Complete Guide To Health Insurance That Singaporeans Ought To Know

insurance requirement
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September 20, 2018
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Health Insurance

In our previous guide, we covered all the types of life insurance that Singaporeans ought to understand. In this article, we continue to focus on understanding the essence insurance. In particular, we will focus on three types of health insurance that Singaporeans must know and the purpose each of them serves.

Complete Guide To Health Insurance That Singaporeans Ought To Know

  1. Integrated Shield Plan

Integrated Shield Plan is a type of private health insurance that supplements MediShield Life to cover you for your hospitalisation bills. If you are a Singaporean, you will have your basic hospitalisation protection covered by MediShield Life. However, the MediShield Life only covers hospitalisation bills up to Class B2 in Singapore’s public hospitals. Integrated Shield Plan is meant to give Singaporeans an option for additional medical coverage on top of the basic MediShield Life to make treatment at Singapore hospitals’ Class B1 (and above) more affordable for Singaporeans.

Why Should You Get Integrated Shield Plan?

Since we are already covered by MediShield Life for basic protection against hospitalisation bills, why bother getting additional hospitalisation insurance with an Integrated Shield Plan? Well, the fact is that MediShield Life only provides the basic coverage that will meet the basic health care costs for hospitalisation and treatment at Class B2 (or below) wards.

If you choose to get treated at Class B1 (or above) wards, the additional costs will need to be borne by you. That is where an Integrated Shield Plan comes in handy. It insures you against those additional costs. You only need to make a co-payment of 5% for the treatment that you are receiving (due to the government’s latest move to reduce overconsumption of medical treatments and services).

What To Look Out For In An Integrated Shield Plan

There are few factors you need to consider and look out for when purchasing an Integrated Shield Plan. The first factor to consider is the number of days you can claim from pre-hospitalisation and post-hospitalisation. This is because major illnesses and accidents typically lead to a period of recovery time post-hospitalisation that will also come at a cost.

Integrated Shield Plan Pre-hospitalisation Cover Post-hospitalisation Cover
AXA Shield Plan B 180 days 365 days
Prudential PruShield Plus 180 days 365 days
Great Eastern Supreme Health A Plus 120 days 180 days
AIA HealthShield Gold Max B 100 days 100 days
NTUC Income Enhanced IncomeShield Advantage 90 days 90 days
Aviva MyShield Plan 2 90 days 90 days


The second factor is the annual coverage limit. Each Integrated Shield Plan comes with its own coverage limit that you can claim against. If you exceed the limit, you will need to pay from your own pocket. The third factor is to consider the type of plan you need, whether it is Class B2, A or private hospital plan. There is no point paying for a private hospital plan when you will only seek treatment at public hospitals. You will end up overpaying on the premiums for your Integrated Shield Plan.

Haven’t gotten your Integrated Shield Plan to protect you against health issues? Don’t delay it anymore. Get yourself protected with the right health insurance on Moneyline today!

  1. Critical Illness Plan

Critical Illness plan is a type of insurance that offers a lump sum payout for the policyholder in the event that you are diagnosed with critical illness. In Singapore, the Life Insurance Association (LIA) defines an industry wide list of critical illnesses. Right now, there are 37 types of illnesses that are listed in the critical illness list, from major cancers to heart attack to stroke and kidney failure. Each critical illness has a medical definition to determine whether you are eligible for payout from your insurer. (Read the list of critical illness and its definition here.)

Why Should You Get Critical Illness Plan?

The cost of treating critical illness can be expensive, especially if you consider the after-treatment care that needs to be rendered. Thus, a critical illness plan is meant to offer financial protection for you in case you are diagnosed with a critical illness. Without a critical illness plan in place, it can jeopardize your family’s finances to pay for the cost of treating and caring for you post-recovery. It can pose both financial and emotional burden on you and your loved ones, which isn’t helpful for your condition.

What To Look Out For In A Critical Illness Plan?

A key aspect of a good critical illness plan is the additional and/or accelerated benefit rider.

If your critical illness plan comes with an additional benefit rider, it means that you get an additional payout benefit on top of your death benefit. You will receive a lump sum upon making a critical illness claim based on the additional benefit amount. In the event of death, your family will still be able to claim the death benefit from your critical illness plan.

An accelerated benefit allows you to receive payout at an earlier point in time after you are diagnosed with a critical illness. This is to provide you with some cash flow to cope with the impending cost of treatment and post-treatment care. However, an accelerated benefit is deducted from your death benefit, unlike an additional benefit rider. The total benefit you can claim from your critical illness plan will be pegged to the total death cover you decided on day 1 of your critical illness plan.

Falling sick can be scary but falling sick without a critical illness plan can make it even more scary. You don’t deserve to live in fear. Getting a critical illness plan can be as simple as a few clicks away!

  1. Long-Term Care Insurance Plan

Long-term care insurance is a type of insurance that covers for your needs in the event of severe disability. Severe disability refers to those who are unable to perform 2-3 activities of daily living (ADL) on their own. These ADL include bathing, dressing, feeding, toileting, moving and transferring. The moment you are unable to complete 2-3 ADL, long-term care insurance will pay you a fixed amount of benefit each month. This is to help you cover the expenses of long-term nursing treatment, especially during old age.

Why Should You Get Long-Term Care Insurance Plan?

Singapore is suffering from a long-term problem of declining birth rate. As a result, 25% of the population will be above age 65 by 2030. As the number of elderly increases, the odds of ill health is also increasing. According to MOH, 50% of Singaporeans above age 65 face risks of developing a long-term disability. The length of duration of poor health condition is also increasing for the elderly. During his National Day Rally, Prime Minister Lee even said that Singaporeans can expect to experience an average of eight years of ill health in old age. Overall, long-term care is fast becoming an issue that every Singaporean needs to grapple with. It has now become a matter of ‘when’.

To make things worse, the cost of care for long-term disability isn’t cheap. Savings can be wiped out quickly if you are not financially prepared. The estimated cost of a trained home caregiver will cost about $750 per month. A nursing home can charge up to $4,000 a month and specialised care in a hospital can cost at least $7,000 per month.

What To Look Out For In A Long-Term Care Insurance Plan?

Although Singaporeans can look forward to having CareShield Life to provide basic long-term care insurance coverage, the reality is that it is still not enough. The payout for CareShield Life starts at $600 a month, which is still not enough to cover the cost of a trained home caregiver. Thus, you need to supplement CareShield Life with additional private long-term care insurance plan so that you ensure adequate payout to cover your cost of living during ill health.

Long-term care insurance is fast becoming a must-have for every Singaporean. Since it is a must-have, why not get it early and get that peace of mind early? Let our advisors help you to make the right financial plans for your long-term care insurance needs. Schedule an appointment to get a full consultation today.


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