Been reading posts advising on having a medical insurance as part of our retirement plan. Being a young and healthy working adult now, is there a need for me to buy medical insurance as young as possible and why? - Seedly
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Anonymous

Asked on 02 Sep 2018

Been reading posts advising on having a medical insurance as part of our retirement plan. Being a young and healthy working adult now, is there a need for me to buy medical insurance as young as possible and why?

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Dear Anon,

Medical insurance can save you on medical liabilities. Indeed it is very important and as young as possible definitely is better.

Rule of thumb as an insurance coverage is usually

  1. 10X Annual Income as coverage in the event of Death

  2. 5-10X Annual Income as coverage in the event of Critical Illness

  3. Integrated Shield Plan with Rider

Would share more details in this article on what do the insurance coverages help you with. And we have a package to suggest as a starting point for young working adults.

Read article: https://www.theastuteparent.com/2020/04/no-nonsense-guide-to-getting-insured-for-millennials-2020/

If in doubt drop me an email at [email protected] or contact any qualified adviser.

PS: Sub to our telegram for the latest financial planning ideas, cya there too! https://t.me/theastuteparent

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Suraiinsos

29 Apr 2020

This is so helpful 👍

The best time to get medical insurance is when you are young and healthy. I have met many people who had relied heavily on their company insurance for most of their lives, then only start panic when it nearing their retirement. That is when they realised they are no longer in the pink of health, thus their options for medical insurances are limited by their medical conditions.

When you are young and healthy, you get to choose which insurer you prefer. Once you have a medical condition on record, it will be the insurer's turn to decide whether to take your policy in or not. If the medical condition is not too serious, it might just be exclusion. In unfortunate cases, the application might get declined right away.

Hence it is always advised to get insured when you are perfectly healthy and lock in that coverage. You don't want to be saving and investing all your life and only use the accumulations just to pay off your medical bills. Take a small portion out of your savings, do yourself a favour and put in a medical insurance. Afterall, your biggest asset now is your clean bill of health :)​​​

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Jim Ng
Jim Ng
Level 6. Master
Answered on 28 Oct 2018

The answer is simple:

If you purchase Life Insurance, Disability Insurance or Critical Illness Insurance, they're all meant to protect against the loss of income as a result of you being unable to work.

They're not meant to cover your hospital bills. Medical insurance is cheap, affordable and is able to cover your hospital bills. Only after covering your hosptial bills, then should you consider buying the rest of the other kind of insurance, since the other kinds of insurance are usually more expensive.

Ask yourself this: How would you feel if you purchased a ton of life insurance, critical illness insurance and disability insurance, but if you were hospitalised due to an accident while still being alive, and are unable to make a claim of a single cent, does it sound logical to you?

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Angeline Teo
Angeline Teo, Calculator at The Internet
Level 6. Master
Answered 4w ago

Yes, and you probably won't even need cash for simple and good enough private shield medical insurance.

google for private shield medical insurance that are payable with your CPF-Medisave amount. Every major insurer has it.

AIA healthshield, Prudential prushield, aviva myshield, Great eastern supremeshield, raffles hospital shield, NTUC income shield, etc etc.....

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Been a young and healthy working adult, u need....you never know when u need it. dont count your luck. i was in reservist and i injured my knee.. luckily i am covered on medical insurance...and i use that first...Mindef process is very long, took them 6months to process my claims.

if any1 need any advise, can reach out to me

#planwithcolin

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LG
Lee Gek Lan,Financial Consultant (NTUC Income)
Level 3. Wonderkid
Answered on 26 Apr 2020

Hello, medical insurance should be the main basic building block for your insurance. For medical insurance, the golden rule in general is to buy when young and healthy. Why? Premium increases with age. On healthy aspect, because when a person is young, generally one is healthy and doesnt have pre-existing illness or condition.

Should a person had pre-existing illness or condition, and purchase a health policy, at that stage it may be tricky as the pre-existing illness is subject to exclusion or loading ( pay more premium in order to get the condition insured to a certain extent possible depending on the final decision of underwriter of the insurance company). hope this helps.

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Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 7. Grand Master
Answered on 03 Sep 2018

Firstly, check out what kind of coverage your company provides for hospitalisation.

In terms of financial planning, hospitalisation plans are a top most priority. Indeed, we may be young and healthy today and may not require medical attention for now. However, what guarantee do we have in terms of our health in the future or even getting into accidents.

Main purpose of hospitalisation plans is to shield you from large hospital bills which can easily wipe out your savings.

Another important point to note is that such plans can only be purchased when you are healthy, once you are hospitalised, it's tough, not to mention impossible for you to obtain coverage. Given that you are young now, cash premiums would cost your less than 1,000 a year for private hospital coverage.

Drop me a PM at [email protected] should you like to find out more.

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Ck Chai
Ck Chai
Level 6. Master
Answered on 03 Sep 2018

I feel that that medical insurance is often overlook by people who are young and healthy. However this is one of the most basic coverage that one should get. I've heard of so many cases of people who do regular checkup and found nothing wrong with their health but was suddenly diagnosed with last stage of cancer / severe sickness. You will never know what will happen tomorrow and definitely will not like the idea of financially trapped by the high medical bills and the need to burden your family as well.

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Charmaine Ng
Charmaine Ng, The Code Breaker at @ Every Chye Peng Stall
Level 6. Master
Answered on 02 Sep 2018

I would think that becase you're young and healthy now it's much easier for you to get a insurance (and cheaper) vs when you're older or when illness strikes because by then you'd face exclusions. Even if you're not retiring yet, you would want to be able to cover the medical costs in terms of hospitalization, personal accident and the period of time between your incident (illness/accident) to full recovery.

Think about it, if anything happens - would you be prepared and would you want to burden your family with these costs? We never know when accident might strike and trust me, it often happens in the most unexpected timing.​​​

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