Health insurance can play a critical role in managing medical expenses and providing financial security during times of illness or injury. In Singapore, MediShield Life offers basic coverage for large medical costs, ensuring all citizens have access to fundamental protection.

However, there are various types of health insurance plans available, each designed to meet different needs. Some cover hospital bills, while others provide cash payouts for treatment or long-term care. Choosing the right policy involves understanding your options and evaluating what works best for your circumstances.

This guide will help you navigate the benefits, importance, and coverage options of health insurance so you can make an informed decision.

The Vital Role of Health Insurance / Importance of Health Insurance for Singaporeans

Navigating healthcare in Singapore can feel like walking a financial tightrope. With rising medical costs and basic coverage like MediShield Life only scratching the surface, having the right health insurance is your safety net. 

It's not just about covering bills—it’s about securing access to quality care, easing financial stress, and ensuring peace of mind for you and your loved ones. 

Here’s why getting the right health insurance matters:

Rising Healthcare Costs

Healthcare in Singapore is world-class—ranking second globally in the Medical Tourism Index, just behind Canada. This reflects the exceptional quality of care, accessibility, and innovation that make Singapore a top destination for medical treatment. However, these high standards come with substantial costs.

Cardiovascular diseases, which are responsible for 30.9% of deaths in Singapore, are a prime example of the need for adequate health coverage. Procedures like coronary artery bypass graft (CABG) surgery, commonly performed to treat heart conditions can cost between S$26,000 and S$39,000, excluding GST. 

Similarly, musculoskeletal conditions are also prevalent, requiring costly interventions such as total knee replacement surgery. The expense for this procedure in private hospitals ranges from S$19,000 to S$32,000. To get a clearer understanding of potential expenses, you can use the MOH Hospital Bill Estimator.

And that’s where health insurance becomes not just a luxury, but a necessity. It helps alleviate the financial burden, covering anything from unexpected hospital stays due to dengue fever (still a common health concern in Singapore) to specialized treatments for chronic illnesses like diabetes, which affects over 1 in 7 adults in Singapore.

 

MediShield Life Is Often Not Enough

All Singaporeans are covered by MediShield Life, a government plan designed to handle large hospital bills. While MediShield Life provides essential coverage for Singaporeans, it is intended to cover only a basic level of care. The plan helps with large hospital bills, but when it comes to more expensive treatments or private hospital stays, the coverage often falls short.

Many treatments, especially those in private hospitals or requiring specialized care, may exceed its coverage limits. Supplementary plans, like Integrated Shield Plans, are often necessary to fill these gaps.

For example, MediShield Life may only cover a fraction of the cost of specialized treatments like cancer therapies or elective surgeries, which can easily reach tens or even hundreds of thousands of dollars. If you need treatment in a private hospital—whether for routine surgery or a specialized procedure like joint replacement—MediShield Life’s payout limits often won’t cover the full cost. 

A 5-day stay in a private hospital can easily cost you S$10,000, with costs for major surgeries like a hip joint replacement ranging from S$20,000 to S$30,000.

To bridge this gap, many Singaporeans opt for private health insurance, like Integrated Shield Plans. These plans provide coverage for a wider range of services, including private hospital treatment and higher coverage limits for case-specific care. For instance, if you're undergoing cancer treatment at a private hospital, an Integrated Shield Plan can help reduce the out-of-pocket costs, which can otherwise exceed $100,000 depending on the type of treatment required.

In short, private health insurance brings the flexibility needed to access a wider range of treatments, including those recommended by their doctors but not covered under Integrated Shield Plans. By providing broader coverage options, private health insurance allows patients to make medical decisions based on their specific needs rather than limitations in policy coverage.

Is it Necessary to Have Health Insurance in Singapore?

In Singapore, health insurance is not mandatory for all residents, but there are certain requirements for specific groups. Here’s a breakdown:

  1. MediShield Life is the mandatory, basic health insurance plan for all Singaporean citizens and permanent residents. It provides coverage for large hospital bills and automatic enrollment for all Singaporeans and PRs. While it covers a significant portion of medical expenses, it doesn’t cover everything, especially for treatments at private hospitals or specialized care. However, it does provide support in serious conditions, such as covering hospital stays in certain cases or partially funding surgeries in public hospitals.

  2. Integrated Shield Plans (Supplementary Insurance) are not mandatory, but many Singaporeans opt to purchase supplementary health insurance through Integrated Shield Plans. These plans provide additional coverage to fill gaps in MediShield Life, covering private hospital stays and specialized treatments. They are highly recommended but not required by law.

  3. Many employers in Singapore offer group health insurance as part of their benefits, typically complementing MediShield Life by covering additional costs like private hospital stays or specialist treatments. However, offering such insurance isn’t mandatory, and coverage varies significantly across companies. Employees should review their plans carefully, or consult with an insurance agent, to understand any gaps and how these benefits align with MediShield Life’s basic coverage or if they need additional insurance.

In summary, while basic health insurance (MediShield Life) is mandatory ensuring essential medical help, supplementary plans like Integrated Shield Plans are optional but highly advisable to secure broader coverage.

Who Should Get Health Insurance?

Health insurance is essential for nearly everyone, but there are specific groups of people who particularly benefit from having comprehensive coverage. Here’s a look at who should consider getting health insurance:

All Singaporeans and Permanent Residents

If you're a Singaporean citizen or permanent resident, you’re already covered by MediShield Life, a basic health insurance plan. However, MediShield Life might not be enough to cover all your medical needs, especially if you require treatments at private hospitals or specialized care. Supplementary plans like Integrated Shield Plans can provide wider coverage, ensuring you are better protected.

Young Adults and Families

Young, healthy individuals might feel they don’t need health insurance right now, but unexpected medical events can happen at any age. Investing in health insurance early on can provide long-term financial security and prevent high costs down the road. For families, having the right coverage ensures that all members, from young children to older relatives, are taken care of in times of illness.

People with Pre-Existing Health Conditions

If you have a pre-existing medical condition or a family history of certain illnesses (e.g., cancer or heart disease), health insurance becomes even more critical. While some health conditions might be excluded from coverage under certain policies, getting insurance as early as possible ensures that you're covered for other potential health issues that could arise in the future.

People Who Want Private Healthcare Access

If you prefer treatment at private hospitals or want faster access to specialists and shorter waiting times, health insurance is a must. MediShield Life typically covers public hospitals, but it won’t cover the costs of private hospital stays, which can be much higher. Supplementary plans like Integrated Shield Plans can help with this, ensuring you have access to a wider range of healthcare options.

Frequent Travelers or Expats

If you're an expat or someone who frequently travels abroad, getting health insurance that includes overseas coverage is highly recommended. In case of a medical emergency or accident while traveling, having the right insurance can prevent hefty bills and give you access to treatment wherever you are.

Anyone who wants to safeguard their health and finances should consider getting health insurance. Whether you're young or old, healthy, or managing a medical condition, health insurance has multiple vital benefits that we will cover below.

What Are the Advantages of Health Insurance?

1. Financial Protection Against High Healthcare Costs

Health insurance protects you from the heavy financial burden of medical treatments, including hospital stays, surgeries, and advanced care. Private health insurance, in particular, offers enhanced financial protection, covering a wider range of treatments and providing higher claim limits than basic government plans.

For instance, cancer treatment at a private hospital can exceed S$100,000, while joint replacement surgeries typically cost between $20,000 and $30,000. Health insurance, especially through supplementary plans like Integrated Shield Plans, helps cover these significant expenses, offering financial relief during tough times.

2. Access to Quality Healthcare

Health insurance gives you access to a wider network of healthcare providers, including private hospitals and specialized treatments. This flexibility ensures that you're not confined to public healthcare options, which can have longer waiting times for certain procedures, such as elective surgeries.

With the right health insurance plan, you can opt for treatment at a private hospital without the worry of exorbitant daily charges, which can start from S$800 and can reach up to $2,000 per day.

3. Comprehensive Coverage for Various Medical Needs

Health insurance plans in Singapore offer extensive coverage for a range of health-related needs, from hospital stays and surgeries to critical illnesses and long-term care. Compared to MediShield Life, private plans are customizable and tailored to provide additional benefits, such as outpatient specialist visits, advanced diagnostic tests, and private maternity care.

Critical illness plans, for example, can be particularly valuable, providing lump-sum payouts for life-threatening conditions like heart attacks, strokes, or cancer. These payouts help ease the financial burden during treatment and recovery, allowing individuals to focus on healing instead of medical bills.

4. Supplementary Coverage for Gaps in MediShield Life

While MediShield Life provides a basic level of coverage, it often falls short for illness-specific care or private hospital treatments. This is where supplementary plans, like Integrated Shield Plans, come in. These plans bridge the gap by offering higher coverage limits and covering more advanced medical treatments.

For example, Integrated Shield Plans often provide more extensive coverage for critical illnesses, such as cancer treatment, which MediShield Life may only partially cover.

5. Peace of Mind and Security

Health insurance isn’t just about covering medical costs. It also offers peace of mind during life’s toughest moments. When you or a loved one faces a health challenge, knowing that you're financially protected can lift a huge weight off your shoulders. Private health insurance amplifies this benefit by providing a higher level of security, knowing that you can receive superior healthcare without financial stress.

When illness or injury strikes, the last thing you want to think about is how to pay for treatment. Whether it’s a hospital stay, surgery, or specialized care, health insurance ensures that you won’t have to bear the financial burden on your own. 

How Much Health Insurance Do You Need?

When choosing health insurance in Singapore, several factors affect the coverage and premiums. 

  • Age plays a major role, with older individuals typically needing higher coverage. 
  • Health conditions are another important factor—those with chronic illnesses or pre-existing conditions may require more extensive policies. 
  • Lifestyle choices, including occupation and travel habits, also influence the type of coverage needed. 
  • Family considerations, such as coverage for children or maternity care, are key for those with dependents. 

Lastly, whether you prefer private or public healthcare options will determine the coverage level.

In conclusion, how much health insurance you need depends on a variety of personal factors, including your health, age, financial situation, and lifestyle. It’s crucial to strike a balance between affordable premiums and better coverage to ensure that you are adequately protected without overextending your budget. 

For a tailored plan that fits your specific needs, contact us today to discuss the best health insurance options for you: https://ipg.sg/contact-us