An expert explains the different health insurance policies

Text Life Insurance Association of Singapore

Before you hesitate about getting health insurance, start by asking yourself the following questions:

• What is the current condition of my health?
• What will happen to my and my family if I become seriously ill?
• Will I be able to support my family if I fall sick or become disabled?
• Will I be able to afford medical treatment without any health insurance?

The fortunate ones would answer "yes" to the last two questions. But did not, then you should seriously consider getting some form of health insurance coverage for yourself as well as your dependents.

Health insurance gives you and your family protection against financial loss arising from accident, illness or disability.  It can provide income during your hospitalisation or for the duration of your disability, or cover the cost of your medical treatment or nursing care.  You cannot predict the amount of your medical bills, but with health insurance, much of these costs can be covered by a third party. 

It is important for you to take the time to figure out what you need and how much you need before you buy health insurance. 

If you are looking to... You should consider Cover your medical expenses Medical Expense Insurance Protect your income when you are unable to work due to illness or disability Disability Income Insurance Receive a fixed amount of cash when you are in hospital Hospital Cash Insurance Reduce the financial impact when you are diagnosed with a major illness (eg. cancer) Critical Illness Insurance Pay the cost of care should you be too weak to look after yourself Long term Care Insurance

Remember that all health insurance plans have their strengths and weaknesses and there is no such thing as a "best" plan.  A plan that is right for a single person may not be right for a person with a family, and a plan that is right for one family may not work for another.

How Much Insurance Cover Do I Need?
Before deciding the amount of cover you need, it is best that you consider the quality of healthcare service and the level of medical insurance cover that you would want in the event that you fall ill or injured in an accident. The Life Insurance Association of Singapore states that you should always check that the plan benefit limits for treatment and hospital charges are adequate to cover the charges that you are likely to meet in the type of hospital and ward class of your choice.

Seek the advice of a financial adviser if you are unsure whether or not you are able to find a balance between purchasing enough cover and your ability to continue paying the premiums over a long term.

Insurance for Dependents
If you have children, you should extend the coverage provided by your medical treatment or hospital cash insurance policies to them. Children are more prone to accidents and illnesses that may require extensive treatment or hospitalization. The same can be said for your aged parents if they are dependent on you for their financial needs.

Age Limit for Insurance Coverage
Most insurance companies impose an age limit beyond which they will not accept applications for health insurance. The age limit can vary from product to product, even for the same insurance company. There are a few health insurance products that cover you for life, but most have an age limit when the insurance will cease. You must check these details when you apply for insurance.

Exclusions from Coverage
There are several scenarios in which policyholders have been unable to claim for events which they thought they were covered for.  In the case of medical expenses and hospital cash plans, two of the most common relate to exclusions in policies, and disclosure procedures. 

Exclusions
All medical and hospital insurance products will carry some exclusions setting out the circumstances under which benefits will not be paid.  The most common exclusion is the “pre-existing condition” exclusion.  This exclusion means that any illness or disability that you have, or have had, when you sign up for the product will not likely be covered. Exclusions vary from product to product, so you must read the policy contract carefully to find out exactly what you are or are not covered for.

Disclosure
An insurance contract is based on trust.  When you apply for medical or hospital insurance, you must provide all information asked of you.  This could include your age, occupation, and any history of illnesses, medical conditions or disabilities. The insurance company will then assess the given information to decide whether or not to accept your application.  If you leave out important information in completing your application, the policy may not cover you and, as a result, your claims may not be met.   

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