Monday, October 02, 2006

Is it advisable to downgrade to a lower plan?


Dear Mr Tan

A few years back, my family upgraded Incomeshield plan from B to A.

For me personally, should I be hospitalised, I would like to stay in a subsidised ward, ie B2. That being the case, since the deductible and co-ins is higher for A plan than B, isn't it advisible for me to downgrade from Plan A to B?



Dear AL

We advise our policyholders that if they are comfortable with B1 or B2 ward, there is no need to purchase a higher medical plan and pay a higher premium.

As we grow older and move to a higher age-band, the premium will increase. We should move to a lower plan so that the premium remain affordable. There is a higher government subsidy for restructured hospitals at the lower class wards.

If our policyholder is insured under a higher plan and opt to be treated in a lower class ward, we apply the deductible of the lower ward. This is reflected in our FAQ:

Tan Kin Lian

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