Wednesday, December 4, 2013

Importance of Insurance Coverage

Recently I have seen friends meet with rather serious medical conditions.
The first thought that comes to mind after enquiring about their well being is whether they have sufficient medical insurance coverage. The key question on my mind is
Is he covered with sufficient medical insurance?

In Singapore where medical cost is sky high, having sufficient medical coverage is important.
If you have sufficient medical coverage it may mean the difference between

  • Having a choice as to which doctor you can seek treatment from 
  • The kind of room and facilities for rehabilitation
  • Having a dedicated medial team instead of a rotating medical team
  • Long wait versus a shorter wait.
Insurance coverage can subsidize a bulk of the medical cost without the expenses blowing your budget or wiping out your entire savings.

I think the base coverage most Singaporean should have are

  • Enhanced hospitalization plan in addition to Medisave and Medishield.
  • Term life insurance or whole life insurance if you have dependents
  • Insurance that covers critical illnesses  
This is usually what happens if someone is admitted to the hospital
Base deposit that varies between $1,000 to $3,000 depending on whether you are staying in a government hospital, government restructured hospital or private hospital.
Then the cost of the medical procedure plus medical instruments and facilities during the period you are staying in. This amount can be offset against the deposit and the balance can be settled in cash/cheque or credit card when you are discharged.
Thereafter the amount you have paid will be reimbursed by the insurance company after adjusting firm has confirmed that your condition is insured by your medical insurance.

Having some cash on hand is important for situations like this besides it being a chest for your opportunity fund.

Well, after experiencing a few cases, it has made me more grateful for what I have and to treasure the people around me.
With Christmas just round the corner, I will be sharing my upcoming Christmas holiday in HongKong/Zhuhai & Macau with some budgeting done as well.

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