From pre- and post-hospitalisation benefits to disability income coverage, health insurance does much more than paying for your hospitalization bills.
Health insurance is one of the main pillars of financial protection as it helps to cover unexpected, high medical costs. It includes coverage for hospitalisation, critical illnesses, disabilities, and more. Health insurance can also help with:
-
Providing for you and your family if you’re unable to work due to a health condition such as a critical illness or a disability.
-
Keeping your investment and retirement plans intact. Medical treatments can be expensive. A good health insurance plan can help lessen the financial impact a healthcare emergency might have on your long-term financial goals.
-
Giving you peace of mind. Instead of worrying about the financial burden arising from high medical bills, you can focus on your recovery.
The most common types of health insurance are:
-
Hospitalisation insurance
-
Critical Illness insurance
-
Disability income insurance
-
Employee healthcare insurance
-
Maternity insurance, and
-
Specialised insurance for pre-existing conditions or high-risk professions
1. Hospitalisation insurance
Hospitalisation insurance helps reimburse you for medical bills when you’re hospitalised and for outpatient expenses like initial and follow-up consultations.
Every Singaporean and permanent resident has a basic version of hospitalisation insurance called MediShield Life. For more comprehensive coverage, consider getting an Integrated Shield Plan (IP) such as HSBC Life Shield which is designed to complement the MediShield Life plan.
HSBC Life Shield offers up to SGD2.5 million annual coverage limit plus a wide range of everyday healthcare needs from pre- to post-hospitalisation including exclusive rates for visits to panel general practitioners and specialists.
To further enhance your hospitalisation coverage and reduce the out-of-pocket expenses for co-payment, consider supplementing your IP with a rider. With the HSBC Life Enhanced Care rider, your 5% co-payment will be capped at SGD3,000 for your medical treatment with the HSBC Life panel of specialists or at restructured hospitals.
It’s worth noting that your IP premiums can be paid via MediSave while riders must be paid in cash.
2. Critical illness insurance
A critical illness (CI) insurance plan offers a lump sum payout if you’re diagnosed with a life-threatening illness such as major cancer, a stroke, or a heart attack. This gives you the flexibility to use the payout however you want it.
According to the Life Insurance Association Singapore (LIA), there’re 37 common critical illnesses*. The type of critical illnesses covered, the level of coverage and the stages covered (ie early, intermediate or advance) may vary from insurer to insurer.
Dealing with a critical illness may not be a one-time affair. It’s worth looking into a CI plan that offers multiple lump-sum payouts in case of recurrence. Consider a plan like HSBC Life Super CritiCare which offers multiple lump sum payouts for early, intermediate, and advanced stages of your ailment. The plan also includes relapse coverage for critical illnesses with high recurrent rates such as cancer.
3. Disability income insurance
Disability income insurance offers a portion of your salary as a fixed monthly payout if you’re unable to work due to a temporary or permanent disability caused by an accident or an illness. The payout will continue until you resume work or until the age of 60 or 65. Depending on the insurer, the definition of disability may vary. Some disability income plans may offer benefits such as one-time rehabilitation benefit, death benefit or lump-sum payout.
4. Employee healthcare insurance
Employee healthcare insurance is the type of health insurance provided as a job benefit by your employer and effective for as long as you’re employed by the company. This means you’ll no longer be covered if you resign from your job, get terminated or retire.
While the type of coverage for employee healthcare insurance varies from plan to plan, most offer basic hospitalisation coverage and reimbursement of medical expenses for visits to panel general practitioners and specialists. Speak to your human resources department to find out the coverage details.
5. Maternity insurance
Maternity insurance such as HSBC Life EmpoweredMum provides a payout in the event of pregnancy complications and birth defects. This can include eclampsia, stillbirth, congenital blindness, spina bifida and more. Typically, expectant mothers are eligible to purchase the plan starting from the second trimester of pregnancy. The coverage takes effect from the time the plan is purchased to the birth of the child for pregnancy complications. However, the child may continue to be covered for a couple more years depending on the plan.
6. Specialised insurance for pre-existing conditions
While your MediShiled Life covers pre-existing conditions, most health insurance plans offered by private insurers do not. However, there’re some plans designed to provide coverage for recurrent or newly diagnosed cancers such as HSBC Life Cancer ReCover. Keep in mind that such plans typically come with eligibility criteria.
How much health insurance coverage is right for you and your loved ones?
There is no ideal sum of coverage as everyone has different circumstances and needs. Having said that, here are a few things you need to consider when purchasing health insurance.
-
medical coverage that’s enough to maintain your current standard of living
-
critical illness coverage that pays five to eight years of your current income
-
disability income coverage of 50–60 per cent of your current income
If you have dependants, it’s also advisable to consider an early Critical Illness plan or a rider. This can help give you the financial support you need to seek treatment when your chance of recovery is at its highest.
To learn more about our health insurance plans, leave your details below to get in touch with an HSBC Life financial planner. | 
