The single greatest mistake I made in financial planning was not buying private insurance when I graduated, got a job and could afford the premiums.

 

We always think we’re young, at our physical peak, and that nothing is going to happen. And that if anything happens, MediShield is going to take care of it.

 

The first mistake is in thinking it only applies to one hospitalisation episode. You might have enough coverage or savings to tide you over once. But if you get a disease that puts you on the exclusion list, it’s going to be difficult to get insurance in the future. I’m fine now, but still uninsured because no private insurer wants to take on my case. One illness can affect you for years down the line. Heck, I can’t even get life insurance which only pays out in the event of disability or death. I’m a bit peeved that the insurance companies think I’ll drop dead so easily.

 

The second mistake is underestimating how high a hospital bill can go. Even with subsidies and a lower ward class, things still cost money. And there will be expenses that aren’t covered by MediShield. I keep using MediShield as an example because most Singaporeans have at least that level of coverage, while I had nothing except a flimsy company plan that was about as effective as an umbrella in a hurricane.

 

The third mistake is in seeing premiums as wasted money. I use the word “mistake” loosely in this sense. Others might really feel that MediShield is enough, and getting the highest-cost plan from a private insurer is just being kiasi. I wish I had been paranoid, take-no-chances, cover-my-ass kiasi, but you know what they say about wishes and horses.

 

I’m inspired to write this because one of my colleagues went to the doctor for a funny swelling and the initial tests point to bone cancer. One young person is an isolated case. Two, and you would be foolish not to heed the statistics and buy insurance.

 

Hope for the best, but plan for the worst.