How Health Insurance Complements the Financial Plans of Singapore Youths
Getting health insurance cover is an important part of financial planning, even for young adults who live in a country like Singapore where the government actively exhorts healthy living as a priority and maintains a world class medical hub. It is understandable why young adults in Singapore find it difficult to wrap their minds around the idea of getting health insurance, especially since they live in one of the cleanest countries in the world.
However, getting health insurance is not just about protecting yourself today, it is also about planning ahead and protecting yourself in the future. Below are some examples of how youths in Singapore can benefit from having health insurance in place:
1) Protecting One’s Finances against Major Illnesses
Most health insurance covers in Singapore come with a waiting period – a stipulated period of time (e.g. – 30 days) immediately after inception or sometimes after the last claim – when the insurer will not pay for claims made by the insured. As no one knows at which age a major illness will strike, getting past the waiting period earlier beats having to deal with it later. For the same reason, although chronic diseases, such as high blood pressure and cholesterol, typically surface after 30 years of age from a statistical point of view, health insurance can protect the much-needed savings of individuals aged below 30 from getting drained in the event of large medical bills.
2) Less Reliance on Employers’ Health Insurance Benefits
The lure of increased salary and opportunities to advance their careers cause many young working adults in Singapore to change employers. In changing employers, the departing employee loses any group insurance cover provided by that employer, and even if the next employer provides health insurance cover, pre-existing illnesses are likely to be excluded. Therefore, to secure peace of mind, having personal health insurance in place means that the employee will be less dependent on the medical benefits provided by his/her employer(s) and can better plan his/her career without having to take his/her employers’ health insurance benefits as a key factor. In addition, a person covered by health insurance can enjoy its benefits in between jobs.
3) Saving Money and Better Value
Insurance companies generally regard younger customers as healthier (due to population statistics) and less likely to make claims soon. As such, young adults enjoy lower premiums for the same sum assured as someone of a higher age, so young adults get relatively better value in comparison. However, do note that lifestyle differences may still come into play. For example, at any given age, a non-smoker would enjoy lower premiums than a smoker due to the latter’s higher chances of getting, and succumbing to, respiratory illnesses.
The above are just a few key benefits of getting health insurance. early in life. While financial protection is a more tangible benefit, peace of mind is a powerful intangible benefit to one’s mental well-being that comes with having the right insurance in place. As illness can strike any time and any age, being covered for most illnesses helps to ringfence one’s savings against the need to get proper medical attention for covered illnesses.
Engage an independent financial adviser now to plan ahead and put your health insurance cover in order!
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Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs.