The Real Cost of Getting Sick With Insurance

This post was originally posted on Planner Bee.

We often assume that health insurance will take care of everything. We pay our premiums, choose our plans, and hope we won’t need to use them. But when illness hits, whether it’s an unexpected hospital stay, a few weeks recovering from dengue, or helping a parent through a long-term condition, the costs can come as a surprise.

Even with insurance and subsidies through schemes like MediSave and CHAS, getting sick can still be expensive. On top of hospital fees, there are many ongoing, hidden and emotional costs that people rarely talk about until they go through it themselves.

Here’s what most people don’t mention, and what you can do to look after your finances, health and wellbeing.

What insurance covers and what it doesn’t

Health insurance is a critical part of any adult’s financial safety net. But even though it plays a key role, it’s often not well understood.

In Singapore, MediShield Life offers basic hospitalisation coverage. Those who can afford more protection often purchase Integrated Shield Plans (IPs). These plans can help reduce large medical bills, but they are not a complete solution.

Most plans include deductibles, which are amounts you need to pay out of pocket first. There are also co-payments, which are a share of the remaining bill you must cover, usually around 5 to 10 percent. Unless you have bought a rider, these extra costs cannot be avoided.

Insurance usually helps cover:

• Ward charges, surgery, anaesthesia and standard medication
• Pre- and post-hospitalisation consultations (within a specified period)
• Certain approved scans and diagnostic tests

But it often won’t cover:

• Long-term medication or chronic outpatient treatments
• Mental health counselling or psychiatric therapy
• Alternative treatments like acupuncture or traditional Chinese medicine
• Home recovery tools like hospital beds or mobility aids
• Nutritional supplements or special diets
• Some newer drugs or tests that aren’t claimable

Then there are non-medical costs. Things like transport to appointments, food delivery when you’re unwell, or lost income from taking unpaid leave. These are not covered by insurance either.

The hidden and ongoing costs of falling ill

Hospital bills are only one part of the story. Illness often brings a range of other costs that catch people off guard.

Lost income

If you’re self-employed, freelance, or on contract, being unwell can mean unpaid time off and a sudden stop in income. Even those in full-time jobs may run out of sick leave if recovery takes longer than expected. Taking extended leave or cutting back on work hours can also affect bonuses, promotions and job security.

It doesn’t always stop with your own health either. If a child, partner or elderly parent falls ill, you might need to take time off to care for them. That can lead to similar losses in income or productivity. Many end up using their annual leave, or even taking unpaid leave, just to manage these responsibilities.

Transport and daily living costs

We often do not realise how much we rely on getting around until we are too unwell to use public transport. Rides to the hospital, taxis to therapy sessions or quick pharmacy trips can add up quickly. Over a few weeks, these costs can amount to hundreds of dollars.

Cooking can also become difficult when you are unwell. Food delivery has become a common option. In some cases, it is not just for convenience. Certain conditions may require a specific diet, such as soft food after surgery or high-protein meals for recovery. These often cost more than regular groceries.

Cancelled plans and non-refundable bookings

Sickness can disrupt your plans in unexpected ways. Prepaid gym sessions may go to waste. Travel bookings may have to be cancelled. Classes, events or appointments you paid for may be missed with no refund. While a few of these may be covered by insurance, many are not. These losses can feel especially frustrating when you are already dealing with the stress of being unwell.

Read more: Health Insurance in Singapore: All You Need To Know

Chronic illness is a long-term financial drain

Unlike a short hospital stay, chronic conditions such as hypertension, high cholesterol, diabetes, arthritis, and even depression quietly chip away your finances.

Managing these conditions often means:

• Taking monthly medication
• Going for check-ups every three to six months
• Doing occasional blood tests, scans, or therapy
• Using home monitoring devices or making lifestyle changes

Even with subsidies like CHAS or polyclinic rates, you could still spend between S$100 and S$300 each month on healthcare. This is if your condition is stable. Flare-ups or complications can bring extra, unexpected costs.

If your condition affects your ability to work full-time or take on additional income opportunities, the financial pressure can increase further.

Read more: Protecting Yourself Against Cancer, Stroke and Heart Attack: Critical Illness Insurance Plans To Consider

The emotional cost we don’t talk about enough

Illness doesn’t just affect your body or your bank account. It can take a real emotional toll, and we often don’t talk about it enough.

When you’re unwell, it’s easy for anxiety to build up. You might worry about medical bills, whether you’re recovering quickly enough, or if your boss thinks you’re slacking. You may feel guilty for relying on others, or even ashamed that you’re not bouncing back as expected.

Caregivers go through it too. If you’re looking after a sick parent or partner, you might feel burned out, frustrated or emotionally drained. These feelings are completely valid and very common, but they’re rarely discussed.

Mental health support is important, but access to affordable counselling is still limited. Most insurance plans don’t cover it fully. Private counselling or therapy can cost between S$150 and S$200 per session. That’s a lot, especially when your finances are already stretched.

Read more: How to Get Support for Your Mental Health in Singapore

How to protect yourself before you get sick

No one likes to think about falling ill, but planning ahead can make a big difference. Here are a few steps you can take to build resilience before you need it.

Set up a medical emergency fund

Think of this as your stormy weather fund, not just a rainy day one. Aim to save between S$5,000 and S$10,000, or enough to cover a few weeks without income. This should also account for things like transport, caregiving support, and other costs that insurance may not cover.

Review your insurance coverage

Take time to understand your current plan. Ask yourself:

• What’s your co-payment rate?
• What’s excluded?
• Are you covered for private or public hospitals?
• How do riders or critical illness plans work with your policy?

Don’t wait until you’re in the hospital to find out what’s not included. A chat with a financial advisor can help you spot and fill any gaps.

Read more: How MediShield Life Changes Will Affect Your Healthcare Costs

Consider additional protection

Critical illness insurance pays a lump sum if you are diagnosed with certain conditions such as cancer, stroke or heart disease. This can support you while you recover or if you are unable to work.

Disability income insurance is another option. It provides monthly payouts if illness or injury prevents you from working.

Both types of cover can work alongside your hospitalisation plan to help with day-to-day expenses.

Take preventive care seriously

Regular health screenings, staying up to date with vaccinations and maintaining a healthy lifestyle might seem simple, but they can help you avoid serious illness. Prevention is usually far more affordable than treatment.

In Singapore, Healthier SG and CHAS clinics offer subsidised or free screenings. Make use of them.

Read more: Is Your Critical Illness Coverage Enough? What Happens If You Are Under-Insured

No one plans to fall ill, but when it happens, the cost often goes well beyond the hospital bill. It’s easy to think you’re fully covered, yet even the best insurance has its limits. That’s why it’s important to prepare while you’re still well. Know what your plan includes, set aside a safety net, and keep up with regular check-ups. Small steps now can make a big difference later.

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