facebookFor hospitalisation insurance, is it better to pay more premiums to have a plan which only needs to pay 5% co-payment. Or to pay less premiums but foot the deductibles? - Seedly

Anonymous

29 Jul 2020

Insurance

For hospitalisation insurance, is it better to pay more premiums to have a plan which only needs to pay 5% co-payment. Or to pay less premiums but foot the deductibles?

Im considering between GE and Aviva. To me, both the basic IPs are quite similar in terms of benefits but it's the riders where they differ. I'm planning to get the private hospital coverage with rider.

GE covers deductibles and you pay only 5%, with a cap of 3k with certificate of pre authorization. Their premiums are higher at about 1.5-2 times that of Aviva
Aviva covers 50% of co-payment (subject to same cap as GE) but I pay deductibles. For private it's about 5k and B1 3.7k.

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Pang Zhe Liang

29 Jul 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

You need to conduct risk management to determine the amount of risk that you are willing to undertake in exchange for the premium savings that you get.

For me, my personal philosophy is to get the best healthcare insurance coverage that I can afford. Above all, I only have one health and I only live once. Therefore, I prefer to place more emphasis on recovery than cost that I may potentially need to pay.

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