If health insurance is on your list of things to look into, failing to place it at the top of that list could cost you your retirement savings. A sports injury while playing tennis could run up thousands of dollars a year in physical therapy payments. Even with insurance, your deductible – what you are required to pay before insurance coverage kicks in – could run into hundreds of dollars a month. Even with basic insurance, if you ever undergo cancer treatment, you could face a monthly deductible of $3000 for chemotherapy if you do not purchase extra coverage.
If you do maintain good health for many years to come, the premiums for health insurance quickly rise with age. If you are approaching 50 and seeking coverage, you could be charged three to five times higher premiums than if you had purchased insurance in your thirties. While it may sound like scaremongering, the reality is health insurance is among the most important purchase you will make in your lifetime.
With the help of the Internet, you can easily compare plans and Singapore health insurance coverage options, speak to online representatives and sign up for health coverage. The following brief guide alerts you to what to look for while shopping around.
What Is Health Insurance?
Heath insurance provides coverage for expenses arising from sickness or injury. Insurance may cover losses and expenses related to medical care, accidents, disability, and accidental death and dismemberment. The insurer estimates the risk of these events arising in a population and the associated costs. A monthly insurance premium is then charged to individuals or their sponsors (a company, for example) who seek to be insured in the case of these eventualities. Types of health insurance include major medical, supplemental medical, disability income, long term care, hospital, and critical illness. Supplemental insurance is intended to cover expenses not taken care of by the main insurance policy, and may include emergency services, surgical implants, private nursing or dental coverage.
What To Look Out For When Buying Health Insurance?
Insurance policies generally have exclusions for expenses they do not cover. When buying health insurance coverage, never ever assume anything. If you are pregnant, your health insurance likely covers basic charges. Some insurers, however, may not cover pregnancy complications or a caesarean section. These and many other services are offered through extra insurance coverage.
A common costly mistake is to buy basic coverage – whew! What a relief to be finally covered – and put off extra coverage for a rainy day. Premiums for extra coverage also rise quickly with age {see the Prudential premiums chart for extras below}.
Also consider insurance coverage for when you are ill and cannot continue to pay important bills, including your insurance premiums. When a family member has an illness such as Alzheimer’s disease in old age, it is nice to know that monthly payments will be covered even if they are forgetful.