A recent ST article stated that More than half who buy Integrated Shield Plans (ISP) covering private healthcare opt for subsidised wards when hospitalised. I am unsurprised as I have also started to see this trend with claims in the recent years.
So the big question is – Is it really necessary to have an Integrated Shield Plan Covering Private Hospitals in Singapore?
Here are the pros and cons, so you can make an informed decision.
Waiting times
If you’re looking for the quickest possible treatment, then a private hospital is the way to go. Waiting times for non-emergency procedures are typically much shorter in private hospitals than in public hospitals. Also, in times of need (especially in the diagnostic stage), waiting can be daunting.
Advisor’s Take: I highly recommend a private coverage for young kids because there are more instances of non-emergency treatment required (think HFMD). Based on experience, private hospitals are more willing to admit young kids even at earlier onset of symptoms.
Doctors
Private hospitals are able to attract top talent with higher salaries and better working conditions. So there is a perception that you can find better doctors in the private space. However, whether this still holds true is a tough question to answer.
Facilities
Private hospitals typically have newer and more luxurious facilities than public hospitals. This includes private rooms, better food, and more amenities. The quieter/calmer environment can also make a positive difference during times of sickness – not just for the sick, but also for caregivers.
Bills
All the pros of a Private Hospital translate to a higher bill size than public hospital bills. When co-payment is involved or when long term medication is needed, we would need to think twice about the choice of treatment.
Advisor’s Take: Co-payment is not too much of a concern if you also have employee benefits covering for private hospital. The insurers should be able to work hand in hand to cover the bill (including copayment) in full.
Premiums
And obviously, for insurers to cover the larger bills, they would have to charge a (much) higher premium- which, ultimately is the Con in this perennial debate between private and public shield cover.
In summary, whether or not it’s worth getting an IP covering private hospitals in Singapore depends on your individual circumstances & preferences. And it’s just like all other choices we make in life: Private vs Public Housing. Affordable Japanese cars vs the pricier continental cars. Mass public transportation vs Taking a taxi. Eating at the Hawker vs Fine dining.
My personal take is that having an integrated shield plan is a necessity, but having a shield that also covers Private Hospitals is a choice (a nice one if you can afford it).
If you have the money and you’re willing to pay for the convenience and peace of mind, then a private hospital may be the right choice for you.
But if you’re on a tight budget or you’re happy with the care that you’re getting at a public hospital, then you may be able to get by without an ISP covering private hospitals.
Personally, I have a private ISP coverage. Simply because healthcare is something that I am willing to pay for (though hopefully never to claim from). Of course, I do keep my options open to downgrade it in my elderly years should the need arises.
A last point to add is that we should also be more practical when choosing coverage. if we already have a preferred hospital that we would likely go to, then we should take that into consideration too.
If you have any questions regarding your ISP, feel free to drop me a WhatsApp/ fill up the contact form here. Cheers.
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 independent 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.
I believe that “Worrying is not planning and Hope is not a good strategy”, and that the purpose of Financial Planning is to allow us to lead fulfilling lives while being financially wise.
As such, my role as a Certified Financial Planner CFP® is to help my clients build those sound financial strategies and design action plans that put them on track to their financial goals so that they can live the best possible life for themselves.
This is done via a systematic approach of ongoing cash flow management & asset allocation, as well as investment management, estate planning, and tax optimization.
I also ascertain that I stay up-to-date with industry trends and policies changes to ensure that my clients benefit from the latest strategies and opportunities available.
Over the years, I have developed a specialty in comprehensive financial planning for busy legal professionals & educators. I also particularly like assisting working mothers & young families to achieve their long term financial goals. Working with the largest independent financial advisory (IFA) firm in Singapore also frees me from product pressures and allows me to only recommend solutions that suit my client’s needs. And client’s interest, is always the core of my FA business.
Being a wealth planner is my dream career and this is what I hope to do for a long time.
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