The $$ and Sense On Health Insurance Budgeting

Why are my friends buying health insurance, and does it really matter when I’m currently fit and healthy? Isn’t it just another kiasu expense I have to support?

We’ve all asked these questions at some point, and the importance of prioritising health insurance often remains unclear. Let’s debunk these myths and shed some light on the matter.

While insurance premiums might seem like an extra expense we’d rather minimise, having adequate health coverage should be a priority if you value your well-being and peace of mind.

Let’s break it down for a 30-year-old Singaporean with an average monthly income of approximately $4300. 

A general guideline suggests budgeting between 3% to 10% of your monthly income on insurance, which roughly amounts to $135 to $450.

At this stage of life, when you’re concentrating on career growth and enjoying personal or family life, it is essential to consider protecting yourself with these 5 types of insurance policies. This will help ensure that your career growth and precious moments spent with friends and family will not derail due to unforeseen health and medical emergencies.

They are comprehensive medical coverage plans that take care of most of your medical expenses during hospitalisation. They offer various options, such as the choice to stay in single-bedded wards, which provide better amenities and better privacy. Additionally, IPs allow you to select preferred doctors and specialists from a panel and receive treatment at private hospitals.

Premiums range from $400 to $600 yearly depending on your preferences.

You can pay these premiums using your MediShield Life as long as it does not exceed the annual limit for your age group. For instance, if you are a 30-year-old, the limit is $300 per annum. Any amount exceeding this limit would need to be paid in cash.

Medical treatments can be costly, but there are options available to ease the financial burden. One such option is to consider taking on a rider with co-pay. This can help reduce your out-of-pocket medical expenses and complement your integrated shield plan, ensuring you receive the care you need without facing significant financial strain. 

Read more about Integrated Shield Plans here.

This insurance provides a lump sum payout upon diagnosis of a chronic medical condition, helping cover living expenses and additional medical fees. Budget around $20 – $80 monthly for a payout of $200,000 upon late-stage diagnosis.

Read more about Critical Illness policy here.

Under this insurance, you’ll be reimbursed for both outpatient and hospitalisation expenses arising from accidents. Examples of covered accidents encompass injuries resulting from traffic accidents, sports mishaps, or even routine daily activities. Allocate about $80 to $180 yearly.

Read more about Personal Accident policy here.

Singapore Citizens and Permanent Residents born in 1980 and later are automatically covered under CareShield Life, a disability insurance scheme that provides payouts for personal and medical expenses starting from the age of 30 onwards. Additionally, you have the option to enhance your coverage by purchasing a CareShield Life supplement from one of three private insurers: Great Eastern, Singlife, or NTUC Income, with a yearly budget starting at $200.

Read more about Disability Income insurance here.

This life insurance policy replaces your income in the event of total disability or provides a lump sum to your family if you pass away. Budget $22 to $35 monthly for the next 20 years to receive a lump sum payment of $500,000 upon total disability.

Read more about Term Life policy here.

For now, at 30 years old, it’s best to focus on health-related insurance and ensure you’re adequately covered by the first four types before considering life insurance.

Investing in your health and well-being through insurance can provide a safety net when you least expect it, giving you peace of mind and financial security in the face of uncertainties.


Insurance Type
Integrated Shield Plan (IP)
$400+ to $600+ per year
Another $100+ to $600+ per year for a Rider
Note: A portion is payable using CPF
Term Life
$264 – $420 per year
Critical Illness
$240 – $960 per year
Personal Accident
$80 to $180 per year
Disability Income
Min $200 per year

In a world rife with uncertainties, insurance premiums ranging from $108 to $247 per month may seem like an additional financial burden. However, when broken down, this amounts to a mere $3.60 to $8.23 a day (considering a 30-day month). For the price of a morning coffee or a quick snack, insurance offers unparalleled peace of mind and protection. 

Ultimately, this small daily expense is well worth the invaluable benefits it brings – safeguarding your assets, guaranteeing support for your family, and empowering you to embrace life knowing you are protected.

Take care and stay protected!

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