Personal accident insurance can be costly, but its absence could be financially devastating.
Health insurance allows you to pass a large financial risk to the insurer in exchange for a (relatively) small premium, so saving you money. Health insurance premiums have risen faster than overall inflation and worker wages. Not having health insurance can have catastrophic financial consequences.
Consider how much it would be, for instance, to cover the costs of a hospital stay or a visit to the emergency department. You may easily rack up a charge in the hundreds, which could wipe out all of your savings or more.
Options and initiatives for cost reduction
Like clothes, there is no universal sizing for health insurance. Before deciding, it is necessary to consider your own and your family’s requirements carefully.
Once you have insurance, examine your coverage annually or if you experience a major life change, such as marriage or relocation. Understanding health insurance is difficult, so do not hesitate to seek assistance from your employer, a trusted advisor, or another individual.
Options for coverage for young people
General health insurance from a company allows young adults to remain on their parent’s plan until adulthood. This may be the case even if you are married, no longer live with your parents or have graduated from high school. Check with your parent’s plan for enrollment period details.
A student health plan may be able to provide health insurance to college students. This can be a cost-effective choice but be sure the coverage qualifies as “qualifying coverage.” Otherwise, there may be reduced benefits or specific exclusions. However, a student plan may be a viable alternative if coverage under a parent’s plan is unavailable.
What about limited-duration, short-term plans?
Short-term plans are concerning as some individuals would choose them based only on their reduced premiums without understanding what they’re purchasing.
These policies typically last up to a year. They are less expensive than traditional plans, partly because they offer less coverage and fewer consumer safeguards than plans. This implies that these plans frequently exclude pregnancy and mental health coverage and that you may be denied coverage for pre-existing diseases such as asthma and cancer.
In certain circumstances, these plans may make sense, and “any” insurance is better than none, but if you’re tempted to get one, ensure you understand what is and is not covered.
Coverage choices for employees
Many Singaporeans receive personal accident insurance through their employer. Employers frequently sponsor this form of coverage to lower employee costs.
You may have multiple options with varied premiums, co-payments, and deductibles, as well as access to a different network of health care providers; therefore, you should take the time to choose the optimal plan. Consider health insurance when moving employment and during your employer’s open enrollment period, during which you can make changes.
If you do not have coverage through your employer, you can find health insurance on healthcare.gov through federal or state exchanges. Premium Tax Credits (PTCs) may assist in reducing monthly rates. Or, if your income is low enough, you may be eligible for coverage under government programs.
Remember that enrollment windows and circumstances exist, so you must prepare for enrollment. Health care navigators provide impartial, free, over-the-phone, and in-person assistance, as well as assistance in shopping for and enrolling in affordable coverage.
Many young adults are unfamiliar with paying for their personal accident insurance, which may seem unimportant. However, the opposite is the case. Having adequate health insurance is a critical component of any sound financial plan. It is essential to your financial well-being since it protects you from financial disaster. Getting the appropriate type and amount of health insurance is one of the wisest financial decisions you can make.
The insurer’s website is the best way to learn about personal accident insurance, its features, and fine print. You may also be eligible for complementary coverage and exclusive rewards.