Lower Your Insurance Premium - How?

How Do I Make My Hospital Insurance More Affordable?

One client asked me whether she should surrender her Integrated Shield Plan (IS) as she finds it increasingly costly. That is the current state of medical insurance here in Singapore.

I advised her not to give up her IS plan so easily as it can shield her against financial distress when it comes to hefty hospital bills. Singapore has one of the highest medical inflation in the region. In any case, a decent portion of the annual premium can be paid using her CPF Medisave.

What she MIGHT consider giving up is the IS rider plan, of which the premium is fully payable in cash. My rationale to her is:

1. This IS rider plan is typically designed to cover policy deductible, which may range from $2,000 to $3,500.

2. IS base policy deductible is on annual and not on per claim basis. In other words, this deductible is not applicable for subsequent claims that policy year if it is already paid for. Of course, co-pay applies to all claims.

3. The IS rider plan annual premium may be quite substantial when policyholder reaches a senior age group.

4. There will come a time when the IS rider plan annual premium is higher than the policy deductible it is suppose to cover!

5. My client already has personal accident and hospital cash plans. They have benefits that can defray the IS policy deductible and co-pay to a certain extent wherever applicable.

There is no free lunch in this world. The more we try not to bear a portion of our hospital bills, the more insurance premiums we chalk up in the long run. Dollars and cents become a greater concern for breadwinners who have to finance the family’s insurance protection.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Norman Ngai

I spent 16 years of my career in multinational life and general insurers in both underwriting and claim management roles. This contributed to my deep and diverse industry experience, which will benefit my individual and corporate clients.

I am a proud representative consultant of Financial Alliance now, one of the largest financial advisory firms in Singapore.

Financial Alliance partners over 50 life/general insurers, 5 investment platforms, 71 asset management companies and 5 estate planning partners.

Be assured that you are in good hands, if you wish to embark on your risk management and financial planning journey with me.

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