Generally, there are three sources of funds that you can tap on for your healthcare cost:
- Your personal savings
- Your Medisave savings
- Your health insurance include your MediShield or Integrated Shield plan purchased with your CPF Medisave saving and any other personal health insurance plan that you have.
As part of the employment benefits package, some employers also buy (group) health insurance coverage for their employees. Find out whether you do have such a benefit, and if so, what you are covered for. Remember that such a plan may not cover you if you change employer or retire so you may wish to consider having a personal plan as well.
In addition, if you are in the low income group, you can apply for assistance under the Medifund scheme. Medifund is an endowment fund set up by the Government to help needy Singaporeans who are unable to pay for their medical expenses. Medifund acts as a safety net for those who cannot afford the subsidized bill charges, despite Medisave and MediShield coverage.
What are the different types of Health Insurance?
Type of Health Insurance PlanWhat the Plan coversKey points to note Medical expense insurance
(or hospital & surgical insurance)
Pays medical expenses incurred as a result of an accident or illness.
Generally pays for:
- Inpatient medical treatment/ surgery
- Some outpatient charges for day surgery
- Consultations with specialists before and after hospital stay
- X rays
- Laboratory tests
- "Major" medical expense insurance would generally also pay for expenses for longer hospital stays due to major illness (e.g. heart bypass or organ transplant)
The amount that you are reimbursed will only cover the actual amount you have had to pay, less any deductibles, regardless of the number of policies you have. So, taking up extra medical expense policies does not necessarily provide extra benefits.
Comes with deductibles and/or co-insurance features which set out the minimum amount you need to pay before you can make a claim on your policy (ies).
There are limits to the amount you can claim under each policy. There may be limits for all claims as well as limits for each illness, disability, year or lifetime. You can combine the limits of two or more policies to get higher benefits.
May exclude coverage for expenses incurred for treatment for certain illnesses such as pre-existing conditions or treatment that is not for medical reasons.
May have a waiting period during which medical expenses cannot be claimed from the policy unless they relate to accidental injuries.
Premium rates may not be guaranteed
MediShield and Integrated Shield PlansMediShield is the national basic ‘major medical expense' insurance scheme that helps its policyholders meet large hospitalization costs at the Class B2/C level.
Some insurance companies offer Integrated Shield Plans that provide higher medical coverage than MediShield. These are suitable if you plan to use Class B1, Class A wards or private hospitals. These plans are combined with basic MediShield and policyholders pay one premium for coverage under both the private plan and basic MediShield. MediShield provides the basic coverage. An Integrated Shield Plan may not always pay out more than the MediShield due to higher deductibles.
Eligible Singaporean Citizens and Permanent Residents are covered unless they opt-out. You can check with the CPF Board if you and your family are covered under MediShield and/or how to apply for MediShield coverage.
MediShield premiums can be paid by Medisave. If you or your family members have Integrated Shield Plans, you can also use Medisave to pay for your premiums. However, you cannot use more than the withdrawal limit set by CPF to pay for the premiums. As you get older, there is a possibility that you will have to pay the premium with cash.
MediShield and Integrated Shield Plans have co-insurance and deductible features.
You can use your Medisave or your immediate family members' Medisave to pay for the deductible and co-insurance
Premium rates are not guaranteed and will increase, as you get older.
May have a waiting period, which means claims are not payable if incurred within a stipulated time period after policy inception.
Hospital cash insurance (or Hospital income insurance)Pays a fixed amount of benefit for each day you are in hospital for medical treatment or surgery, regardless of actual expenses incurred during your stay.Total insurance proceeds may be more or less than your actual expenses.
May have a deferred period. This refers to the period of time after commencement of disability/ sickness before the benefits will be paid. So benefits may only be paid after you have been in hospital for more than set number of days.
Benefits may also be paid only for a limited number of days each year or the life of the policy. In the latter case, the policy will end once the lifetime limit has been reached.
Critical illness (or dread disease or major illness) insurancePays a lump sum either when you are first diagnosed with a critical illness or after having the first type of surgery that is covered by the policy.
The lump sum does not depend on you going into hospital or on your actual medical expenses
Check your policy for the list of critical illnesses that are covered under your policy.
Benefits are only paid if the critical illness or surgery exactly meets the definition that is stated in the policy.
Usually has a waiting period from the date the policy starts for certain illnesses or types of surgery. If any critical illness or surgery for which the policy specifies is diagnosed or carried out during the waiting period, no benefits will be paid.
Disability income insurancePays a fixed amount each month to replace the income you would lose if you are not able to work as a result of an accident or illness.Usually pays no more than 80% of your average monthly salary. The aim is to ease the financial burden and is not intended to completely replace the income you earned before the accident or illness.
May have a deferred period during which benefits will not be paid (see above for explanation).
Benefits will only be paid if you are continuously disabled for longer than the deferred period.
The monthly income benefit will usually be paid for up to five or ten years, or until you are 60 or 65.
Long term care insurancePays a fixed amount of benefit each month towards expenses for long-term nursing treatment.Benefits are paid when you cannot perform some ‘activities of daily living'. E.g. bathing, dressing, feeding, going to the toilet and moving around. The definition of ‘activities of daily living' varies from one policy to another.
The benefits will stop once the number of activities you cannot perform falls below the minimum stipulated in your policy.
Some policies pay benefits for up to a limited number of years. Some policies pay benefits for life, as long as you meet the conditions for making a claim.
ElderShieldElderShield is a national basic long term care insurance scheme.
Provides basic financial protection to those who need long term care. It provides a monthly cash payout for a limited period to help pay expenses for the care of severely disabled persons.
All Singaporeans and Permanent Residents who are CPF members are automatically covered under ElderShield when they reach age 40. , unless they opt out.
ElderShield premiums can be paid by Medisave.
A CPF member can also use his Medisave to pay ElderShield premiums for parents, spouse, grandparents and children
http://imoneysg.com/insurance/health-insurance/making-sense-of-health-insurance.html
- Your personal savings
- Your Medisave savings
- Your health insurance include your MediShield or Integrated Shield plan purchased with your CPF Medisave saving and any other personal health insurance plan that you have.
As part of the employment benefits package, some employers also buy (group) health insurance coverage for their employees. Find out whether you do have such a benefit, and if so, what you are covered for. Remember that such a plan may not cover you if you change employer or retire so you may wish to consider having a personal plan as well.
In addition, if you are in the low income group, you can apply for assistance under the Medifund scheme. Medifund is an endowment fund set up by the Government to help needy Singaporeans who are unable to pay for their medical expenses. Medifund acts as a safety net for those who cannot afford the subsidized bill charges, despite Medisave and MediShield coverage.
What are the different types of Health Insurance?
Type of Health Insurance PlanWhat the Plan coversKey points to note Medical expense insurance
(or hospital & surgical insurance)
Pays medical expenses incurred as a result of an accident or illness.
Generally pays for:
- Inpatient medical treatment/ surgery
- Some outpatient charges for day surgery
- Consultations with specialists before and after hospital stay
- X rays
- Laboratory tests
- "Major" medical expense insurance would generally also pay for expenses for longer hospital stays due to major illness (e.g. heart bypass or organ transplant)
The amount that you are reimbursed will only cover the actual amount you have had to pay, less any deductibles, regardless of the number of policies you have. So, taking up extra medical expense policies does not necessarily provide extra benefits.
Comes with deductibles and/or co-insurance features which set out the minimum amount you need to pay before you can make a claim on your policy (ies).
There are limits to the amount you can claim under each policy. There may be limits for all claims as well as limits for each illness, disability, year or lifetime. You can combine the limits of two or more policies to get higher benefits.
May exclude coverage for expenses incurred for treatment for certain illnesses such as pre-existing conditions or treatment that is not for medical reasons.
May have a waiting period during which medical expenses cannot be claimed from the policy unless they relate to accidental injuries.
Premium rates may not be guaranteed
MediShield and Integrated Shield PlansMediShield is the national basic ‘major medical expense' insurance scheme that helps its policyholders meet large hospitalization costs at the Class B2/C level.
Some insurance companies offer Integrated Shield Plans that provide higher medical coverage than MediShield. These are suitable if you plan to use Class B1, Class A wards or private hospitals. These plans are combined with basic MediShield and policyholders pay one premium for coverage under both the private plan and basic MediShield. MediShield provides the basic coverage. An Integrated Shield Plan may not always pay out more than the MediShield due to higher deductibles.
Eligible Singaporean Citizens and Permanent Residents are covered unless they opt-out. You can check with the CPF Board if you and your family are covered under MediShield and/or how to apply for MediShield coverage.
MediShield premiums can be paid by Medisave. If you or your family members have Integrated Shield Plans, you can also use Medisave to pay for your premiums. However, you cannot use more than the withdrawal limit set by CPF to pay for the premiums. As you get older, there is a possibility that you will have to pay the premium with cash.
MediShield and Integrated Shield Plans have co-insurance and deductible features.
You can use your Medisave or your immediate family members' Medisave to pay for the deductible and co-insurance
Premium rates are not guaranteed and will increase, as you get older.
May have a waiting period, which means claims are not payable if incurred within a stipulated time period after policy inception.
Hospital cash insurance (or Hospital income insurance)Pays a fixed amount of benefit for each day you are in hospital for medical treatment or surgery, regardless of actual expenses incurred during your stay.Total insurance proceeds may be more or less than your actual expenses.
May have a deferred period. This refers to the period of time after commencement of disability/ sickness before the benefits will be paid. So benefits may only be paid after you have been in hospital for more than set number of days.
Benefits may also be paid only for a limited number of days each year or the life of the policy. In the latter case, the policy will end once the lifetime limit has been reached.
Critical illness (or dread disease or major illness) insurancePays a lump sum either when you are first diagnosed with a critical illness or after having the first type of surgery that is covered by the policy.
The lump sum does not depend on you going into hospital or on your actual medical expenses
Check your policy for the list of critical illnesses that are covered under your policy.
Benefits are only paid if the critical illness or surgery exactly meets the definition that is stated in the policy.
Usually has a waiting period from the date the policy starts for certain illnesses or types of surgery. If any critical illness or surgery for which the policy specifies is diagnosed or carried out during the waiting period, no benefits will be paid.
Disability income insurancePays a fixed amount each month to replace the income you would lose if you are not able to work as a result of an accident or illness.Usually pays no more than 80% of your average monthly salary. The aim is to ease the financial burden and is not intended to completely replace the income you earned before the accident or illness.
May have a deferred period during which benefits will not be paid (see above for explanation).
Benefits will only be paid if you are continuously disabled for longer than the deferred period.
The monthly income benefit will usually be paid for up to five or ten years, or until you are 60 or 65.
Long term care insurancePays a fixed amount of benefit each month towards expenses for long-term nursing treatment.Benefits are paid when you cannot perform some ‘activities of daily living'. E.g. bathing, dressing, feeding, going to the toilet and moving around. The definition of ‘activities of daily living' varies from one policy to another.
The benefits will stop once the number of activities you cannot perform falls below the minimum stipulated in your policy.
Some policies pay benefits for up to a limited number of years. Some policies pay benefits for life, as long as you meet the conditions for making a claim.
ElderShieldElderShield is a national basic long term care insurance scheme.
Provides basic financial protection to those who need long term care. It provides a monthly cash payout for a limited period to help pay expenses for the care of severely disabled persons.
All Singaporeans and Permanent Residents who are CPF members are automatically covered under ElderShield when they reach age 40. , unless they opt out.
ElderShield premiums can be paid by Medisave.
A CPF member can also use his Medisave to pay ElderShield premiums for parents, spouse, grandparents and children
http://imoneysg.com/insurance/health-insurance/making-sense-of-health-insurance.html