I advise consumers to avoid buying the rider to cover the Deductible and Co-insurance under an integrated shield plan. Here is my reason.
The average amount that you have to co-pay is $3,000. Let us assume that the chance of getting hospitalised for your age is 1 in 10 years. If you buy the rider, you probably have to pay $450 a year.
Over 10 years, you would have paid $4,500. You may have no claim during this period, so all the premium that you have paid goes to pay somebody's else claim.
You may have one claim during this period, which is most likely. You are still out of pocket by $1,500 having paid $4,500 to get back a compensation of $3,000.
You may have two claims during this period. So you claim back $6,000 and paid $4,500. You make a gain of $1,500. But the chance of this occurrence is 1 in 10.
You have a 90% chance of losing and a 10% chance of winning when you buy the rider.
If the cost of the rider is less than $450, it means that you are at a younger age and the chance of being hospitalised is even lower.
Insurance works best when you have to cover big odds, such as the chance of dying in an accident in a year. This chance is 3 in 10,000. So you pay $45 to insure for $100,000. That makes sense.
Buying insurance to cover the Deductible and Co-insurance will make you lose and give a good profit for the insurance company.
The insurance agent encourages you to buy the rider because they can earn a commission of 10% or 15% on the premium that you have to pay each year.