It is wise that one buys medical insurance for hospitalisation and critical illnesses for a peace of mind. Hospital bill can set a person back a fair bit if the person is not covered by insurance. The insurance premium per annum is small when we consider the amount that the insurance can cover you in case of catastrophic illness. Furthermore, the premium payable under the Medisave-Approved Integrated Plan can be deducted from your medisave account.
The benefits provided are dependent on the various plans offered by the insurance company. For higher medical expenses coverage, you will need to pay a higher premium. If you choose to be treated by private hospital, the premium payable will be higher than the Government Restructured Hospital. If you choose Class A ward, then the premium will be more expensive than the Class B1 ward.
Before any claim can be paid out by the insurance company, you will have to first pay the annual deductible which ranges from $1,000 to $4,500. The insurance company then pays for the balance of the hospital bill after the deductible. The maximum that the insurance will pay will be limited to the annual policy year limit which may range from $100,000 to $300,000 depending on the insurance company.
There are a few insurance companies providing the Medisave-Approved Integrated Plan. The benefits and the premium payable are different. Study these carefully and compare them across insurance companies. Be aware that some insurance company has amount limit even at each in-patient benefit level, such as Daily Room and Board, ICU, surgery etc. This means that besides paying the deductible (as explained above), you will need to pay also the amount exceeding each in-patient benefit. This can happen because the premium of this insurance offered by the insurance company is lower than the one offered by another insurance company. The latter insurance company pays the full amount as charged by the hospital.
So it pays to “shop” around and study carefully the medical benefits offered by each insurance company and pick the one that best suit your needs.
Written on 11/20/2006 5:01 PM
Copyright © 2006, the author known as LKT in Singapore.
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.