Health insurance is important for protecting your health and finances. However, it’s very important to make sure you’re not spending more than necessary on your coverage. Paying too much can strain your budget. In some cases, it may not even provide extra benefits. There are a few signs that can help you identify if you are overpaying.

Learn more: Health Insurance In Singapore >>

Coverage Misalignment with Your Needs

Paying for coverage you don’t need can inflate your premiums. For example, if your policy includes maternity benefits but you don’t plan to have children, you’re incurring unnecessary costs. Regularly reviewing your policy to ensure it aligns with your current health needs and life stage can help prevent overpayment.

Premiums Exceeding Average Costs

Health insurance premiums vary based on factors like age and coverage level. In Singapore, a 45-year-old expatriate typically pays around SGD 3,200 per year for health insurance. 

Premiums increase with age; a 75-year-old might pay over SGD 200,000 annually. If your premiums are significantly higher than these averages, it may indicate overpayment.

Source: InterNations

Premiums Consuming a Large Portion of Income

Financial experts often recommend that health insurance premiums should not exceed 8.5% of your household income. If your premiums consume a larger percentage of your income, it could strain your finances, suggesting you’re overpaying.

Unjustified Premium Increases

While medical costs are rising globally, with Singapore’s medical insurance costs projected to increase by 12% in 2025, excessive premium hikes beyond this rate should prompt a policy review. Significant increases without corresponding changes in coverage or personal health status may indicate overpayment.