Get cover early
Get health insurance early, while you're still healthy. If a medical condition has developed, the insurer may charge a higher premium and/or exclude that condition. A critical illness like cancer may deem you 'uninsurable'.
Know your health plan
Does your existing plan offer specific features that may not be available in the new plan? For instance, the industry definitions for critical illness were tightened in July 2003, so if you change plans with a critical illness cover, you must accept the new stricter definitions.
Health status changes
If you already own a plan and your health changes, ask if the insurer wants to exclude or charge a higher premium on this new complaint.
When to surrender your existing health plan
If you have decided to switch plans, surrender the old policy only 30 to 90 days after the new one kicks in. This is because there is usually still a waiting period before certain medical claims are accepted.
No gain in buying more hospitalisation and surgical (H&S) plans
Health expenses like H&S plans are usually reimbursement plans, which means the total amount a policyholder can claim cannot exceed the actual hospital expense incurred. So there is nothing to gain from buying extra policies.
Choose an affordable and suitable plan
Different plan types cater to different levels of needs and preference. Those catering to Class A wards will cover more of a medical bill but premiums are also higher compared with plans catering for stays in lower class wards. Premiums are based on age so consumers must consider the higher costs they face when they reach an older age bracket. They are typically allowed to downgrade to a lower plan type if they can no longer afford the higher premiums without underwriting. But moving to a higher level plan will require a new health assessment.
Know a plan's deductibles and co-insurance limits
Most plans do not pay from the first dollar and come with deductibles and co-insurance. A deductible is the fixed initial claim amount not covered by the insurance. Co-insurance is the percentage of the total claimable amount, in excess of the deductible. It is also not covered by the health insurance. However, some firms offer riders that cover the deductible and co-insurance for a premium.
Look for other limits
Besides the lifetime benefit limit and annual benefit limit, there are also the sub-limits for reimbursement that depend on the plan type. Ensure that renewal of the policy is guaranteed.This means the insurer will continue to renew the policy annually regardless of your health and even after a claim has been made, as long as the lifetime benefit limit has not been exceeded. Premium increase will be based on the firm's policy schedule - usually according to five-year age brackets - across all policyholders. For plans that are not renewal-guaranteed, the insurer may raise premiums or refuse to insure you, particularly after a large claim.
Go for Medisave-approved private schemes
This is because premium payments for these can be made from the Central Provident Fund (CPF) Medisave account. You can also use Medisave to pay your family's premiums for such plans. But the maximum Medisave withdrawal is $800 per person a year.
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