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.
Jump To A Section
- 1 How Much Of Your Income Should You Spend On Insurance?
- 2 Insurance Cost In Singapore
- 3 Benefits Of Various Insurance Plans Of Singapore
- 4 List Of Best Insurance Plans In Singapore
- 5 FAQs About Insurance Costs In Singapore
- 5.1 How Much Is Health Insurance In Singapore?
- 5.2 How Does Health Insurance Work In Singapore?
- 5.3 Can Foreigners Buy Health Insurance In Singapore?
- 5.4 How Much Does Private Health Insurance Cost In Singapore?
- 5.5 What Is An Integrated Shield Plan?
- 5.6 Is It Compulsory To Have An Integrated Shield Plan?
- 5.7 Can I Use MediSave To Pay For My Health 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
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|
|Cancer Treatment||S$5,200/session||As Charged||As Charged||As Charged|
|Kidney Dialysis||S$2,750/month||As Charged||As Charged||As Charged|
|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|
|Parental Accommodation in Ward||S$630|
2. Benefits Of International Health Insurance
|Hospitalization Charges||As Charged|
|Physician Consultation||As Charged|
|Cancer Treatment||As Charged|
|Daily Hospital Cash||S$191|
|Inpatient Psych Treatment||S$ 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|
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 August 6, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.