Sunday, November 28, 2010

Private Shield - is it worth a buy?

Let's talk about the single most important thing in one's personal finance, Hospitalisation and Surgical Insurance.  Read this and this and that on such H&S insurance matters.

Having read the articles above, i somehow had this impression that Medishield gives more value to those Private Shield plans. (Note, i use the word value, not cheap and i use the word impression , so it is just my opinion. Just for the record, I am an absolute newbie in insurance,
Prices
 Comments
I have used Enhanced Income Shield (BASIC) insurance as comparison as it's the most " apple to apple" .
Medishield covers grade B2/C wards. Incomeshield covers B2/C wards AND B1 wards.
85 years above is not covered under Medishield. Honestly, i have damn good genes...and i think i will live till above that age, barring any suay events like slashing or stabbing incidents by the 369 gang or ang soon tong or 18 sio li ho or Kuti PiSai Motorcycle gang linked to Columbian Drug lords .(Eh Ah Beng reading this ...relak la bro..just joking ). At most, Incomeshield is only 2.87 times more than the premium of medishield  and it is covered by Medisave, money one can't touch.

Coverage ( Very General and Brief)
 Comments
In term of coverage, Incomeshield (Basic) trounces Medishield big time.The above table is just a portion of the difference in coverages, if you have so much time to spare for analysing, look here for Medishield and here for NTUC incomeshield.

Honestly, i think a limit of $50,000 for a policy year for Medishield is kinda low. So, do you think paying 2.87 times ( at most) for the 'as charged' ( means unlimited in a sense) feature and the coverage beyond 85 years of age is worth it?

5 comments:

  1. Hi,
    Definitely very worth.
    If you live over the age of 65(not85), you don't want to burden anyone in this 21st century.
    Now a days, a family is usually make up of 3 or 4 persons.
    Besides, your children most probably are struggling to support their own family.

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  2. Agree .with properties so ex these days....we are bonded to work!

    SGDividends

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  3. Hi bro,

    I signed up with the best medishield care, not because I'm atas and staying with the best ward, but rather if you don't stay on the best ward, you can get cash back during your hospital stays. I've also heard that if you wish to choose your doc in public hospitals, you'll be charged in a higher ward anyway, so i'm just covering my downside. I think when I'm younger and working, the few hundred per yr is easily affordable.

    The higher plan will cost a lot more after a certain age banding, hence I would switch down to a lower band, or simply switch back to medishield. If you buy a lower plan but want to switch up, it's much higher as you might have underlying conditions when older. But if you wish to switch down to a lower plan, there shouldn't be any problems. Again, I'm just covering my downside since I've no idea what will happen.

    That's my plan lah, anyway.

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  4. Hi LP,

    Wah LP, you certainly try to squeeze the value by switching..haha

    Actually, today i just visited the MOH website to have a feel of the hospitalization bills out of curiosity.Hmm...i used to have an impression that hospitalisation bills are damn ex based on hearsay and rumours from friends but seeing the data..its not as drastic as i imagined...

    Quite possibly, Medisave could be most value as it seems the amount of coverage matches just about nice or exceeds a bit the average hospital bills based on MOH website statistics.

    I looked up the median age of the lifespan of singaporeans and it is about around 81-84 years old (unofficial sources)

    A enhanced incomeshield's deductible is about $500 more than medishield, so one could potentially pay more in hospitalisation bills if one is covered under incomeshield if the bills are not much ,say less than 10,000

    No indepth calculation or analysis or research done...just browsing....

    hmmmm
    SGDividends

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  5. Hi sgd,

    Well, I think the point of having hospitalization plans is to insure yourself in the event of huge medical bills in the event of being hospitalized. If the amt is small, I can easily pay with it from my own pockets.

    That being said, medisave is the cheapest insurance ever. No doubts about that. The bad thing is the limitation that you can pay from each category. Having some hospitalization plan is better than no plan, but having the right plan is better than having some plans :)

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