientS$1,650

2. Benefits Of International Health Insurance                    

BenefitIndustry Average
Annual LimitS$2,029,054
Hospitalization ChargesAs Charged
ICUAs Charged
Physician ConsultationAs Charged
Cancer TreatmentAs Charged
Daily Hospital CashS$191
Pregnancy ComplicationsS$1,788,549
Inpatient Psych TreatmentS$ 1,020,944

List Of Best Insurance Plans In Singapore

PlanCompany NameBest For
HealthShield Gold MaxAIAInpatient/Day surgery, outpatient treatment
PRUShieldPrudentialPre and post hospitalization, Inpatient/Day surgery
IncomeShieldNTUC IncomeOutpatient treatment, organ transplant
SupremeHealthGreat EasternOutpatient treatment, high claim limit per policy year
ShieldAXACheapest premium, emergency overseas treatment
Raffles ShieldRafflesHigh claim limit per policy year, pre and post hospitalization
MyShieldAvivaFamily protection

FAQs About Insurance Costs In Singapore

How Much Is Health Insurance In Singapore?

The exact answer to this question depends on various factors. For example, a 35-year-old Singaporean individual that does not smoke would cost S$83 for an Integrated Shield Plan (IP) that would cover up to the B1 ward.

How Does Health Insurance Work In Singapore?

If you are a Singaporean resident then you will automatically be entitled to basic governmental health insurance called MediShield Life. If you want to increase your health insurance coverage then you have to buy additional private insurance plans from private insurance companies. You can buy Integrated Shield Plans to increase your coverage.

Can Foreigners Buy Health Insurance In Singapore?

In Singapore, a foreigner won’t be qualified for the governmental healthcare insurance plan. However, the foreigners can get health insurance plans that are meant for foreigners from various private insurance companies.

How Much Does Private Health Insurance Cost In Singapore?     

Currently, Singapore is ranked 9th in the world based on the average price of plans for individuals. Now the average private health insurance plan is priced at USD 4,520. On the other hand, Singapore ranked 6th in the world for the average price of plans for families and it is priced at USD 13,955.

What Is An Integrated Shield Plan?

The integrated shield plan is an optional health coverage available in Singapore and it is provided by most of the private insurance companies of Singapore including AIA, Aviva, AXA, Great Eastern, FWD, Prudential, NTUC Income, Raffles Medical Group, etc.

Is It Compulsory To Have An Integrated Shield Plan?

No, it is not compulsory to have an Integrated Shield plan because all the Singaporeans and Permanent Residents (PRs) have basic coverage from MediShield Life. However, if you want to increase your health insurance coverage then you can buy an Integrated Shield plan.

Can I Use MediSave To Pay For My Health Insurance?

Yes, you can use MediSave to pay for MediShield Life. Moreover, you can also use MediSave to pay for the Integrated Shield plan (IP) which is very convenient.

Last Updated on October 17, 2021 by Musa D

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