Hospital insurance leaves Singaporean patients S$36,000 short

96% of survivors encountered expenses they had not expected.

Critical illness patients in Singapore may still have to pay about $28,346 (S$36,000) in out-of-pocket medical expenses despite having hospitalisation insurance, according to a Singlife study that found the wider cost of treatment and recovery can reach about $133,071 (S$169,000).

The out-of-pocket expenses were largely due to deductibles and co-payments, Singlife said. Caregivers surveyed also reported that some medication costs were not fully reimbursed by hospitalisation insurance.

Singlife said the findings show that insurance planning for critical illness needs to take into account costs beyond hospital bills.

Caregivers reported average treatment and recovery expenses of $3,876 (S$4,922) a month.

Based on an average recovery period of 27 months, this amounted to about $104,641 (S$132,894). 

Together with average out-of-pocket medical expenses of $28,374 (S$36,035), the estimated total cost was $133,015 (S$168,929), or about $133,071 (S$169,000). The estimate excludes hospitalisation bills and income replacement.

Recovery expenses included rehabilitation and therapy, diagnostic tests, medication, specialist consultations, special diets and nutritional supplements, transport and caregiving support. 

In some cases, monthly treatment and recovery expenses exceeded $7,874 (S$10,000).

Singlife's claims analysis found that treatment and recovery-related activity continued for an average of 27 months and, in some cases, lasted as long as 237 months, or nearly 20 years. The average critical illness claimant was 44 years old.

The study also found that 96% of critical illness survivors faced unexpected expenses, whilst four in five used their retirement savings to help meet their costs.

The Life Insurance Association Singapore separates critical illness-related protection into different needs. 

Medical protection, including MediShield Life, Integrated Shield Plans and MediSave, is intended to meet immediate medical expenses, whilst critical illness insurance is meant to help with household expenses and debt payments during an expected period away from work.

Singlife said recovery can create another set of expenses that may not be fully addressed by hospitalisation coverage. These can include rehabilitation, medication, transport, caregiving and other day-to-day costs after a patient leaves hospital.

The financial pressure can also extend to family members. Two in three critical illness survivors surveyed relied on family caregivers during recovery. Amongst caregivers, 58% reported financial strain, whilst 69% reported mental or emotional strain.

Singlife said critical illness planning should therefore cover recovery costs as well as treatment and income replacement. 

It recommended that consumers be given a clearer understanding of the expenses that can arise after treatment, whilst calling for better coordination of rehabilitation, caregiving, financial assistance and healthcare services.

The Singlife Critical Illness Study was based on two surveys conducted between March and April 2026 involving 1,535 respondents, as well as 20 years of health claims data from 2005 to 2025. 

The claims analysis covered about 8,700 customers who made critical illness-related claims from more than half a million policyholders.

Singlife said the figures are indicative and actual costs can vary depending on the illness, its severity, treatment, recovery period and caregiving needs.