Understanding MediShield Life
What is MediShield Life?
MediShield Life is a basic health insurance scheme that protects all Singapore Citizens and Permanent Residents (PRs). The all-inclusive compulsory insurance by the Government is designed to provide coverage for Class B2 or C wards in public hospitals. MediShield Life provides lifetime coverage for all – from birth till death – and even covers those with pre-existing health conditions. There is no need to apply for MediShield Life.
Clearly, MediShield Life has improved benefits that will ensure Singapore Citizens and PRs pay less for their hospital bills. However with better benefits, premiums are also higher. MediShield Life premiums can be fully paid using your Medisave, one of the accounts in your Central Provident Fund (CPF) which is meant to pay for hospitalisation bills.
Those with “serious pre-existing conditions” will only need to pay 30% Additional premiums for 10 years to reflect their higher risk. Examples of such conditions include cancer, heart disease and schizophrenia.
Is MediShield Life enough?
Now that MediShield Life provides enhanced healthcare coverage for Singapore Citizens and PRs, is there still a need to purchase a private Integrated Shield Plan (IP)?
MediShield Life is meant as a form of basic coverage in the event of a hospitalisation. While MediShield Life means you pay less for your hospital bill, the fact remains that an out-of-pocket cash component still exists.
In considering whether or not to get a private IP, first ask yourself what type of ward you would want to stay in should you be admitted to a hospital.MediShield Life can be used both in public and private hospitals.
However as the coverage is designed for Class B2 or C wards in public hospitals, the higher cost of hospitalisation in Class B1 ward and above would have to be borne by you. It is worth noting that you can choose your preferred doctor only if you are in a private hospital or ward class A and B1 in a public hospital.
| Ward Classes | Room Features | |
| Private hospital | One, two or four beds; Air-conditioning; TV | |
| Public hospital | A | Single bed; Air-conditioning; TV |
| B1 | Four beds; Air-conditioning; TV | |
| B2 | Six beds; No air-conditioning; No TV | |
| C | Eight beds; No air-conditioning; No TV | |
Second, will you be able to afford the premiums for a private IP? On top of paying the premiums for MediShield Life, you will have to pay premiums for the additional private insurance coverage. Premiums will also increase as you get older. If you are close to retiring, will you still be able to pay for the premiums when you stop work?
If you want more than basic hospitalisation coverage but feel that the private IP is beyond your budget, you may want to consider Standard IP. Recently announced by the Government, the Standard IP is a private IP plan which gives you the option of enhanced hospitalisation coverage beyond MediShield Life, specifically for Class B1 ward in public hospitals. This will allow you to choose your own doctor and be hospitalised in an air-conditioned ward.
If you are looking to supplement your basic health policy, explore Income's IncomeShield plans. Or, if you're feeling a little lost, have a chat with our financial planners via by connecting with us!
This article is meant purely for informational purposes and does not constitute an offer, recommendation, solicitation or advise to buy or sell any product(s). It should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income Insurance products mentioned are specified in their respective policy contracts. Please seek independent financial advice before making any decision.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Income Insurance or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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