Avoid triple insurance

Dear Mr Tan,

I have bought the incomeshield Plan P for my children and Plan A for me and my spouse. We are also covered under the Hospital and Surgical Plan with NTUC.

Is it neccessary for us to insure under H&S if we are covered under the incomeshield? Moreover, I and my wife have company hospital insurance coverage.

IF it's not neccessary to cover under the H&S I would rather use the money to invest.

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REPLY:

At present, you have triple insurance (ie company plan, Incomeshield, H&S insurance). This is not necessary. You can discontinue your H&S plan.

If you do not have the company plan, you have the following options:

* take an Incomeshield rider to cover the deductible and co-insurance (which is not covered under the Incomeshield plan)

* pay the deductible and co-insurance out of your Medisave account (ie you do not need to insure these items).

Some advisers sell the H&S plan to cover the deductible and co-insurance, before the rider was available. The rider is a better plan to cover these items, as it avoids the duplication (and higher cost) of the H&S plan.

My personal preference is to take Incomeshield only to cover the big bills, and to pay the deductible and co-insurance out of Medisave savings.