Renewing Health Insurance for SG Expats
Renewing your health insurance policy is an inevitable process for most expats in Singapore with private health insurance coverage. This process requires expats to reevaluate their medical needs to ensure that their plan continues to provide them with the coverage they need.
In this article, we will give you a step-by-step guide on the health insurance renewal process in Singapore as well as what you need to know and the factors you need to consider when renewing your health insurance.
Singapore medical insurance renewals
Expats in Singapore without Permanent Resident (PR) status don’t get the same government healthcare support as locals or PR holders. This means foreigners must pay full price for hospital care, which can add up quickly without good private medical insurance.
As a result, most expats have private insurance, either through their employer or purchased on their own.
Insurance plans don’t last forever. Most medical insurance plans are set for one year. At the end of this period, insurers usually offer a renewal. Typically, policyholders receive a notice about their renewal one to two months before the renewal date.
If the policyholder has auto-renewal set up through their insurer, this process may take place almost seamlessly, with only some documentation being sent to confirm the renewal and inform the policyholder of any changes to the policy.
To be sure, renewals are also a good time for policyholders to review their plan and any potential changes to it, and let their insurers know if there are any upgrades or changes they would like to make to the plan.
Health Insurance Renewals: Step-by-Step Guide
Renewing your health insurance is an essential step in ensuring continuous coverage and adapting to changing healthcare needs. Understanding the renewal process can help you make informed decisions about your policy.
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Review Your Current Policy
Review your current health insurance by checking premiums, deductibles, and benefits. Ensure your premiums are affordable and your deductible manageable. Identify any gaps in coverage, like high out-of-pocket costs, to help guide your renewal decisions.
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Assess Your Healthcare Needs
Consider any changes in your health or family situation that could impact your insurance needs. This includes new medications, treatments, or the addition of family members. Assess how these changes may require adjustments to your coverage to ensure you remain adequately protected.
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Compare Plans
Research other insurance options in Singapore by comparing premiums, coverage, and exclusions. Look for plans that may offer better benefits or lower costs. Assess whether a different policy could better meet your healthcare needs, ensuring you find the best fit for your situation.
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Contact Your Insurer
Contact your current insurance provider to discuss renewal options and any planned changes. Inquire about premium adjustments and updates to coverage to ensure you understand your options and any impacts on your policy.
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Make Adjustments
If needed, adjust your policy by modifying your deductible or adding coverage to better align with your financial situation and healthcare needs. This can help ensure you have adequate protection while managing costs effectively.
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Finalize Your Decision
After gathering all the information, decide whether to renew your current policy or switch to a new insurer. Make sure the plan covers all your medical needs, stays within your budget, and that you fully understand the terms and conditions before committing.
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Complete the Renewal Process
Follow your insurer’s instructions for renewing your policy or enrolling in a new one. Make sure to keep a copy of your updated policy for your records to ensure you have all the necessary documentation on hand.
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Stay Informed
Keep track of your policy details and any changes in coverage throughout the year. This will help you ensure that you remain adequately protected and can make informed decisions when needed. Regularly review your policy to stay updated on benefits and exclusions.
What to Watch Out for During Renewals
You’ve learned about the renewal process, but the key point is what can change. Even if you keep your medical insurance policy, your provider may change certain aspects at renewal time. Important things to look out for include premium inflation, changes in benefits, and deductibles.
Increasing Premiums
The number one thing people are going to care about when renewal time comes, as well as the thing that insurers are most likely to change, is the annual premium (cost) of the policy. It’s incredibly common for medical insurance plan premiums to increase each year.
Not all premium increases are made the same though, there are times when you may find that your insurer wants to increase your premiums by a double-digit percentage, thereby making a significant difference in the affordability of your plan.
If this is the case, finding a new plan with a more stable insurer may be something worth exploring.
Changing Benefits
Besides price, insurers will sometimes change the benefits on a plan. When benefits are added, it’s usually because the insurer has decided that the plan needs more value added in order to compete with similar offerings from their competitors.
When benefits are removed, it is often because the previous version of the plan was not profitable, and changes needed to be made to make it so.
If you are gaining benefits, then great. That’s nothing but good news for you, unless it comes with a healthy price increase, and the benefits added are not ones you are at all interested in. If benefits are being taken away, consider how valuable they might be to you.
If you think the benefits being removed are important enough, there may be a plan offered by other insurers that will offer them.
Benefit Maximums
A plan’s benefits often remain the same upon policy renewal, but the maximum benefit levels associated with them may change. The maximum benefit level dictates how much your insurance policy will reimburse you for a particular type of benefit during the course of a year.
If maximums are lowered, you may find that you have to pay out of pocket for some benefits when you did not have to previously, even though you are using your insurance in exactly the same way.
The lower the maximum benefit levels are on your plan, the less protection your policy gives you. If you feel that these maximums are going to be too low for your personal taste, don’t hesitate to start looking for a plan with maximums that work for you.
Deductibles
Renewal time gives you a chance to reduce your premiums. If your rates go up, you can manage costs by changing your deductible. The deductible is the amount you pay out of pocket for medical care before your insurance starts to help with the expenses.
A lower deductible generally means your plan will have a higher premium, and vice versa. So, if you decide you do not want to switch your plan, but you do want to lower your premium, you can usually raise the deductible at renewal time. Just let your insurance provider know.
Switching Insurers
Sometimes, your insurer may raise your premium so much that keeping the policy doesn’t make sense. In these cases, it’s okay to switch insurers. Just make sure to act quickly and be prepared for a change at renewal time each year to avoid any gaps in your coverage.
Working with a broker like Pacific Prime CXA can help you make informed decisions about your medical insurance. We can provide expert guidance, assist with comparing policies, and ensure smooth transitions between insurers, making the process easier for you.
Contact Pacific Prime CXA for Help
Now that you know what to consider when your medical insurance renewal comes around, you have some of the background knowledge necessary to decide if you would like to continue on with your current medical insurance plan in Singapore.
If everything seems to be on the up-and-up, and your policy is remaining relatively unchanged at renewal time, there’s a good chance you will simply renew it and continue on.
If you notice a substantial increase in your health insurance price or significant changes in your policy terms, it may be time to consider switching to a new plan or insurer.
Start by comparing options to find a plan that better suits your needs and budget. Evaluate potential new plans for improved coverage or additional benefits. Checking customer reviews can also help ensure you choose a reputable insurer.
Finding a new plan or insurance provider can be a time-consuming and confusing process, as there are numerous insurance companies in Singapore, each offering a range of different insurance policy options. Fortunately for you, Pacific Prime CXA can help!
Contact us today, and one of our experienced insurance advisers can compare your existing medical insurance plan against what else is available on the market, finding you an on-budget plan that has the benefits you need.
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content – no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.