I noticed that my IP rider premium has been increased significantly. I am paying $61/month but this is the old rider. Not sure if it is worth paying this premium and if i should consider changing?

Hi anon,

​

Unfortunately healthcare inflation is a very real thing in Singapore, and has stayed persistently high over the years.

​

The general idea of insurance is that claims paid out must be offset by premiums collected. Thus, with increasing claims, premiums have to increase corerspondingly.

​

Now, on the topic of whether it is 'worth' paying, we must also consider the alternative: What would happen to you if you were hospitalized without the rider?

​

You'll be on the hook for the full co-payment.

​

Do you know what the hospital bill is? Unlikely. It could be any amount from a few thousands to hundreds of thousands.

​

Do you know what your rider premium is? Yes. It's $61/mth. And yes, it will increase, but it's not likely to triple over a year,

​

You have a short term (a few years) predictability over your premiums rather than no say over your hospital bill.

​

So I can't say it's not 'worth' paying, because the alternative really doesn't sound better.

​

On the topic of changing, you could, but this is provided that your health is totally clean, and changing on the basis of premiums still traps you in the same problem: I.e the premiums will still increase over the years

IP premiums are increasing across board because of medical inflation in Singapore, which has been insanely hight, 10% p.a. Changing IP can be an option, but really you can't guarantee the rates over the years, X company can be cheaper today, then Y company next year and Z company in 5 years, thats been the trend. Remember to compare the benefits too and claims experience, this can be a useful read: https://plannerbee.co/best-robo-advisors/#best-...