Key Moments in Life When You Might Need an Integrated Shield Plan

There is a common misconception that having MediShield Life will suffice to cover all sorts of medical and hospitalisation bills in our lifetime. This myth is so widespread that most people reckon it is unnecessary to pick up additional Integrated Shield Plans. But is it true?

Let’s figure that out in this article.

What Is an Integrated Shield Plan (IP)?

MediShield Life is a basic health insurance plan for Singapore citizens and Permanent Residents that is administered by the Central Provident Fund (CPF) Board. It is meant to supplement medical treatment expenses and large hospital bills incurred in Class B2/C wards, even though there is a standardised claim limit of S$150,000 per year.

But if medical inflation continues to grow at 10.7% per year like in 2024, will this amount be enough if one is struck with an unexpected health problem? What if your medical expenses exceed the coverage provided by the Medishield Life plan?

If you want better coverage that lets you have thorough health protection and ensure you can afford rising medical expenses down the road, opting for an additional IP will be a safer bet. An IP is an optional health coverage provided by private insurance companies like Prudential. Such a plan complements your MediShield Life plan, allows you to pay your premiums with your MediSave¹ and even increases your coverage based on your preferences (if you prefer a better hospital ward or private hospitals).

It doesn’t end there. There is also an option to include IP Riders to receive enhanced medical benefits that are not included in the MediShield Life plan. This simply translates to a high level of protection and greatly reduces your out-of-pocket expenses when you encounter a medical emergency.

Related: The Real Financial Cost of Critical Illnesses in Singapore

Moments in Life When a MediShield Life Plan Isn’t Enough

Let’s be real. No matter how healthy you are now or how unlikely you think you’ll require medical attention, there is still a possibility to incur a large medical bill that your MediShield Life Plan may not cover.

Here are a few moments in life when you wished that you had opted for more than just the MediShield Life plan.

Medical Inflation

Reportedly, the cost of healthcare in Singapore increased by a whopping 10.3% in 2023, and is expected to increase a further 10.7% in 2024. If medical inflation continues to increase at a rate of 10% per year, a S$10,000 medical bill can easily amount to over S$25,900 in 10 years. Not only does this mean medical expenses are getting more expensive, but it also means your MediShield Life Plan can claim for a lot less as time passes.

Increased Life Expectancy

The current life expectancy in Singapore is at 83 years and it is expected to increase to 85.4 years in 2040. That’s great news, but that also means you need to provision for longer healthcare coverage. With the proportion of older adults with multiple chronic diseases on the rise, it remains questionable if the trusted MediShield Life Plan is enough to ride through old age.

Unexpected Medical Conditions

The MediShield Life Plan may cover the basic bills but when the treatments amount to a larger proportion, it can easily break the bank. This is where a good IP can be the saving grace. It helps patients to pay hefty medical bills and let them recover with peace of mind.

Recover in Better Wards

Some may assume that they can live with subsidised treatments in B2/C-type wards in a public hospital. But when it comes to the crunch, when they are unwell (worse if they are diagnosed with chronic illness) and tired, can they truly put up with basic care? To qualify for better treatments and wards, having a MediShield Plan alone may not be enough.

Related: How to Find the Best Health Insurance

Factors To Take Note of When Choosing an IP

If you’re ready to look for the best IP that suits your needs, here are six things you need to take note of:

1. Co-payment

Note that all IP riders require a co-payment of 5% from policyholders. This is to ensure both healthcare providers and policyholders are exercising prudence when making medical decisions and stop driving medical inflation up.

2. Ease of Claim

A good IP will also ensure that the claim itself is fast, seamless and easy. Some of the perks and services to facilitate your claiming processes might include:

3. Letter of Guarantee

Does the insurer provide a Letter of Guarantee (LOG) prior to hospitalisation? LOG is useful because some hospitals may reduce the upfront cash deposit amount that you have to make an admission.

4. Premium Increase After Claims

Different insurers may have different practices. To be precise, check with your IP insurer to confirm if the premium will increase (and by how many per cent) should you make a claim.

5. Discount for No Claim

Some insurers offer claims-based pricing, meaning that when policyholders do not make a claim, they’ll enjoy a discount on their IP Riders premiums.

6. Panel Doctors

Evaluate if the insurer has a good list of doctors and specialists under their panel. An incomprehensive list may mean that you have to consult non-panel specialists and end up with more inconvenience or have to pay more.

Related: How Much Insurance Coverage Do You Really Need And What Insurance Plans Should You Get?

Needless to say, integrated shield plans offer valuable coverage in times of health emergencies. If you are interested in learning more about integrated shield plans, reach out to one of our licensed advisors.

Read More:

• 24-Hour Clinic or Hospital A&E: A Guide to Costs & Care in Singapore
• Elevate Your Coverage Game with Hospital Cash Insurance Plans
• 5 Potential Medical Expenses Incurred in Your Child’s Early Years
• 5 Surprising Things Your Integrated Shield Plan Doesn’t Cover
• International Health Insurance — What Is It and Should You Get One?

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