You Could Be Paying 4 Times Too Much For Insurance!

Hospital plans are an absolute must in Singapore; with the average hospital bill being approximately $40,000, you must ensure that you are covered. Many expats want an international plan, as it often seems like there are more benefits. But, did you know that most international plans are around 4 times the price of local ones?

For the past two years (I can’t believe it’s been that long), we have been unable to leave Singapore due to Covid-19. This means that less people are able to travel freely to their home countries or on holiday, so why pay for an international insurance policy during this period?

The pros of an international policy are that you are covered worldwide at the same amount of coverage as you would in Singapore. However, this often means that the coverage you are offered is slightly lesser than local plans. Local hospital plans are often able to provide customers with maximum coverage, because there is not that extra risk of claiming abroad. Not only that, claiming through a local company is often a lot easier than with an international one, as you can directly contact your agent who is in the same time zone as you, instead of calling a hotline based abroad.

But what if I am hospitalised abroad and a have a local health insurance? Not to worry- did you know that most local plans cover hospitalisation abroad if it is due to an accident or emergency? But, if you are planning to be hospitalised abroad, I would suggest using a top-up insurance from that country, or a travel insurance.

Not only that, if boarders open it’s very easy to switch from a local plan to an international one. So, what is the point of paying for an international plan when you’re not going abroad?!

I did a comparison for myself on different insurance policies. I am currently 27, non-smoker, and I am paying $1,192 per year for a hospital plan that covers private hospitals. I am covered for $2,000,000 per policy year, and I can go to panel and non-panel doctors so long as I pre-authorise (something which very few companies offer). This is with a local company. When I check international plans, some are offering worldwide coverage of $1,000,000 for double the price. Some are offering $2,5000,000 coverage for over four times the price, of over $5,015 a year. This to me, seems like a no brainer to go for a local plan during this period than an international one.

As an expat, I feel that the term ‘international insurance’ is very alluring and may seem like the best option. But, if you delve a little deeper, read in between the lines and compare costing, it is quite often an unnecessary expense. Comment or contact me if you want to know how I planned my health insurance!

Why do Expats Need Financial Planning in Singapore?

As an expat, and a financial consultant, I have seen both sides of the coin when it comes to financial planning. 30% of Singapore’s population is made up of expats; and, being the fourth most expensive city in the world, means that non-residents really need to understand and adapt to the way of living here.

  Here are some main differences between locals’ and expats’ expenses that you should take into consideration.

Housing

Houses takes up the main bulk of expenses moving to Singapore; rental is expensive, especially in the downtown area, where a lot of offices and expat’s place of work is. Singaporeans and PRs can buy a HDB at an affordable price using their CPF money, but if an expat wishes to buy a property, they are not allowed to buy a HDB, and executive condos and landed property can be in the millions. Clearly, for a foreigner, more often than not purchasing a property is not an option. So be cautious when you begin to start renting here- the rental and bills should never exceed 50% of your monthly income.

School Fees and Childcare

If you are in Singapore with your family, you need to understand the differences between local and international schooling. As local schools are funded by the government, the fees are a lot cheaper than international schools. Sending your child to international school can cost roughly $2,000-$4,000 per month. While there is some debate as to which schooling system is better (which I’m not going to go into), it is certainly more economical to send your child to local school. However, do take note that in order for an expat child to go to a local school, they have to pass exams, and places are competitive.

Healthcare

I often hear outrage from expats in regards to the cost of healthcare in Singapore. In 2018 Singapore was announced to have the second-best healthcare in the world, second to Hong Kong. All of this comes at a price, and Singapore is not a welfare state. While there are government subsides for locals, it is crucial that expats get a comprehensive healthcare insurance. The average hospital bill in Singapore is about $40,000, so to avoid paying out of pocket- get insurance! I know it may seem annoying but paying for healthcare is unavoidable in this country.

A Holistic Need For Planning

While most expats earn more here in Singapore than they would back in their home country, it is imperative that we plan correctly and not live paycheque to paycheque. This may often be difficult; Singapore has a plethora of amazing places to eat out, visit and experience, which can really burn a hole in our pockets. Simply saving a bit each month is not enough. Think long term, why did you move to Singapore? What do you plan on achieving? And where to plan on staying for the rest of your years?

Long-term planning may be daunting, but there is a reason why Singaporeans are some of the most well-off people in the world…they did the uncomfortable and planned their finances early!

Diabetes In Singapore; The Bitter Sweet Truth

This month I’m going to focusing more on health in Singapore; my last article touched on mental health, and this one I wanted to talk about Diabetes.

  Singapore offers us a lifestyle that is often perceived to be luxurious- nice restaurants, bars and our weekends filled with relaxation. But, there is a darker side to this, and this is the increase of chronic diseases. In 2009, 1275 people were diagnosed with end-stage kidney failure…this increased to a shocking 1999 in 2017. And what was the cause of this? Not only the aging population, but also due to the high rate of diabetes.

  Here in Singapore, more than 400,000 people have diabetes. The PM has declared a ‘war on diabetes’ for the past 5 years, implicating stricter rules on advertising sugary food, and promoting nationwide health screening. The cost burden of diabetes, stood at more than $940 million in 2014. This is expected to increase to $1.8 billion by 2050. Not only does diabetes impact one’s own health; leading to heart conditions and strokes, it can complicate the treatment of other diseases, including Covid-19.

  So, what sort of things can we do as individuals to prevent this from happening? Of course, prevention is better than cure, so going for frequent health screenings helps tackle an unexpected diagnosis. Making small improvements to our diets will also prevent onset diabetes; managing and cutting back on our intake of sugary foods, drinks and carbohydrates, cutting back on smoking and being more active can help.

  Being more active not only helps with keeping fit and healthy, but it also improves productivity throughout the day and has a positive affect on your mental health. Exercise, along with a diet of lots of vitamins and fibre, can increase blood sugars and prevent pre-diabetes.

  Did you know that diabetes is a declined risk for most insurance critical illness plans on the market? With 3 in 10 Singaporeans having diabetes before 40, it’s obviously best to stop diabetes from happening before it affects your life! However, if you have diabetes, following the above tips can help manage your situation. Not only that, there is now critical illness and insurance coverage available to you!

Use the WhatsApp link below to contact me with your thoughts on diabetes, and if you have diabetes and need help getting cover, let me know!

How To Cope With Co-Payment

A few weeks ago, I wrote an article about the changes to medical insurance here in Singapore. If you haven’t read it yet, please go and have a read. As of April 2021, all insurance companies in Singapore will have to introduce a co-payment system; whereby the patient will have to fork out a portion of the hospital bill, which cannot be claimed or reimbursed.

So how do we tackle this problem? I will explore a couple of solutions here; long and short term.

Short-term Solution

To counteract the impact of losing some of your money to co-insurance and deductible on a medical bill, you can choose to include a hospital income plan to your insurance policy. This plan will pay you cash each day you are hospitalised and recovering at home, regardless of the cost of the hospital bill. This is a good way to fill the shortfall that you cannot claim, and it can be used for each time you are hospitalised. This is a quick and cheap option to save on that bit of cash.

Long-term Solution

Medical inflation increases year by year, and it is a problem that will not go away. Obviously, a hospital income plan can only go so far to counteract the rising cost of healthcare in Singapore. There are some ways in which you can prepare for a bit hospital bill in the long run.

Consider adding an extra plan to your insurance portfolio that is kept only for long term use and emergencies only. You can start by putting a small amount of your savings into a plan that will grow this cash for you at a better rate than the bank. Not only that, you can include insurance coverage in this plan. So, if the worst should happen and you are diagnosed with a critical illness or become disabled, you have a lump sum pay-out to supplement the cost of treatment, or help you with adjusting to your new lifestyle. No one likes thinking about these things happening, but it is best to prepare for the worst before you run into any problems. Hindsight is a wonderful thing, but it will not help when it comes to paying for a hospital bill.

I have posted a QR Code below to my WhatsApp should you have any questions or need help planning this out. If you would like me to review your current policy I would be more than happy to do that also.

Singapore: Important Updates to Insurance You Need To Know About!

As we all know, Singapore does not offer free healthcare; for locals, a lot is subsidised by their Medisave but for expats we must pay the full cost and wait for reimbursement from our insurers.

But there will be some new changes this year that all insurers in Singapore will have to follow, which will affect the consumer. Here’s what you need to know.

In March 2018, the Ministry of Health announced that insurers will have to stop offering plans that cover the full cost of hospital bills, and riders that do so will have to contain a ‘co-payment’ feature. This means that patients will have to foot part of their hospital bill, in order to keep healthcare costs sustainable.

From now on, if policyholders are hospitalised, they will have to pay 5% (at least) of the hospital bill. This co-payment is the government’s attempt to maintain policy premiums, and encourage responsible usage of the Singapore Healthcare System…doctors and patients alike.

So what can we, as a customer, do to ensure that we can keep up with these changes? The first is to double-check what your company provides in terms of insurance coverage, as company plans will often cover different things than personal. Second, ensure you have an accident plan that includes some medical reimbursement benefit. Therefore, if you are hospitalised due to an accident, you can claim somewhat off this plan. The third and, in my opinion, the best method is to ensure you have some sort of plan you can use as an ‘emergency medical fund’. Pay into this fund for a few years and, should anything happen, you can use this to cover the co-payment. It can also include features that will cover you should you become disabled, or suffer from a critical illness.

Have you readjusted your medical planning? Do you have any questions in regards to your insurance or future planning? If so, comment below or send me a message!