Medical Insurance
DO YOU NEED MEDICAL INSURANCE?
Medical Insurance or also known as Hospital Insurance, pays for your hospitalisation fees up to a specified limit.
WHO SHOULD BUY MEDICAL INSURANCE?
Medical insurance is the most basic level of insurance that everyone should get. Even infants should be covered by Medical Insurance.
In Singapore, all Singapore Citizens and Permanent Residents are automatically covered by the national health insurance scheme, MediShield Life. MediShield Life is designed for B2/C wards in restructured hospital and has limits on the benefits. You may want to consider buying a Medisave-approved Integrated Shield Plan and its optional rider(s) from a private insurer if you prefer:
As an Integrated Shield Plan provides additional private insurance coverage, there will be an additional premium that has to be paid using your Medisave up to an Additional Withdrawal Limit (AWL). The amount in excess of AWL will be payable by cash. It is important to consider the affordability of your Integrated Shield Plan premium in the long term.
If your employer already provides some medical coverage, you may still want to consider buying a policy with an Integrated Shield Plan as you would lose your employer's cover if you are in-between jobs or if your new employer does not provide medical coverage. Coverage provided by employers will also have a limit. This means that you will need to cover very large medical expenses that will be in excess of your employer's coverage.
If you are hospitalised for an extended period of time, your employer may terminate your employment, leaving you with insufficient medical coverage. Furthermore, should you change jobs, your coverage from your employer may not cover pre-existing conditions.
HOW MUCH AND WHAT TYPE OF MEDICAL INSURANCE SHOULD YOU BUY?
There are a few considerations when buying Medical Insurance:
WHAT DOES AN INTEGRATED SHIELD PLAN LOOK LIKE?
An Integrated Shield Plan will provide coverage for inpatient medical expenses.
The plan may not fully pay for actual medical expenses incurred if:
You would need to weigh a more comprehensive coverage against the cost of premium and consider if you are able to afford the premium amount.
Premium rates for Medical Insurance will increase with age. While the premium amount is not guaranteed, insurers typically offer guaranteed acceptance of the policy for renewal.
The above are subject to the definitions as set out by the insurance companies.
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