Adrian Khiat wrote in to the ST Forum on the moral hazards of having an insurance plan that covers 100% of the hospitalization bill.
I agree with most of his view points.
Anyone who has been to a buffet will know what I mean. The eating behavior is very different when you are paying for a buffet compared to paying for an ala carte meal.
If you do not have to pay a single cent for your entire hospitalization, you will have a greater tendency to go for the best option where wards and treatment are concerned.
Single bed or 6-bedded? Of course you will go for the single bed.
Higher claims will ultimately lead to higher premiums.
The higher premiums that you pay over a lifetime might actually be more than the co-payment that you would have to pay from time to time if you had opted for an insurance plan that requires a little bit of co-payment on your part.
So, before you take up a plan that covers 100% of your hospitalization bills, take a look at the premiums carefully and ask yourself whether you will be able to afford the premiums when you are 60+ or 70+ years old.