Congratulations! You’ve managed to beat cancer and are now a proud survivor. However, having undergone multiple treatments and hospital stays, you may find yourself saddled with debts. With over half a million Singaporeans admitted into the hospital last year, 1 this accounts for approximately 10% of our population.2 Hence, if you were to unfortunately be hospitalised would you then be prepared for the medical fees?
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The costs
Notoriously expensive, you may be in for a rude shock when you take a look at your hospital bill. With medical bills possibly amounting between a few hundred thousand3 and up to $1 million for cancer treatment, your medical bill could easily land you in debt.4
A quick check for various medical procedures found that relatively simple procedures such as the hospitalisation due to dengue and other viral illnesses could cost up to an average of $7,301 while the cost of an uncomplicated stroke procedure could be as much as $23,099.5 With these excluding the doctor’s fees and the costs incurred from complications and follow-up treatment, your final hospital bill may be more expensive than what you are prepared for.6

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Are your savings and/or insurance sufficient?
Firstly, calculate your assets and insurance coverage levels. This would then allow you to determine if you have enough for any potential medical expenses. Additionally, while Medishield provides basic health insurance for all Singaporeans and Permanent Residents (PR), it is still important for us to understand the restrictions that may apply. This is because with deductibles and co-payments, we may therefore still be required to bear a portion of the medical bills. Moreover, your policy may also have exclusions such as those for an existing illness and/or condition that could prevent the pay-outs in certain circumstances.
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What happens to your bills if you pass on?
Next, if you were to unfortunately pass on, your loved ones may then have to assume the responsibility of your bills. This would occur if your assets and insurance pay-outs and insufficient to repay your debts. Furthermore, debts from a joint-mortgage and/or account would also be inherited by your family members with any other personal debts payable out of your estate.7 This therefore leaves your family with only the remaining assets, which may be insufficient for their immediate expenses and other daily needs.
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And if you survived...
Likely to require time off from work to recuperate, you may find your finances stretched thin especially if you are the sole breadwinner of your family. Furthermore, cost of your follow-up treatment and medicine could also cost you a hefty sum. Therefore, it is important that you set aside an emergency fund to complement your savings and insurance coverage levels. A regular review of your insurance portfolio could also ensure that you have adequate coverage. This includes calculating your current monthly expenses and the amount that required as income replacement as this would allow you to receive optimal pay-outs during your recovery period.
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How FSMOne can help you get on track
Our team of friendly advisers are able to help you review your financial objectives, long term commitments, and offer you investment and insurance advice specific to your needs. If you would like assistance in reviewing your financial and protection portfolio, or simply to get a quote for an insurance plan, you can contact our advisers at advisory@fundsupermart.com.
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
3Source: http://www.straitstimes.com/business/cancer-patient-faces-ordeal-over-settling-320k-bill
4Source: http://www.theindependent.sg/1m-for-hospital-bill-healthcare-or-nightmare/
6Source: http://www.straitstimes.com/opinion/two-quick-fixes-to-rein-in-healthcare-costs
7Source: https://singaporelegaladvice.com/law-articles/what-happens-to-your-debts-when-you-die/
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