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Health Insurance 101: Steps to Take for Millennials in Singapore

Health Insurance for Millennials, Health Insurance

Many millennials in Singapore do not have insurance cover, quoting various reasons as to why they do not. The cover we are referring to here is different from the basic cover that the government provides. Many choose to go for the Integrated Shield Plan (IP), which provides more comprehensive health insurance than MediShield Life. 

However, millennials should understand that it is cheaper to purchase these premiums earlier in life. Typically, the more one ages, the more the body is prone to illnesses. 

If you’re interested in purchasing an insurance cover, the process is simple. However, it also requires a thorough background check to come up with the best decision. To do that, the following steps may be helpful.

Understanding What is Health Insurance

Nobody knows when they will get sick and how severe the sickness will be. Also, accidents can happen in our day to day life. Therefore, one needs a plan for such unexpected situations apart from an emergency account.

The plan for such situations is called health insurance. Typically, it covers expenses arising from sickness and injury.

Types of Insurance

Understanding health insurance includes knowing the types of insurance that are available to the potential buyer. There are basic types of insurance offered across the industry. There is basic medical, supplemental medical, disability income, long-term care, hospital, and critical illness.

However, some insurers go the extra mile in providing hybrid covers with specific objectives. Usually, such policies are marketing tools designed to attract more customers to the business. However, you may be able to find a premium that best suits your needs here. 

Insurance Premiums

Once you have a rough idea of insurance and the types of covers available, it is essential to get a grasp of insurance premiums. Basically, the insurance premium is the money that one parts with in exchange for an insurance policy. 

Basic & Additional Coverage

In particular, one needs to differentiate between basic coverage and extra coverage. For instance, basic coverage takes care of basic illnesses and perhaps some inpatient expenses. However, the cover might not go as far as including cases like surgery, or a caesarian section for pregnant policyholders.

In essence, this implies that potential policyholders need to know if there are any policy exclusions in the cover. Understanding the difference between basic and extra cover will illuminate on the subject of insurance premiums. This is because insurance premiums for additional coverage rise very quickly.

Here, one will also have to decide on the best plan that suits their needs. In particular, one will have to engage insurance agents and enquire on their plans and pricing.

Hunt for Offers Before Making a Purchase

The insurance market is quite competitive. Therefore, insurers offer various enticements and bonuses to attract customers. Frequently, such benefits are pocket friendly, especially for millennials want to save in terms of finances.  

While shopping for the best policy, one might utilise our portal that helps with comparing policies.

Sim Kwang Meng

Chief Operating Officer

Mr. Sim has more than 40 years’ of experience in General Insurance. He joined Pana Harrison since 2003, and specialised in Property and Casualty. Prior joining Pana Harrison, he was AGM for Commercial Union Assurance Pte Ltd.