Things to Keep in Mind Before Investing in Health Insurance

health insurance

Health insurance is a policy agreed upon by the beneficiary and the insuring company. It’s mainly a package offering medical benefits like tests, drugs and other treatment services. The insurer agrees to pay several medical benefits depending on the policy, and the beneficiary contributes to it as per the agreed term.

Having health insurance is important. Remember that no one plans to be sick. But if it happens, you can have peace of mind and focus on getting better with health insurance. But with many health insurers, how do you choose the right one for you? This article offers tips to help you choose the best health insurance in Singapore. Keep reading to learn more.

Do You Need Health Insurance?

Yes. Every person, regardless of their age, needs health insurance. Healthcare is costly these days. Unfortunately, many people can’t afford to pay for their healthcare out of pocket. Very wealthy people won’t feel a pinch paying for extraordinary emergency or long term healthcare. However, lower-income individuals always find it challenging to cover their medical expenses.

Health insurance ensures that you get healthcare whenever you need it. It protects you from medical and hospitalisation costs and other expenses that arise from your medical treatment. So, you can secure your retirement funds or savings as you will not be forced to use them for your treatment.

How Does Health Insurance Work?

Health insurance aims to reduce the high costs you’d have otherwise paid for medical care. Policies vary, but this is the process in most plans;

The beneficiary pays a monthly premium, depending on your policy. Most policies include a deductible that you pay out of pocket. Once they pay your deductible, you activate your plan and can now start cost-sharing with it. For instance, the insurance may cover 70% of your hospital bill, and you pay the remaining 20%.

Most insurers offer 100% coverage for preventive care. This includes vaccinations, flu shots, annual checkups and some types of wellness screening. Staying in-network can save you money since network providers give the beneficiary insurance company lower rates. Check your local health website for suggestions of network providers.

What is Covered and Not Covered with Health Insurance?

Well, plans vary, but they include preventive and no-preventive care. Some also offer emergency and behavioural care and vision and hearing. Your plans may cover vaccinations, preventative and non-preventative visits, lab work, emergency room, supplemental coverage for cancer, accidents, etc.

What isn’t covered also depends on a plan. But mostly, it includes cosmetic surgery, elective surgery and alternative medicine.

How to Choose the Best Health Insurance?

Health insurance providers offer several policies. Choosing the right option for you depends on various things. Here are steps to help you choose health insurance.

Choose Where to Shop for Insurance

The best insurance depends on what is available to you. Some employers offer health insurance. In this case, you will not need offers from government insurance or marketplaces. But you can still consider these options if you are unsatisfied with the employer plans. However, expect to pay more if you opt for marketplaces. Most employers contribute to the worker’s policy, which lowers your monthly health insurance payment.  But if the employer doesn’t offer insurance, you have no option but to shop in the marketplaces, which can be online or federal.

Compare Insurance Plans

Don’t be quick to settle on any policy or insurer. It would be best to commit yourself to thorough research to find the best solution for you. Check summary benefits from online providers about what the plan covers and how much it costs. You can ask your employer about the summary of workplace benefits if you are considering this insurance. When comparing policies, consider your family’s medical needs. Examine the type of treatments you’ve received before. While it’s impossible to determine your future medical expenses, knowing the trend can help you choose the right policy.

Check the Insurer’s Reputation and Claim Settlement Ratio

The features of a policy are a good start. But they aren’t enough to determine whether it’s the best healthcare insurance. The insurance company also plays a huge role. Please buy plans from an approachable and helpful insurer. Make sure they also provide excellent customer support, and you love their overall positive rating. Additionally, check their claim settlement ratio. The best insurer should have a high and healthy CSR. Remember, you need a helpful plan to cover your claims when needed.

Determine the Monthly Payments and Deductible

Contributing to the same thing every month is not easy. You need a plan that you will comfortably contribute to monthly without straining your finances. All beneficiaries pay a monthly premium regardless of whether they make a claim that month. These payments cater to the day to day expenses. Please know a plan’s monthly payments before committing to a plan and ensuring that your income allows it.

Additionally, find out the deductible, the amount you pay first before your insurance pays anything. It’s an annual amount, meaning it covers the entire policy year. It’s also wise to determine a copay for every hospital visit. The amount varies depending on your insurer.