Navigating the world of health insurance in Singapore can feel like a headache – trust me, I’ve been there.
And with the rising cost of healthcare, not having the right coverage can leave you vulnerable.
In this post, you’ll learn:
- What health insurance is and why it matters to Singaporeans
- The ins and outs of MediShield Life, Integrated Shield Plans, and riders
- How to pay for your health insurance and what government assistance is available
- Tips on applying and making the right choice for your needs
If you’ve ever felt lost trying to figure out the best health coverage, or just want to be prepared for anything life throws your way, keep reading – this post has got you covered.
What is health insurance?
Health insurance is basically a safety net that protects you from the unpredictable – like an illness, injury, or any health condition that could set you back financially.
It covers all or part of your medical expenses, which could include everything from hospitalisation costs to medications and even outpatient treatments.
Essentially, it gives you peace of mind to focus on your recovery rather than scrambling for funds.
Why is health insurance important to Singaporeans?
Health insurance is vital for its additional coverage options.
While MediShield Life offers basic protection, comprehensive plans like Integrated Shield Plans (IPs) allow you to choose preferred healthcare providers, including private hospitals and trusted doctors.
This flexibility not only enhances comfort but also ensures access to high-quality treatments without the financial strain, allowing you to pursue the best care for complex procedures.
Furthermore, health insurance makes quality healthcare more accessible.
When faced with sudden health issues – like accidents or unexpected surgeries – the right insurance plan reduces stress.
Although MediShield Life provides basic coverage, Integrated Shield Plans (IPs) or private health insurance offer quicker access to care and a wider range of treatment options for greater peace of mind.
Lastly, it helps alleviate financial stress by offsetting rising healthcare costs in Singapore.
While MediShield Life offers basic protection, it has limits on claims, often requiring higher out-of-pocket payments through deductibles and coinsurance.
With the right health insurance plan, this financial burden can be significantly reduced or even eliminated, depending on the coverage and riders chosen.
Types of health insurance and what they cover
Technically, only MediShield Life and Integrated Shield Plans are considered health insurance policies in Singapore.
However, I’ve listed down the following types of insurance that covers different aspects of your health, and are often mistaken as what would you would get if you purchased “health insurance” (Integrated Shield Plans):
| Type of Health Insurance | Coverage |
| MediShield Life | Inpatient and outpatient treatments (for up to Class B2/C wards in public hospital)
Includes pre-existing conditions |
| Integrated Shield Plan | Enhanced coverage for inpatient and outpatient treatments (Private hospitals, A/B1 ward public hospitals)
Might exclude pre-existing conditions |
| ElderShield / CareShield Life: Long-term care insurance | Lifetime payout for severe disability, including individuals with pre-existing severe disabilities |
| Critical Illness (CI) and Early Critical Illness (ECI) insurance | Lump-sum payout for any of the covered critical illness conditions |
| Personal Accident Insurance | Covers you when you get into an accident. Certain policies cover you for infectious diseases too. |
| Disability Income Insurance | Fixed sum each month to replace loss of income during active employment years |
| Hospital Cash Insurance | Includes cash benefits for day surgery, recuperation, overseas hospitalisation or medical evacuation etc. |
MediShield Life
MediShield Life is the bedrock of health insurance in Singapore.
If you’re a Singaporean or Permanent Resident (PR), you’re automatically covered under this national health insurance scheme.
It’s designed to provide basic protection for those larger medical expenses that could otherwise cause financial strain – like hospitalisation, surgery, and certain expensive outpatient treatments such as dialysis or chemotherapy.
Integrated Shield Plans + riders
Think of Integrated Shield Plans (IPs) as an upgrade to your existing MediShield Life – like adding a premium package to your basic plan.
While MediShield Life provides foundational coverage for all Singaporeans and PRs, IPs step things up a notch by giving you additional coverage and more flexibility, especially if you want to be treated in private hospitals or higher-class wards in public hospitals.
IP riders are the optional add-ons to your IP, providing even more benefits – and this is where the real game-changer happens.
Riders can help you reduce or even eliminate certain out-of-pocket costs, such as deductibles and coinsurance, which you would typically need to pay under an IP.
Riders also offer various perks – like daily hospital cash benefits, enhanced coverage for certain treatments, and even extended post-hospitalisation benefits.
ElderShield/CareShield Life
ElderShield and CareShield Life are all about long-term care – providing a safety net when it comes to severe disability, and helping you manage the financial load of daily care.
ElderShield is a long-term care insurance scheme launched back in 2002, and designed to support Singaporeans and PRs with severe disabilities.
It’s meant to provide financial help if you’re unable to perform basic activities of daily living (ADLs), like getting dressed, feeding yourself, or going to the toilet.
If you qualify, ElderShield gives you a monthly payout for up to 5 or 6 years (depending on your plan) to help cover your long-term care needs.
On the other hand, CareShield Life, launched in 2020, is the enhanced version of ElderShield.
If you were born in or after 1980, you’re automatically covered under CareShield Life once you turn 30.
CareShield Life covers you for your entire life if you can’t perform any of the ADLs, even if you have pre-existing conditions.
Critical Illness & Early Critical Illness Insurance
Critical Illness Insurance provides a lump-sum payout if you’re diagnosed with a severe illness covered by your policy.
It’s different from your regular health insurance or IPs – instead of paying for your medical bills directly, CI insurance gives you cash, which you can use however you need.
But here’s the catch: most CI policies only pay out when the illness reaches a certain severity – often described as the “late” or “advanced stage.”
This is where Early Critical Illness (ECI) Insurance steps in.
ECI insurance is designed to provide coverage from the early stages of a diagnosis, helping you get support right from the start.
This gives you more flexibility and financial security early on, allowing you to seek the best possible treatment or take preventive action before the illness worsens.
Personal Accident Insurance
Personal Accident (PA) insurance is designed to provide financial protection against unforeseen accidents, offering coverage for a wide range of situations, from minor injuries to more severe incidents that might leave you temporarily or permanently disabled.
With PA Insurance, you might be eligible for a lump-sum payout to cover any medical expenses or even a daily hospital cash benefit to help while you’re recovering.
While PA insurance might seem similar to shield plans, it differs mainly in when you can make claims.
For shield plans, you can claim in the event you’re hospitalised – regardless of the cause.
However, PA plans let you claim for accidents that do not require you to be hospitalised, something that happens most of the time but yet many are not covered for.
Disability Income Insurance
Disability Income Insurance is designed to replace a portion of your income if you’re unable to work due to an illness or injury that leads to a disability, so you can maintain your financial stability even when you can’t perform your job.
Unlike other types of insurance that offer a lump-sum payout, this type of insurance provides you with a monthly payout, typically up to 80% of your regular income, until you either recover, reach a certain age (often 55, 60, or 65), or hit the policy’s benefit limit.
Hospital Cash Insurance
Unlike other health insurance plans that directly pay for your medical bills, hospital cash insurance gives you cash, which you can use however you see fit – whether that’s for covering loss of income, additional treatments not covered by your other policies, or even transportation costs for your family to visit you.
A hospital cash insurance policy might provide you with, say, $200 a day for every day you’re admitted, so by the end of your stay, you’d have received $1,400 (assuming $200 per day over 7 days).
Don’t forget about your employer’s health insurance
If you’re employed, there’s a good chance that your employer already has you covered under some kind of health insurance plan as part of your employee benefits.
Many companies in Singapore provide basic health insurance to their staff, and this often includes coverage for outpatient visits, general practitioner (GP) consultations, and sometimes hospitalisation.
However, here’s the key thing – not all employer health insurance policies are created equal.
Coverage can vary widely, so it’s important to know exactly what you’re covered for.
Most plans provided by employers tend to focus on outpatient care – the basics like doctor visits, medication, or minor treatments.
That’s helpful for day-to-day health needs, but it may not be sufficient for bigger medical expenses, such as hospital stays, surgeries, or long-term treatments.
If I have company health insurance, should I buy my own health insurance?
Absolutely, and here’s why: your company’s health insurance is a great benefit, but it’s also temporary and may leave you underinsured.
As we’ve seen with events like COVID-19 and the constant ups and downs of the market, job security is never guaranteed.
If you leave your job, are retrenched, or decide to retire, that company health coverage disappears too.
Not to mention, the older you get, the more “high-risk” you become in the eyes of insurers.
Unfortunately, that means the premiums go up, and there’s a chance you may face exclusions or even be denied coverage if you develop health issues over time.
The last thing you want is to hit retirement age or leave your job, only to realise you’re uninsured or unable to get coverage because of age or pre-existing conditions.
That’s why it’s wise to consider having your own personal health insurance policy – a plan that’s yours to keep, no matter what happens with your employment status.
What about health insurance options for foreigners in Singapore?
Integrated Shield Plan
If you’re a foreigner living and working in Singapore, having health insurance is just as important, given the high cost of medical treatment.
Unlike citizens and PRs, you’re not automatically covered under MediShield Life, but you do have options to ensure you’re protected.
One of the most popular choices is an integrated shield plan (IP).
Several private insurers in Singapore offer IPs specifically for foreigners who hold a valid work pass, and these can provide coverage for everything from hospitalisation to surgery and outpatient treatments.
Currently, only a few insurers provide IPs for foreigners:
- AIA HealthShield
- Great Eastern GREAT SupremeHealth
- NTUC Income Enhanced IncomeShield
- Raffles Health Insurance Raffles Shield
Global Health Insurance
If you’re a foreigner living in Singapore without a valid work pass, or someone who travels often for work or leisure, then global health insurance might be your best bet.
Unlike integrated shield plans, which are designed specifically to cover healthcare costs within Singapore, global health insurance provides worldwide coverage, making it ideal for expatriates, frequent travellers, or those who might receive treatment both in Singapore and abroad.
IPs usually cover a specific network of hospitals and clinics in Singapore, with some limitations on specialists and facilities.
In contrast, international health insurance offers greater flexibility, allowing access to preferred healthcare providers across various countries, which is ideal for frequent travellers or those seeking top-tier international care.
However, global health insurance typically comes with higher premiums, making IPs a more affordable option for those who only need coverage within Singapore.
How to pay for health insurance in Singapore?
| Type of Health Insurance | Premiums Payable By |
| MediShield Life | Fully payable via MediSave
Family members can also pay premiums on behalf |
| Integrated Shield Plan | MediSave can be used, subjected to Additional Withdrawal Limits (AWLs) |
| ElderShield / CareShield Life: Long-term care insurance | MediSave can be used, subjected to Additional Withdrawal Limits (AWLs) |
| Critical Illness (CI) and Early Critical Illness (ECI) insurance | Payable by cash |
| Personal Accident Insurance | Payable by cash |
| Disability Income Insurance | Payable by cash |
| Hospital Cash Insurance | Payable by cash |
CPF MediSave
For most Singaporeans and PRs, MediSave is the go-to option for paying health insurance premiums, particularly for plans like MediShield Life and integrated shield plans.
You can use MediSave to pay for both MediShield Life premiums and Integrated Shield Plan (IP) premiums.
MediShield Life premiums are fully payable by MediSave.
For IP premiums, the MediShield Life portion is also covered by MediSave.
However, there are Additional Withdrawal Limits (AWLs) based on your age:
- S$300 per year for those aged 40 and below
- S$600 per year for those aged 41 to 70
- S$900 per year for those aged 71 and above.
If the premium exceeds the AWL, you’ll have to top up the difference with cash.
Cash Payments
For certain types of plans or riders (optional add-ons to your insurance plan), you’ll need to pay the premiums in cash. For example:
- IP Riders: These aren’t payable by MediSave, so if you want to enhance your coverage or reduce deductibles and copayments, you’ll need to pay for these riders separately in cash.
- Private Health Insurance Plans or Global Health Insurance: If you’re a foreigner or choosing a plan that isn’t MediSave-approved, cash will likely be the primary method of payment.
Other Payment Methods
Depending on your insurer and the type of plan, there may be additional ways to pay for your health insurance:
- GIRO: Some insurers offer automatic deductions through your bank account via GIRO, making payments hassle-free and ensuring you never miss a premium.
- Credit or Debit Cards: Most private insurers accept payments through credit or debit cards, allowing you to pay premiums either monthly, quarterly, or annually, depending on your policy.
- Cheque or Bank Transfer: A few insurers may allow you to make payments via cheque or a one-time bank transfer, particularly for annual premiums.
Paying for Family Members’ Coverage
You can use your MediSave to pay for the health insurance premiums of your immediate family members as well, including your spouse, children, parents, and grandparents (provided they’re Singaporeans or PRs).
This option can help alleviate financial burdens across the family, especially when ensuring everyone has adequate health coverage.
How to apply for or purchase health insurance in Singapore?
1. Assess your needs
Start by figuring out what kind of coverage you need.
Consider your personal situation – are you single, married, or do you have dependents?
Take into account your current health status, lifestyle, and long-term healthcare needs.
Also, be sure to review any health insurance benefits your employer may offer.
Some companies provide outpatient coverage, hospitalisation, or dental benefits, so you want to know exactly what’s covered before you shop for more insurance.
2. Assess your current gaps
Once you know what you need, it’s time to assess your coverage gaps.
Ask yourself:
- Is my employer-provided coverage enough for hospital stays, surgery, or emergencies?
- Do I need coverage for chronic conditions or critical illnesses?
- Would I prefer to have access to private healthcare and choose my doctors?
Review what you currently have, including any MediShield Life or shield plans and determine what’s missing.
This will help you understand the type and level of additional coverage you might need, whether it’s an IP, a critical illness plan, or a personal accident policy.
3. Set an insurance budget
Health insurance is a long-term commitment, so it’s essential to choose a plan that fits your financial situation. Consider:
- How much can you afford to pay in premiums monthly or annually?
- Do you have other financial priorities, like savings, retirement, or investments, that could affect how much you spend on insurance?
Remember that premiums for certain health insurance policies can increase as you age, so make sure the plan you choose is something you can sustain in the long run.
4. Talk to a financial advisor
Navigating health insurance options can be complex, and that’s where a financial advisor can be extremely helpful.
They can provide guidance on the types of plans that best match your needs, explain the nuances of coverage (especially when comparing IPs or riders), and help you understand any technical jargon.
They can also compare plans from different insurers and help you find the best deal.
5. Regularly review your policies
It’s a good practice to review your health insurance policies annually or whenever there’s a significant change in your life – like getting married, having kids, changing jobs, or experiencing health changes.
By doing so, you ensure that your coverage continues to meet your needs, and you can make adjustments to your plan if necessary.
What if I can’t afford health insurance?
If you’re unable to pay your medical bills even after using MediSave and MediShield Life, MediFund can help.
You can apply for MediFund assistance directly at the medical institution where you received treatment, and the application is reviewed based on your financial situation, family circumstances, and the bill amount.
For lower-income elderly Singaporeans who have severe disabilities and require long-term care, ElderFund is available to provide financial assistance.
It’s targeted at those who may not be eligible for other support schemes like CareShield Life or ElderShield.
The payouts from ElderFund can be used to help with daily living expenses and care needs.
ComCare is a social assistance scheme aimed at helping low-income families in Singapore who struggle with daily expenses, including healthcare costs.
The assistance is broad and includes short- to medium-term support, long-term assistance for those unable to work, and even childcare subsidies for families in need.
If you or a family member has severe disability and need help covering long-term care costs, MediSave Care allows you to tap into your MediSave funds for cash withdrawals.
It’s designed to help pay for care needs arising from disability, such as hiring a caregiver or covering daily expenses.
To be eligible, you must meet the criteria for severe disability, as determined by an assessor.
Frequently Asked Questions
Can I have multiple shield plans?
You can’t have multiple shield plans in Singapore.
Shield plans are designed to work alongside MediShield Life, and you can only be covered under one Integrated Shield Plan (IP) at a time.
If you decide to switch to a different IP from another insurer, your existing plan will automatically be terminated once the new one starts.
So, while you can’t stack multiple shield plans, you can still enhance your coverage with additional riders or by upgrading your current IP to one that better fits your healthcare needs.
Conclusion
Health insurance in Singapore can seem like a maze, but hopefully, this guide has helped break down the essentials.
We’ve covered everything from what health insurance is, why it’s crucial to have it, and the different types like MediShield Life, Integrated Shield Plans, critical illness coverage, and more.
We’ve also explored employer health benefits, options for foreigners, and ways to pay for your policies.
And if cost is a concern, we’ve gone through government support schemes like MediFund and ElderFund to show that help is available.
Choosing the right health insurance can be overwhelming, especially with so many options and considerations.
If you’re still unsure or need personalised advice, why not chat with one of our financial advisor partners?
They can help you understand your needs and make the best decision – and it’s free, no strings attached.
Stay covered, stay protected, and remember – your health is worth it.
