The average lifespan in Singapore is increasing. According to the Department of Statistics’ (DOS) latest data, life expectancy at birth stood at 80.7 years for males and 85.2 years for females in 2023. Comparatively, 79.2 years and 84 years were reached more than a decade ago.
At the same time, the expense of healthcare has increased faster than the general cost of living.
Data from DOS show that between 2001 and 2021, the Consumer Price Index for healthcare rose by 54.8%, from 64.340 to 99.579. Accordingly, a typical healthcare item or procedure that cost $10,000 in 2001 would have cost $15,480 in 2021.
As we get older, we become more vulnerable to health problems, and the rehabilitation process takes longer. Having insurance will provide you and your family more confidence to enjoy your latter years.
Do you have MediShield Life?
The Central Provident Fund (CPF) administers MediShield Life, a mandated health insurance program for Singaporeans and permanent residents (PRs). It includes certain outpatient procedures including chemotherapy and renal dialysis as well as subsidized care in public hospital B2 or C-class wards.
MediShield Life additionally offers partial payment options for medical costs spent in higher-class wards of both public and private hospitals.
This fundamental policy offers lifelong protection and can be purchased in full with MediSave funds. But is it enough?
If you choose to seek medical assistance from private hospitals and recuperate in premium wards, you should supplement your coverage with Integrated Shield Plans (IPs).
IPs, which are offered by private insurance providers, cost more but give coverage above and above MediShield Life. The yearly premiums can be paid with MediSave money, however there are extra withdrawal restrictions. After then, the excess must be paid in cash.
Starting last 2021, all IP riders—including renewals of previous IPs with complete riders (which included both deductible and coinsurance)—requires a 5% copayment. If policyholders seek treatment from the insurance company’s approved healthcare providers, these payments are restricted to a maximum of $3,000 per policy year.
This policy was put in effect to make sure that stakeholders take a more active role in managing their healthcare costs, even if individuals who purchased full IP riders prior to this had their medical fees entirely covered.
What other government programs are applicable to me in my golden years?
CareShield Life and ElderShield
All Singaporeans and PRs have access to the long-term disability insurance policies ElderShield and its improved variant, CareShield Life.
When there is a “severe disability,” they provide financial assistance. This is characterized as the inability to carry out at least three of the six daily life tasks—washing, clothing, walking, feeding, transferring, and using the restroom.
Compared to the ElderShield 300 and 400 schemes, which provide monthly disability payments of $300 or $400, respectively, CareShield Life gives higher monthly disability benefits starting at $600 in 2020 and increasing over time.
CareShield Life offers these rewards for life, whereas ElderShield only offers them for up to 60 or 72 months.
However, in December 2021, Singaporeans and PRs born between 1970 and 1979 who are already covered under the ElderShield 400 plan and are not severely disabled would have been recruited automatically into CareShield Life.
Singaporeans born in 1979 or earlier are eligible for participation incentives worth up to $2,500 from the government if they join CareShield Life by December 31, 2023. Merdeka or Pioneer generation members are eligible for an additional $1,500 in incentives.
What other ways can I do to increase my access to healthcare?
Consider the following four categories of protection:
Critical Illness Insurance:
When a critical illness is discovered, critical illness insurance provides a lump sum payment. Health coverage varies from policy to policy.
Most Singaporeans lack adequate coverage for serious illnesses.
There is a genuine chance that a serious sickness could cause financial ruin due to debts or the loss of a steady salary.
Disability income insurance:
Offers a monthly payment in the event that an injury or sickness renders you disabled and unable to work.
They normally continue for five to ten years, or until you are 60 or 65, and they typically cover up to 80% of your monthly pay.
Personal accident insurance:
Coverage for medical expenses associated with injuries brought on by mishaps like falling from a great height or drowning.
Some of these plans also include coverage for infectious ailments including dengue, chicken pox, and hand, foot, and mouth disease.
Hospital cash insurance:
Provides you with a certain sum of money for each day you are admitted to the hospital.
Self-employed, freelancers, and part-timers who are not eligible for paid sick or hospital leave may think about obtaining a suitable plan that includes hospital cash benefits.
Consider a plan that strikes a balance between your needs and your budget when choosing from the variety of plans that are offered. Be aware that some of these policies might not cover pre-existing conditions.
Ready to begin?
To get a financial health check and learn how to properly organize your funds, talk to financial advisor right now.