How I Used the Health Insurance Planner to Balance Comprehensive Coverage and Affordable Premiums

I got a shock upon receiving my bill for my Integrated Shield plan (IP) last year. Even though I’m still in my 30s, it came up to almost S$2,000. My private IP + rider bill in 2020 vs. 2024 showed a steep rise I hadn’t anticipated. I couldn’t even fathom what paying that amount—or more—for decades would look like. My insurance agent advised me to stick to the plan because it offered the “highest coverage” and a “20% no-claims discount,” which meant if not for that discount, my bill would have been over S$2,300. But that made me wonder: am I holding onto this plan just for the savings, without checking if the coverage truly fits my needs and budget?

Being in the sandwiched generation—with two young kids and elderly parents to support—our household budget is tight. My husband and I juggle finances for seven people: ourselves, our kids, and parents. Paying for multiple insurance plans for everyone isn’t easy. We bought private coverage initially for peace of mind, but with healthcare costs rising rapidly, it’s crucial to separate needs from wants.

How much protection is too much?

If you want additional coverage, you can opt for:

• Integrated Shield Plans (IP) – they cover bigger hospital bills, especially if you choose private hospitals.
• Riders – these help to reduce out-of-pocket expenses like deductibles and co-insurance.

I started weighing my options. Public hospitals in Class B2 or C wards come with government subsidies, and bills are covered by MediShield Life, with premiums payable through MediSave. So maybe I didn’t need to splurge on a private hospital IP plan.

What coverage do we already have?

• MediShield Life: Designed to cover 9 out of 10 subsidised bills, with deductibles and co-insurance payable by MediSave.
• CareShield Life/ElderShield: Provide long-term care payouts in cases of severe disability.

When we consider additional coverage like IPs and riders, we have to ask if this over-insures us for situations MediShield Life already covers. Plus, premiums for private plans shoot up dramatically as we age. Private insurance premiums can be up to five times those of MediShield Life by the time we hit our 70s or 80s. Will we realistically be able to afford them when we might be retired and not earning?

Looking back, my husband and I in our 20s signed up for maximum coverage without thinking much about how premiums would climb as we aged or how our financial responsibilities would grow—from raising kids to supporting elderly parents. Most friends I talked to had done the same. When we’re young and healthy, we want the best coverage and premiums don’t hurt much, but years later, those premiums pile up.

In fact, when you’re paying for coverage across seven people in your household, the cost can really weigh you down. That’s when we realized that just because we initially signed up for the highest plan, doesn’t mean we must stick with it forever.

Breaking free from the sunk cost fallacy

Seeing premiums go up year after year made me realize sticking with the same plan because we’ve already invested in it is a sunk cost fallacy. So with the recent significant increase, my husband and I downgraded our private hospital IP to a Class A plan—a choice that felt more practical and affordable for the long haul.

When I discovered the Health Insurance Planner—an online tool launched by the government—I wished it had been around when we were manually reviewing our plans. This tool helps Singaporeans compare health insurance premiums and plans across insurers and understand projected long-term MediSave and cash expenses.

Previously, comparing quotes meant multiple meetings, research, and endless questions—it took months before we had clarity. But with the planner, we got a clear picture in minutes.

The Health Insurance Planner gave me clarity

I input just four pieces of data, and it showed me estimated premiums over time. Here’s a shocker: by 60, I’ll be paying at least S$11,200 in cash every year for healthcare insurance alone. Considering I’m targeting S$5,000 in monthly expenses for retirement, almost 20% of my budget would go toward insurance! That hardly feels sustainable, especially since MAS recommends not spending more than 15% of income on insurance.

The planner also showed that rider premiums get costlier with age, making it harder to maintain coverage. Using the planner, I compared my current plan with others and saw that the Class A plan I was considering switching to still offers sufficient protection but with lower long-term costs.

It projects costs up to 30 years or age 90, rounding to the nearest decade, giving me a helpful view of future expenses. It also made me think about dropping the rider down the line if premiums become too much.

Why you should consider using the Health Insurance Planner

If your IP premiums are creeping up and making you nervous, try out the planner yourself. It’s easy to compare your current plan against alternatives and see how premiums could change. Plus, you can download a detailed PDF report with personalized projections to chat with your insurance agent and make an informed choice.

Some questions it can help you answer:

• Are you over-insured for scenarios already covered by MediShield Life?
• When do insurance premiums stop being worth the trade-off compared to other financial goals?

Knowing these can give you the confidence to decide how much health insurance fits your budget and lifestyle.

Health coverage isn’t about the most expensive plan

Insurance isn’t a “set and forget” deal. It’s smart to review your plan regularly, especially as your responsibilities—like raising kids and supporting elderly parents—change. Don’t just aim for the highest coverage; think about what’s affordable and practical over decades.

Try to review your IP and riders with your advisor every few years. Premiums increase, and your care preferences might shift with age. Downgrading plans or adjusting coverage isn’t failure—it’s smart planning.

My personal takeaway

After downgrading earlier this year, I probably won’t change plans soon. But the Health Insurance Planner has helped me visualize the long-term impact of rising premiums. It forced me to ask some tough questions: Do I mainly prefer public healthcare where MediShield Life covers bills? Do I really need extra insurance? Or could money be better used elsewhere—on the kids, our parents, or our retirement?

Having this clarity helped me have open talks with my husband. While he used to say, “Let’s pay for peace of mind,” seeing the planner’s projections made him realize overspending on insurance could leave less for other priorities. He’s now open to downgrading or even removing riders in the future if needed.

At the end of the day, it’s about finding balance between peace of mind and practical finances—not over-insuring just because it feels safer.

Things to remember

• If you downgrade your current insurer’s IP plan, no new premiums loading or exclusions apply.
• If you switch insurers, new underwriting may be required—so get approval first before terminating your old plan.
• The Health Insurance Planner is an excellent starting point to understand potential costs and make informed decisions.

You can also explore Plan Life Ahead, Now! with CPF, a one-stop financial guidance platform that helps you make informed decisions throughout life using your PLAN with CPF dashboard.

Important note: My choice to downgrade doesn’t mean you should. This article is not financial advice—it’s simply personal experience. Please use the planner, research, and speak with your advisor and loved ones before making decisions.

Health insurance is a personal journey and requires ongoing review to ensure it fits your evolving needs and budget. Don’t wait until premiums shock you; plan ahead and use the tools available to stay in control of your healthcare protection.

Try the Health Insurance Planner today and take control of your health coverage future!