Why Cancer Insurance Is Worth Considering

Cancer treatment can be incredibly costly, with expenses extending beyond just medical fees to cover non-medical costs such as loss of income and additional household support. With cancer drug spending in Singapore growing significantly in recent years (growing at a rate of 20% annually between 2016 to 2019), it is crucial to consider the financial safeguards available. This is where cancer insurance comes into play, providing a vital safety net for those facing this challenging diagnosis.

The Rising Cost Of Cancer Treatment

Cancer treatment is not just a medical challenge but also a financial one. The costs can escalate quickly, especially if the treatment is prolonged. On top of medical bills, patients and their families often face non-medical expenses, such as:

• Loss of income during treatment and recovery.
• Hiring domestic help for household chores, particularly if the patient is the primary caregiver in the family.

Private health insurance, and specifically cancer insurance, becomes a crucial consideration to manage these financial burdens effectively.

Government Schemes: A Starting Point

In Singapore, government schemes like MediSave and MediShield Life provide essential financial coverage for cancer and other critical illnesses. However, these schemes have limitations that may not fully cover all the expenses associated with cancer treatment.

MediSave

MediSave is a compulsory medical savings scheme that allows Singaporeans to use their savings for some cancer-related expenses. While it covers some investigations, surgery, medication, and hospitalisation, there are withdrawal limits. For example:

• Surgery and hospitalisation: Up to S$550 per day for the first two days of stay in the hospital and up to S$400 per day thereafter.
• Day surgeries: Up to S$300 per day for hospital charges such as daily ward charges, daily treatment fees, investigations, and medications.
• Drug treatments for cancer patients: A limit of S$600 or S$1,200 per month per patient, depending on the cancer drug treatment the patient is receiving.
• Cancer drug services and other cancer scans: Capped at S$600 per year per patient for patients receiving treatment for one primary cancer or S$1,200 per year per patient for patients receiving treatment for multiple primary cancers.

Given the potentially high costs of cancer treatment, it is crucial to assess whether your MediSave account holds sufficient funds.

MediShield Life

MediShield Life is a medical insurance scheme providing additional coverage for large hospitalisation bills that MediSave cannot fully cover. It is particularly useful for serious and prolonged illnesses like cancer. However, it also has its limitations:

• Maximum claim limit of S$150,000 per year.
• Covers S$200 to S$9,600 per month, depending on cancer drug treatment and S$3,600 per year for cancer drug services.

These schemes are beneficial, but they may not cover all the costs, especially non-medical expenses and the full extent of cancer treatment.

The Role Of Private Health Insurance

Comprehensive private health insurance offers broader coverage and can be a viable option for those who can afford it. However, not all policies provide adequate cancer coverage. It is important to scrutinise the details of your policy and consider whether additional cancer-specific insurance is necessary.

Cancer-Specific Insurance Policies

For those seeking focused coverage for cancer, cancer-specific insurance policies can be a more affordable alternative to comprehensive health insurance. These policies typically provide lump-sum payouts upon diagnosis, including early-stage cancers, helping to manage both medical and non-medical expenses.

Why Choose Cancer Insurance?

1. Financial Security – Provides a lump-sum payout upon diagnosis, helping to cover various costs associated with cancer treatment and recovery.
2. Non-Medical Expenses – Helps manage the financial burden of non-medical costs such as loss of income and domestic help.
3. Supplementary Coverage – Complements existing government schemes and private health insurance, ensuring comprehensive financial protection.

Key Takeaway

Cancer insurance is a crucial consideration for anyone concerned about the financial impact of a cancer diagnosis. While government schemes like MediSave and MediShield Life offer foundational coverage, they may not be sufficient to cover all expenses. Private health insurance, particularly cancer-specific policies, provides an additional layer of financial security, helping to manage both medical and non-medical costs effectively. By understanding and utilising these insurance options, you can ensure that you and your loved ones are protected against the financial challenges that come with battling cancer.

For more insights on managing cancer treatment costs in Singapore, read our article on the Cost of Cancer Treatment in Singapore

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