Monday, August 27, 2007

Some tips on medical Insurance

1. The Shield plans requires me to pay the deductible and to pay a share of the balance of the hospital bill. Some insurers offer a rider to cover these items, but it has to be paid in cash. Should I buy the rider?

For most people who are in good health, there is no need to take the rider. If you have to be hospitalised, you can pay these items from your Medisave account. This amount is not large, and can be self-insured.

If you insure these items, you have to pay a premium that covers the expected claim, expenses and a profit margin.

2. My employer now provides medical insurance to me. Should I buy a Shield plan to provide continuity of cover after I retire from work?

Many people take a Shield plan to provide continuity of cover. They pay a premium under the Shield plan, but they are not likely to make a claim under this play, as the hospital bill is likely to be paid by the employer.

It is advisable to take the Medisheild plan for this continuity of cover, as it has th elowest cost. There is no need to pay a high premium for a plan that you are not likely to use when you are covered by the employer.

If you do not take a Shield plan now, you can still apply for a Shield plan later when you retire from work. At that time, you will be accepted, if you are in good health. If not, you can still buy insurance by paying a higher premium.

Some people are willing to save on the premium for the Shield plan and apply for insurance only when it is needed. They can save on the premium in the meantime.
Posted by at

3 comments:

Anonymous said...

Mr. Tan,

Regarding your comment belo;"
For most people who are in good health, there is no need to take the rider. If you have to be hospitalised, you can pay these items from your Medisave account. This amount is not large, and can be self-insured."

May I ask is it true that application is subject to underwriting if he wants to buy the rider after any illness stikes in the future?

August 27, 2007 4:10 PM
Thomas Phua's Blog said...

1.When your sixth sense tells you that your health is failing, take up a Plus Rider, but then, who knows when such will happen?

One risk anti-selection by the insurer as some condition may not be accepted even if one wish to insure under the rider.Not even with higher premium.

Deductible may seem to be small, but the 10% co-insurance can be high if the bill is high, so it may not be correct to ignore insuring the Deductible and Co-insurance until too late.

2. Without the Rider, Shield Plan can compliment employer benefit as most employer benefit may not cover 100%.

Shield Plan is always a backup. What happen if one is so sick as to be medically boarded out, then it will be too late to consider a Shield Plan as insurer may not take the application due to the illness.

Will our sixth sense be able to tell us when we need such Shield Plan and coverage for Deductible Rider is needed?

Saving in cost in this instance may not be wise for long term need, if we missed what is coming.

- Thomas Phua

August 27, 2007 9:00 PM
Khiat Han Hwee Adrian said...

I agree with Mr Tan on the 2 points with regards to cost savings.

But to me, its a small cost compared to a possible large claims. Deductible of $2k to $3k and a 10% Co-insurance. I rather spend $100 to save a possible several thousands hospital expense.

NTUC income currently holds the lowest cost Rider plan but I foresee that the premium will not hold long after the "As Charged" benefits comes it, which may thin out the profit margin.

August 30, 2007 1:06 AM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive