Great Eastern Hospital Cash Plan

Don’t miss out on getting adequate and right coverage, especially when you are young. Here’s why.  


While insurance may not be a primary financial focus for young adults, that perception needs to change. Here are a few reasons why:

  1. Insurance acts as a safety net when things go south
  2. Premium costs tend to be lower,
  3. If you’re healthy, chances are that you’ll be able to get better overall insurance coverage for yourself compared to those older than you.

Regardless of your age, purchasing the relevant insurance policies ensures that you are protected and insured. 

Why do I — young and healthy — need insurance?

Insurance cushions the financial burden for both you and your family through rough times:

  • If you unexpectedly pass away, and your family who depends on you financially lose their main source of income.
  • If you meet with an accident or fall seriously ill and become saddled with huge hospital and treatment bills.

Insurance, made simple

For some of us, our parents may have bought us insurance coverage since we were young – and that’s great. Having insurance coverage is a privilege that some of us have. But do you know what exactly your insurance policies cover you for? Taking ownership of your policies and understanding its coverage is fundamental for your financial planning.

No one is “too young” for insurance. Whether or not you currently own any insurance policy, you need to have the right tools and knowledge to make informed decisions.

Before purchasing any insurance policy, ensure that you are able to afford the premiums. This is important as you will likely spend the rest of your life (or at least a long time) making monthly or yearly payments.

We have listed three key insurance products to help you in this decision-making process: health insurance, term life insurance, and critical illness insurance. 

Health Insurance

Health Insurance helps you to cover the costs of healthcare, this includes hospitalization bills, medical treatment and other expenses related to health.

All Singaporeans are covered under MediShield Life, a government scheme that helps us to cover large hospital bills and select costly outpatient treatments. MediShield Life provides subsidised treatment in public hospitals and is available at B2/C-type wards. If you choose an A/B1-type ward or a private hospital instead, MediShield Life coverage is still on the table.

However, it covers only a small proportion of your bill. You would need to use a mix of cash, MediSave, or both to settle the balance payments.

It’s like a McDonald’s McChicken – nothing wrong with it, but a McSpicy sounds better. In health insurance, the McSpicy equivalent is comparable to an Integrated Shield Plan (IP). 

Many Singaporeans choose to increase their coverage by purchasing an IP; higher coverage limits and coverage for pre/post-hospitalisation treatment. In addition, if you prefer having your recovery in A/B1 ward in a public hospital, or a private hospital, you should consider purchasing an Integrated Shield Plan (IP). 

Even though you would need to pay more when purchasing an IP, you can do so using your MediSave account and cash.

Can you pay your IP premiums using MediSave?

To answer the question: yes, according to MOH, the MediShield Life of an Integrated Shield Plan can be paid in full using MediSave.

While you can also use MediSave to pay your private insurance components, these are subject to Additional Withdrawal limits. Any excess would need to be paid in cash.

  • S$300 per year for those aged 40 years and below on their next birthday
  • S$600 per year for those aged 41-70 years on their next birthday
  • S$900 per year for those aged 71 years and above on their next birthday

If you would like to purchase additional coverage on top of your IP, there are additional riders you can add on as well.

For example, a common rider in health insurance covers your deductible and co-insurance. This means that when you make an insurance claim, there would still nonetheless be a portion that you would need to pay for. 

All add-on riders would need to be paid out of pocket.

You should purchase your health insurance while you are still young and relatively healthy. Premiums increase as you get older, and it becomes harder and costlier to take up health insurance if you develop any medical condition.

^ Premium will range from S$297 to S$362 for ages 21 to 29 years old, depending on the insurers selected for A Ward Hospital coverage. As for private hospital coverage, premiums can range from S$395(Great Eastern) to S$578(AIA) for ages 21 to 29 years old, also depending on the insurers selected for Private Hospital Coverage.

Additionally, for those between 26 and 30  years old, premium will be S$16.15 to S$217.01 based on Income Enhanced Incomeshield, while also depending on the types of plans selected.

Cost of premiums is based on a Life Assured, who does not have any pre-existing conditions at the point of the proposal.

Term Life Insurance

A term life policy provides a pay-out in the event of your death. Some insurers include coverage for total and permanent disability and terminal illness as part of their term life plans. Insurance coverage can start from as little as S$50,000 sum assured and for as short as five years.

You can use term life insurance to financially provide for your loved ones after you’re gone.  As taking up a Term life policy can also be a long-term commitment, you should not rush into this but assess your finances and how much coverage you need before making a decision. 

As a fresh graduate just entering the workforce, taking up a term life insurance plan may make more sense than a whole life plan. This is because term life plans are cheaper compared to whole life plans for the same insurance coverage.

Premiums can be as low as S$1-S$3 per day, subject to a few factors like the policy term, entry age, smoking status, pre-existing conditions, and the sum assured. For example, a FWD Life Plus term life insurance plan would cost  30-year old male non smoker, S$27.76* for S$1 million coverage over 35 years. Similarly, under Etiqa’s eProtect term life insurance plan, a 30-year old non-smoking male with S$1 million coverage would only need to pay S$32.29  monthly for five-year coverage, or S$74.81 for term life coverage until the age of 65 years.

However, term life plans do not offer any cash value upon the termination of the policy, unlike whole life plans that may offer some after a period of time. 

How much coverage do I need?

As a common rule of thumb, a good estimate for the amount of coverage (sum assured) needed is approximately ten times of your annual income.

However, this approach is a simple and straightforward way to estimate the coverage needed, with the idealistic assumption that it is one-size-fits-all. It does not take into account any of your unique circumstances and future obligations. 

^ For a 30-year old non-smoking male with no pre-existing condition with a non-manual job, you can expect premiums for a term life insurance plan to cost in between S$550 to S$850 annually.  

Critical Illness Insurance

While health insurance helps to cover your hospitalisation and treatment fees, it’s intended to reimburse you for medical expenses already incurred. 

However, during the period of diagnosis, treatment and recovery, you may likely be unable to work. Health insurance does not compensate you for any loss of income during this time.

This is where Critical Illness insurance may be useful. It provides you with a lump sum pay-out in the event that you are diagnosed with a Critical Illness. This pay-out allows you to cover at least part of you and your family’s expenses during your treatment and recovery.

How much would you need to pay for critical illness coverage? MSIG’s CancerCare Plus insurance plan, for instance, would cost a 30-year old male whth S$100,000 coverage less than S$8 in premium cost a month*. Similarly, for FWD’s Big 3 Critical Illness Insurance, a non-smoking 30-year old male with S$100,000 coverage would only need to pay S$0.50 per day*.

Do you need critical illness insurance if you already have Health insurance?

As a fresh graduate starting work, purchasing both health insurance and critical illness insurance might be expensive.

However, if you have the financial means, purchasing critical illness insurance on top of your health insurance definitely provides you with additional protection.

Make an informed decision before committing

Your insurance needs changes with time and is dependent on your unique circumstances. With that in mind, AMTD PolicyPal Group can help you to better understand the coverage you need for your current phase of life. 

We help you determine the coverage and calculate estimated premiums that suit you, based on your demographic and details. 

By using your profile, we can assess your insurance needs and help you understand exactly what you need.

These personalised solutions can help you to make more informed decisions that are driven by data. This ensures you’re not grossly over or underinsured and equipped with the right knowledge to make your decisions.  

Insurance is usually a long-term commitment, and it is important to balance your coverage needs with what you can afford.

*These prices are subject to change and promotions.

Enquire more and contact us today!

Want to know more about PolicyPal insurance plans?
Cannot find what you are looking for? Please reach out to us at [email protected]

Read more:

What Are Insurance Riders? Should You Buy Them?

Guide To Pet Costs and Pet Insurance in Singapore

Six Factors to Take Note of Before Taking Up a Personal Accident Plan

Download our app

PolicyPal helps you plan and reach your financial goals with personalised portfolio comparison. Manage your insurance digitally, wherever you are.
Download PolicyPal App on Apple Store to enjoy different insurance products like term life, whole life, travel, critical illness insurances.Download PolicyPal App on Google Play Store to enjoy different insurance products like term life, whole life, travel, critical illness insurances.

Protected up to specified limits by SDIC. This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation or endorsement by AMTD PolicyPal Group in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. You may wish to seek advice from a qualified adviser before buying the product. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Under AMTD Digital, AMTD PolicyPal Group consists of PolicyPal Pte. Ltd., Baoxianbaobao Pte. Ltd., PolicyPal Tech Pte. Ltd., and ValueChampion.

AMTD PolicyPal

AMTD PolicyPal is here to help you make informed and savvy financial decisions through the good times and the bad.

Recommended Articles

Leave a Reply

Your email address will not be published.