Hospitalisation Insurance for Kids: Should You Get It and Which Is the Best?

This post was originally posted on Planner Bee.

If parenthood has taught us anything, it is to expect the unexpected – both the joy and challenges of raising a thriving and healthy child. With rising costs of living and inflation, parenting now also involves responsible and careful financial planning to ensure that our children receive the best resources within our means.

Children are much more vulnerable and susceptible to illnesses and incidents, and hence for peace of mind, an Integrated Shield Plan (IP) is recommended. It was recently reported in a comparison done by the Ministry of Health that premiums across various insurance providers can differ largely, so it is important to make an informed choice based on your needs and preferences before committing to a plan.

Getting to know the basics

All Singapore Citizens and Permanent Residents are eligible for MediShield Life, which is a basic health insurance plan to provide coverage and protection for bigger hospitalisation bills. MediSave, on the other hand, can be used for a range of purposes including outpatient expenses and long-term care.

MediShield Life aims to protect the insured regardless of age or any pre-existing condition, and premiums are paid through the individual’s MediSave account (you can also pay for a dependant’s MediShield Life premiums using your own MediSave).

The Singapore government ensures that even those who are unable to afford premiums will still be covered under MediShield Life. The scheme provides coverage for those who are in wards up to Class B2 or Class C at public hospitals in Singapore. You can find out more about claim limits here. Generally speaking, MediShield Life is adequate if one chooses to seek subsidised treatment at public hospitals.

Read more: Changes to MediShield Life Coverage for Cancer Treatment and How It Affects Cancer Patients

Why the need for an Integrated Shield Plan then? For patients in wards above Class B2 or in private hospitals, MediShield Life will still provide some coverage, but it is minimal. You would still need to fork out a large portion of the bill which can be hefty because hospitalisation in non-subsidised wards will inevitably incur higher costs.

If you have been wondering if you need hospitalisation insurance for yourself or would like to have an overview of the plans available, we covered and compared the best integrated shield plans here. In this article, we will take a closer look at integrated shield plans for children.

Read more: What Insurance Should You Get For Your Child?

Best hospitalisation insurance for your child: an overview

The following comparison applies to private hospital coverage, where applicable:

Longest pre-hospitalisation coverage:

• PRUShield (180 days)
• Singlife Shield (180 days)
• HSBC Life Shield (180 days)
• Raffles Shield Private (180 days with panel doctors)
• Enhanced IncomeShield (180 days with panel doctors)
• AIA HealthShield Gold Max A (13 months with panel doctors)

Longest post-hospitalisation coverage:

• PRUShield (365 days)
• Singlife Shield (365 days)
• HSBC Life Shield (365 days)
• GREAT SupremeHealth P Plus (365 days with panel doctors)
• Enhanced Income Shield (365 days with panel doctors)
• AIA HealthShield Gold Max A (13 months with panel doctors)

Note: MediShield Life does not provide pre- and post- hospitalisation coverage so you will have to bear the expenses for all diagnostics and follow-up appointments if you have no IP coverage.

Number of Paediatric Specialists (Paediatric Medicine) listed on the panel (as of early October 2024):

• Great Eastern – 105
• Prudential – 95
• Raffles – 81
• AIA – 44
• HSBC – 39
• Income – 36
• Singlife – 81

Insurers that offer no-claims discounts:

• Prudential
• Singlife
• Great Eastern

Companies that offer benefits or discounts for parents who are also under the same insurer:

• Singlife Shield

Why you should consider getting hospitalisation insurance for your child

1. Possibly shorter waiting times

Some may feel that there is no compelling benefit to seek treatment in non-subsidised wards and so there is no need for additional hospitalisation insurance. However, one should consider the hospital bed crunch that Singapore public hospitals are facing, and how it is unlikely to ease up in the immediate future. According to a report by Channel News Asia, the median waiting time for a bed at a public hospital in the first three quarters of 2022 was about seven hours.

While that statistic is from the adults’ emergency department, the children’s emergency department can get busy too. KK Women’s and Children’s Hospital (KKH) sees about 15,000 paediatric emergency cases every month, and 3,800 on average for National University Hospital (NUH), so waiting times for non life-threatening conditions can be lengthy at times. It is quite a torment to sit through longer waiting times with our children as we know that even common ailments such as fever can spike quickly for children.

Understandably, parents would want their sick children to be seen as soon as possible. Having the option to be admitted to a private hospital or a better-class ward at a public hospital may cut down on some waiting time as the demand may be comparatively lower. Rest assured that life-threatening conditions will always be prioritised, whether you are visiting a public or private hospital.

2. Option to choose a preferred doctor

Under MediShield Life, the insured will not be able to choose their attending doctor. With an IP, however,, you enjoy the flexibility of choosing your own doctor. Furthermore, if you seek medical treatment in a private hospital from a doctor who is on the insurer’s panel, you will enjoy better coverage and benefits too. There is no such distinction when you admit in Class A or wards above Class B2 in public hospitals so you will not need to be mindful of the insurer’s panel.

3. Comfort

The next reason may not be the most important one, but it does matter. If your child is a light sleeper who is easily woken by the slightest sounds or motions, a Class A or a single bedder ward may give you and your child a more restful night even with regular temperature and vitals checks. When your child is hospitalised, a caregiver, likely you or your spouse will be spending the night with them. If you personally prefer more privacy, and if budget permits, an IP with the desired coverage may be your choice.

When is the best time to buy hospitalisation insurance for your child?

Presumably, a newborn rarely heads out of their home, at least in the first month except for routine checkups. The risk of contracting diseases or even a common cold should be low. However, if you have a school-going elder child and unless you are hyper-vigilant about who visits your newborn in the early and most vulnerable days and practise strict hygiene habits at home, buying hospitalisation insurance as early as you can would be the answer for some.

This is because as with all health insurance, we want to secure our plans early before any condition surfaces. Most insurers provide coverage for newborns who are at least 15 days old. It is worthy to note that MediShield Life offers protection for newborns from birth, but should you choose a better-class ward, you may have to fork out a larger sum of money.

A possible scenario is that you may want to put your two-month old newborn who is running a fever, in a Class A or single bedder ward to avoid contracting other possible infections. Doctors are a lot more cautious about infants below three months of age running a fever, and may want to keep them hospitalised while they run a battery of tests to find out what could possibly be the cause of the fever. Under such a circumstance, it would offer you some assurance that the hospital bill is taken care of to a large extent with a private IP for your child while you focus on their recovery.

In addition, newborns or young children are less likely to have pre-existing medical conditions so getting full comprehensive coverage for them at a younger age will be easy too.

What if my company provides coverage for my child too?

You may not require hospitalisation insurance for your child immediately if your company provides coverage that can be extended to them. However, bear in mind that job security can be uncertain in the current economic climate and as parents, we need to be one (or several) steps ahead to prepare for the worst case scenarios. If you decide to leave the company for better opportunities, there is also no guarantee that the next employer will provide similar coverage. If you prefer to give your child the same level of coverage even after you have left the company, then getting an IP early would be wise.

Conclusion

Expenses when you start a family can add up quickly, hence it is important to be prudent in our spending and provide an adequate safety net to tide us through unexpected costs incurred when our children need medical attention. Changes to IPs also happen from time to time after reviews, such as the announcement in 2018 that all riders purchased from March 8, 2018 will no longer enjoy full coverage and the insured will have to pay at least 5% of the hospital bill, depending on the tier of the rider purchased.

There is also the recent move to only cover cancer treatments that are on the government-approved list. If you have been pondering whether to purchase hospitalisation insurance for your child, arm yourself with the necessary information and comparison with MediShield Life before making an informed decision.

The best hospitalisation plan for your child will be one that can help defray a good part of medical treatment costs while still being affordable and within your family’s budget in the long run. If you need a professional opinion on what would work best for you and your family, Planner Bee is here for you. Email us at [email protected] today.