Why does LIA warn against treating health insurance as savings?

Instead, it provides financial protection against unforeseen medical events.

The Life Insurance Association, Singapore (LIA Singapore) is urging individuals to consult qualified financial adviser representatives (FARs) before buying private health insurance and to review coverage periodically to ensure it meets both current and future needs.

LIA Singapore stressed that private health insurance should not be evaluated as a savings plan or an investment. 
Instead, it provides financial protection against unforeseen medical events, allowing individuals to access treatment without worrying about short-term costs.

When choosing or reviewing Integrated Shield Plans (IPs) and riders, individuals should consider coverage relative to healthcare needs, preferred hospital ward, and budget. IPs supplement the basic public health insurance, MediShield Life, offering coverage at higher-class public wards or private hospitals and options to select doctors. 

Riders can further reduce out-of-pocket costs and cover treatments excluded from standard IPs.

Affordability over time is a key factor. Premiums can rise with age, medical inflation, and changes in treatment costs. 

Whilst MediSave can cover part of the premiums, individuals should evaluate the long-term impact on their finances. 

LIA Singapore advises reviewing policies at key life stages, including when entering the workforce, during midlife (41–51), and around retirement at 55, to ensure coverage remains appropriate.

If premiums become unaffordable, policyholders may consider switching to lower-tier plans or reassessing coverage with their FARs. 

Downgrading or dropping riders should only be done after a thorough financial needs analysis, as riders often cover treatments not included in standard IPs and help manage out-of-pocket costs.