Tan Kin Lian's Blog: Double coverage for medical insurance

Thursday, November 01, 2007

Double coverage for medical insurance

Dear Mr Tan,

I am insured for group medical by my company. An insurance agent advised me to buy a Shield plan from his company so that I can continue to get coverage after I leave this employer. I read your previous posting that this is double coverage. What should I do?

Which company offer the best Shield plan? Is it NTUC, AIA or Avivia? What is your advice?

REPLY

If you buy a Shield plan on top of the medical insurance provided by your employer, you are paying the full premium for the Shield plan for partial or no coverage, as most of the medical cost can be met from the employer's plan.

Here are two better options for the employee:

1) Ask your employer to buy a Shield plan. This allows allows you to continue the plan on your own when you leave your employer, i.e. the plan is portable. As the Shield plan has a deductible, you can ask the employer to buy the rider to cover it. If the total cost to the employer is higher than the group plan, you can volunteer to pay a portion of the total cost.

2) Ask your employer to stop the group plan and contibute the premium to your Medisave account. You can pay for your own Shield plan using the Medisave.

Both options avoid the wastage of double coverage and reduces the cost to the employer and employee.

I am not familiar with the coverage and premium charged on the Shield plans by the various insurance companies. I am not able to comment on the plan that is best for you.

6 comments:

hongjun said...: I cannot remember the details. But my independent adviser recommended NTUC's and Aviva's. GE is also not bad but I'm not sure if they have a rider. I cannot remember the reason why.

hongjun; November 01, 2007 10:26 PM
Khiat Han Hwee Adrian said...: This comment has been removed by a blog administrator.; November 02, 2007 10:43 AM
Khiat Han Hwee Adrian said...: This comment has been removed by a blog administrator.; November 02, 2007 12:13 PM
Khiat Han Hwee Adrian said...: The GE plan has its unique points such as Pregnancy complications, Congenital Abnormalies, etc

They have a rider call "TotalShield" It covers more than the deductible and co-insurance but it does not come cheap. It is available to anyone regardless which Shield plan ones has. However the premium is lower for Supremehealth Policyholders.

In my opinion, its okay to get such plan for extra assurance but its not an essential. The premium is not that low as well.; November 03, 2007 1:54 AM
Anonymous said...: From what I understand from my advisor, he mentioned that after depleting the employer's medical caps, the shield plans could be in use.

The employer's plans can be used to cover the $3000 deductible first and the amount after $3000 may be covered under the employer's plan or the shield plan.; November 03, 2007 9:28 PM
Thomas Phua's Blog said...: Ignorance of need is a big problem.

Last Sunday Times, reported a man who forget to take up medical insurance for his daughter and his medisave got wiped out.

Some time one procastinate, and weigh too much until too late.

I like Nike's slogan, "Do it !"

- Thomas Phua; November 06, 2007 10:09 AM