STRESS-TEST INSURANCE COVERAGE
If you’re looking to ensure coverage is sufficient for you and your family, here are three things to do.
First, evaluate if your plans fit with your life stage and goals. Your needs will have changed if your policy was passed down from your parents, or if there are major changes in family planning and career priorities.
Second, review your liquidity in light of the shift towards co-payment. Assess your tolerance for paying out-of-pocket, and whether your family will have sufficient resources to tide through a period of unemployment or no-pay leave, if needed for recovery. Even when you are healthy and don’t have hospital bills, premiums will still go up in the long run. Buffer enough resources, lest you lose your coverage when you most need it.
Third, think of insurance as part of a financial strategy. Most people accumulate insurance, investment and savings products over time without a coordinated financial strategy. Overlapping products can add unnecessary costs or lock up funds that could go towards saving for retirement or paying for healthcare.
Beyond costs, treatment preferences remain a key consideration regardless of policy structure. Whether it’s access to a specific hospital, doctor, or alternative treatment options like TCM, more out-of-pocket exposure means preferences will have financial implications.
Don’t overlook hidden costs like transport and caregiving. Major illnesses or accidents could require significant post-hospital care that may not be covered by insurance: Care in a nursing home, for instance, can cost S$3,000 to S$5,000 per month and persist for years.