Should I remain on my old hospitalization plan (100% coverage) or switch to the new ISP (with 5% co-insurance)?

I received my bill for my AXA ISP rider and it seems like the premium went up 2x - from $300 to $600 for Plan A (covers private) which is significant in my opinion.

Did a check and realised the new ISP (with 5% copayment) is cheaper at 300 plus. Of course, the caveat is that the 5% co insurance may potentially cost more if I were to get hospitalised.

So my question is, should I switch to the new ISP to save on the rider? Or continue with my old ISP for 100% coverage.

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Discussion (3)

What are your thoughts?

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Duane Cheng

26 Dec 2020

Financial Consultant at Prudential Assurance Company Singapore

Dear Poster,

This is a very pertinent question that is faced by a majority of my clients. Currently, for those who are under the 100% plans, it mainly falls into two categories, Prudential and Non-Prudential. As we are the only company to employ a claims-based approach to ensure that premiums do not rise significantly, even with the 100% coverage, we are the most affordable to date.

The point which i share across always, is whether you feel that the 100% coverage is important in your personal portfolio. If yes, then continue to provision for the added costs. However, there is a possibility that you will be priced out of the 100% coverage, as most companies are now shifting towards cost-mitigation in terms of hospitalisation claims. Unfortately, your shift to the 5% plan, would be a sooner or later proposition, if there is a continued trend of increased premiums.