All You Need to Know About Top-up Insurance in Singapore

By Pacific Prime Singapore

May 2024

Most people who live and work in Singapore are more or less covered by an international health insurance plan. However, some plans may not have enough coverage to mitigate more serious, long-term issues. As a result, you might find yourself paying out of pocket unexpectedly.

Leading health insurance companies in Singapore offer "top-up" insurance policies as an additional layer of coverage on top of your existing primary insurance plan. These top-up plans provide extra financial security by covering medical costs that exceed the limits of your main insurance policy.

As such, our friends from Pacific Prime CXA are here to give you a lowdown on all the things you need to know about top-up insurance in Singapore.

The Limitations of Primary Health Insurance in Singapore



Your main health insurance policy, whether an individual plan or the one provided by your employer, is important for covering medical emergencies and unforeseen accidents that can happen.

While top insurance providers offer comprehensive coverage for a wide range of illnesses and hospitalizations, more severe issues may need additional coverage beyond what the primary policy offers.

You will also most likely need to pay out of pocket for treatments such as extended hospital stays, complementary treatments like physical therapy, long-term cancer care, kidney dialysis, and other specialized medical needs without top-up insurance plans.

Moreover, top-up insurance policies can benefit those who prefer to receive medical treatment at private hospitals rather than public hospitals. The additional layer of coverage provided by these top-up plans help soften the blow of the potentially higher costs of private healthcare services.

Our friends over at Pacific Prime CXA have over a decade of experience in the Singapore market, helping numerous corporate clients with their group insurance needs. Through their work, they have identified several areas where typical employer-sponsored insurance plans tend to have coverage gaps.

These gap areas include:

●     Low overall coverage limits for hospitalization and surgical procedures

●     Minimal or no coverage for outpatient services

●     Restricted coverage for cancer treatment and kidney dialysis

●     Limited choice of doctors or specialists due to restricted provider networks

●     Insurance coverage valid only within Singapore

●     No maternity benefits included

●     No dental benefits provided

●     No wellness benefits or coverage for vaccinations

●     A requirement to obtain a GP referral before consulting a specialist

●     No option to port or transfer the insurance plan

●     Pre-existing medical conditions are typically excluded from coverage

The Mechanics of a Top-up Insurance Plan



Simply put, top-up insurance offers an additional layer of coverage that extends beyond the limits of your primary health insurance plan.

A key feature of top-up plans is the deductible, which is the specified amount that the policyholder must pay out-of-pocket

The deductible represents a predetermined sum that the policyholder must pay out-of-pocket (unless already covered by their primary plan) before the supplemental coverage kicks in. For instance, if a top-up plan has a $5,000 deductible and the primary plan covers up to $5,000, the top-up policy will start providing coverage once medical bills exceed $5,000.

Moreover, top-up insurance activates as soon as your expenses exceed the deductible amount set by your primary insurance policy. This protects you from unforeseen additional costs that may arise.

Since the risk to the insurance provider begins only after the deductible is met, top-up plan premiums tend to be lower compared to many primary plans, while still offering a similar upper limit on coverage.

Time to Start Planning Financially

After taking the time to research the expected expenses in Singapore, keeping in mind your financial capabilities, and understanding your tax responsibilities, now is a good time to start making your financial plans, including your savings and potential investments.

Begin by considering what you ultimately want to save for. For example, it could be for your children’s tuition fees, housing, personal vehicles, or retirement. Prioritize what you want to save for, and decide how long it will take to save up.

It’s also wise to set up an emergency fund as an addition to your financial plan, should unexpected cases arise in the future.



Here’s How Pacific Prime CXA Can Help You

As an expat in Singapore, you can make efficient financial plans without a hurdle if you’ve researched the potential expenses, are aware of your financial limits, and know your tax responsibilities.

Nevertheless, there’s always the possibility of illnesses and injuries, which can add expensive medical bills to your financial plans, disrupting your usual expenses, and, in some cases, your emergency funds.

But fret not, Pacific Prime CXA’s team of experts is here to help you find the most suitable health insurance that caters to your budget and your particular healthcare needs, all with impartial expertise and top-quality service.

So contact us for a FREE no-obligation plan comparison.