Choosing the right health insurance is essential for protecting both your health and your finances. However, many people in Singapore make avoidable mistakes when selecting a plan. A high percentage of young Singaporeans are under-insured due to a focus on immediate needs and experiences instead of long-term protection. By understanding these common pitfalls, you can make smarter choices and ensure you have the right coverage for your future.

Learn more: Health Insurance In Singapore >>

Rushing into a Policy Without Adequate Research

Many people rush into buying health insurance without fully understanding the policy details, which can result in insufficient coverage or surprise costs. It’s important to take a step back and assess your financial situation and healthcare needs before choosing a plan. 

Take the time to compare different policies, looking at factors like premiums, coverage limits, and exclusions. This thoughtful approach will help you pick a policy that fits both your needs and your budget.

Overlooking the Importance of Full Health Disclosure

Failing to disclose pre-existing medical conditions when applying for health insurance is a major mistake. Some people hold back health information to avoid higher premiums or exclusions, but this can backfire. If an insurance company discovers undisclosed health issues, they can reject claims or even cancel the policy. 

That’s why it’s important to be upfront and provide accurate health information during the application process. This helps make sure everything is clear and avoids complications down the road.

Assuming Employer-Provided Insurance Is Sufficient

Relying solely on employer-provided health insurance can be risky. While these plans offer basic coverage, they often don’t meet all of your individual or family healthcare needs. Plus, since employer-sponsored policies are linked to your job, leaving the company could mean losing your coverage. 

It’s a good idea to assess how comprehensive your employer’s plan is and consider adding personal health insurance to make sure you have continuous and adequate protection.

Ignoring the Effect of Deduction in Policy Costs

Many individuals focus solely on premium amounts when selecting a health insurance policy, overlooking the ‘effect of deduction.’ This term refers to the total cost of the policy, including administrative fees, marketing expenses, and the insurer’s profit margin. 

A high effect of deduction can significantly reduce the policy’s value over time. It’s important to review the benefits illustration provided by the insurer to understand these costs and choose a policy with a reasonable effect of deduction.

Learn more: Insurance Deductible