Personal Finance 101 (LLI)
Asked by Anonymous
Asked on 05 Dec 2018
I would encourage all to upgrade to private hospital plan first because of the following reasons
(1) It is easier to downgrade, than to upgrade
(2) You are the greatest asset (the money making machine) especially in the early years. You would want comfort and also better treatment, less waiting time (especially the case on private and public queue system in hospital). Your ability to get back to work is very important imho
(3) The premiums to pay, as mentioned for the rider, is about $40 (for full rider) and $25 a month (for saver rider options). This is a lot cheaper than $800-$1000 when you reach older age. (some also allows hospotal cash back if you stayed in public A class).
(4) Once affordability is an issue, you can downgrade for public A class.
Yes, it is better to pay more for private plan when you are young as the premium are relatively cheaper. However, do note that the premium would get more and more expensive when you are older, especially around 41 years old. This will only get more expensive as the medical costs in Singapore is escalating.
Yes, it is worth. There is a good list of benefits to the able to seek private treatment. You pay the premium that reflects the risk of someone in the twenties (which is very low). It is a fair exchange of beneifts. For your age the premiums are not much higher anyway.
When u become older, u pay a much higher premium due to the increase probability of hospitalisation. You will not be able to upgrade later, If u are unfortunate enough to develop some illness before that. You will not be able to predict the future when will something happen. And when something happens u would want the best treatment options possible. Upgrade now to the highest tier, otherwise u will most likely procastinate in future to upgrade. I understand this is the likely behaviour when facing insurance for most people. =D