If a SG/PR has comprehensive company insurance, is it still worthwhile to triple cover by buying enhanced shield? - Seedly
Seedly logo
Seedly logo
 

AMA Christopher Tan

Nicholas Chan

Asked on 23 Jan 2019

If a SG/PR has comprehensive company insurance, is it still worthwhile to triple cover by buying enhanced shield?

I.e. already double cover with company insurance & Medishield life + careshield life.

0 comments

4 answers

Answer Now

Answers (4)

Sort By

Hi Nicholas, thank you for your question. Some of your questions have been answered by others here. But allow me to try and put it together.

  1. One of the problems with company insurance is that it is not portable. When you leave your company one day or are retired, you will need to have your own insurance. At that time, you may either be no longer insurable or have a pre-existing illness that cannot be covered. So it is better to have your own personal hospitalization cover now while you are still healthy and insurable.

  2. But all of us today have MediShield Life, you will say. Isn’t that sufficient? The answer depends on your healthcare expectation and affordability. MediShield Life is meant for big bills incurred in public hospital’s B2/C ward. It has an annual claim limit of $100K and also not every expenses incurred is fully claimable. There is also no claim for pre and post hospitalization charges. You also cannot buy riders to lower the payable amount due to deductible and co-payments. In short, the claim amount is much lower than an IP plan. If you can accept that, there is no need to upgrade to an IP.

  3. However, if you want the options of staying in a B1 and above ward, choose your own consultant, avoid the long queues at public hospitals, then you will have to upgrade to the IP. Of course, you must be able and willing to pay a higher premium.

  4. CareShield Life (to be launched in 2021) is a severe disability plan and not a hospital plan. It pays $600 per month at the start when one cannot perform 3 out of 6 activities of daily living. This should not be confused with IP or Medishield Life.

0 comments

👍 2

If you feel your company's insurance is comprehensive, you could consider enhancing your medical coverage with Raffles shield.

Look for the point on "high deductible option" mentioned in the post. It is designed to have the least overlap with your corporate health coverage and gives you the safety of having coverage when you leave your company someday.

https://www.theastuteparent.com/2018/07/raffles-shield-plan-an-analysis-you-should-see/

2 comments

👍 1
Nicholas Chan
Nicholas Chan

25 Jan 2019

thanks interesting new plan.
Nicholas Chan
Nicholas Chan

25 Jan 2019

any other such plans? ideally would be $0 cover now for a minimal fee, ensures insurability, but only kicks in when one pays the full premium.

Yes, because your employer insurance plan would most likely not allow you to carry on after you retire which is the most important time to be covered for H&S.

And especially now if you're still healthy, you can get insured. Don't wait for pre-existing conditions to haunt you twice.

0 comments

👍 0
Nicholas Chan
Nicholas Chan
Level 6. Master
Updated on 07 Jun 2019

Thanks Christopher & all for your replies. Is there a health insurance out there that has $0 present cover, but charges minimal to ensure one's insurability, with the cover only starting when a person pays the full premium?

3 comments

👍 0

1 more comments

Christopher Tan
Christopher Tan

23 Jan 2019

Hi Nicholas, that is a good thought. However, the downside of this method is that we will never know when we will be hospitalized or how much we will incur in terms of medical expenses. At that time, we might not have saved enough in MA (even if we can use the full of it) to cope with the bill. But since premiums for MediShield Life/IP plans can be paid in full (for MediShield Life) or in part (for IP) using monies in Medisave, it is not a bad idea to top up some money in Medisave (if you have not reached the Basic Health Sum) so that the compounding 4% p.a interest can grow your Medisave account to pay these premiums.
Loh Tat Tian
Loh Tat Tian

24 Jan 2019

I would much prefer you to see your needs. This is because, based on the amount allowable to use for private health shield, the older you are, the more likely you will need to top up cash just to purchase the private shield. Full usage of medisave (without rider) can be adjusted by downgrading your shield plan.