Additional health insurance — how do you choose

In Singapore, all residents are covered by MediShield Life — it’s the basic plan for large hospital bills. But if you want to stay in A/B1 class wards or private hospitals, you may consider adding an Integrated Shield Plan (IP), which provides coverage for these higher class ward classes.

There are other types of additional health insurance as well, such as riders or Critical Illness Plans.

Picking your first additional health insurance plan can feel like choosing a phone plan - too many options, too much fine print, and everything sounds the same. But here’s the deal: the right plan can save you thousands when you really need it.

How do you make the right choice? What to look out for:

1. Coverage limits
   Know how much the plan will pay per year and per treatment. A higher limit means more cushion for big bills.
2. Panel vs. non-panel doctors
   Some plans cover more if you use their approved list of doctors (called a panel). Going off-panel with a specific doctor in mind? You might pay more.
3. Deductibles and co-insurance
   A deductible is what you must pay before insurance kicks in. In short:

   Deductible = You pay first

   Co-insurance is a percentage of the bill you still need to pay after the deductible has been met. In short:

   Co-insurance = You pay a small percentage of the rest.

   Example: Let’s say the total hospitalisation bill is $10,000. You have an Integrated Shield Plan (IP) with a deductible of $3,500 and a co-insurance rate of 10%

   Here’s how the costs break down:

   

4. Riders
   Riders are a further optional add-on to reduce your out-of-pocket expenses. Riders can help to reduce your co-payment to 5%, and there is an annual cap on the co-payment amount.
5. Affordability
   More coverage = higher premiums. Find your balance. Don’t stretch just to flex a private hospital plan. Evaluate your needs and be mindful of the long-term costs that increase significantly with age. You can use MediSave to cover IP premiums, but it has withdrawal limits. If your IP premium (excluding MediShield Life) exceeds these limits, you may need to pay a portion using cash. Riders must be fully paid in cash.