Healthcare in Singapore has become expensive nowadays. It has become mandatory to get a health insurance in order to manage expenses during unfortunate circumstances. There are two different aspects, buying a health insurance and buying the right health insurance. Yet, invariably most of us buy health insurance for wrong reasons. It’s not correct to buy a health insurance without even knowing what to avoid and what to consider while doing so. If you are guilty of the same or if you are planning to buy health insurance, then take a look at the most common mistakes that you should avoid while buying health insurance.
- Failing to do research on various insurance products: Many prefer to buy health insurance from the first insurer who contacts you because it seems convenient, and insurance products are moderately difficult to compare. Another reason for not comparing is you may have a good friend who suggested to pick a specific health insurance policy. Regrettably, that policy is the best one for his/her requirement, and may not be so for you.
It is a necessary step to compare various products from different insurance providers to avoid wastage of money. You should always compare insurance plans as per your specific requirements.
- Insufficient coverage: The most common mistake is not selecting the correct coverage because you don’t know how much cover you actually need. The coverage must be determined based on several aspects like:
- Level of protection you and your family need
- Your financial stability
- Your sources of income
- Your medical history
- Not checking the terms and conditions of your policy: Not all health insurance policies cover all types of health conditions. The consequences of not checking the terms and conditions of your policy can be huge. You might be paying the premium for years but you will not be eligible to claim your medical expenses if that disease/type of health condition was excluded from your policy terms. Hence, it is important to read and understand your policy inclusions.
- Getting over-insured: It is difficult to find an all-in-one policy. The best way is to prioritise your insurance requirements depending on your life stages. Getting over-insured at the adult stage of your life doesn’t make any sense, unless you are dealing with a certain critical health condition. Your insurance needs may differ from time to time, so always get the policy that you need and be open for renewal whenever required.
- Getting under-insured: Underinsurance is dangerous too. Imagine you have a health insurance and you undergo treatment considering your insurance policy will cover you, and later you realise it does not come under your plan.
- Assuming Medishield Life is sufficient: In case of medical emergency, Medishield Life helps you cover your expenses. Medishield Life offers subsidised treatments in public hospitals, higher payouts, and partly covers stays at private hospital wards. But, this is not sufficient since it only covers hospitalisation needs. You must get other coverages like disability, death or critical ailment from private insurers.
- Selecting the cheapest one: Regardless of the type of insurance, the biggest mistake people make is to go for the insurance policy that is the least expensive. The best policy must be determined not on the cheapest premium but based on the maximum coverage.
- Trusting the agent blindly: Insurance agents will often push you to buy their policies intending to earn commission, rather than assisting you in getting the best policy. Even if your agent is quite honest, he/she will not have proper insights into your life, health condition, and affordability. Hence, your agent may not be the ideal person to recommend a policy to you. It’s your duty to analyse your requirement and choose wisely.
- Hiding your medical history: In Singapore, while buying health insurance you will be asked to fill in a questionnaire declaring your medical history. In case of a pre-existing condition, insurance companies might increase your premium. Don’t lie or hide your medical history from your insurance company to avoid the increase in premium. Not declaring your pre-existing condition beforehand will not cover you against future complications arising from that risk.
- Buying late: Insurance providers raise the premium according to your age, because as you get older, you may face higher health-related concerns. Hence, it is advisable to buy a long-term health insurance when you are young. With this, you can lock-in the low premium for long terms.
Although choosing a health insurance plan is a time-consuming process, it must be done with due diligence. In order to avoid the above mentioned common mistakes, you must consider all your requirements, financial commitments, and consult your trusted advisors before finalising an insurance policy.