*Singapore Insurance Reviews
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Singapore Insurance Reviewer - Independent reviews of auto insurance, health insurance plans, etc in Singapore
At Singapore Insurance.Org, we aim to dispel the confusion about the types of insurance plans people in Singapore should own.
On top of ensuring that consumers are not at the mercy of their insurance agents, we also aim to ensure every family gets well protected, in the most cost effective manner.
(If you are looking for car insurance in Singapore, click to go to Auto Insurance Quotes now.)
Fact 1: Almost every Singaporean, S'pore Permanent Resident (PR) and every one living in Singapore knows the importance of having insurance.
However, not everyone realises that we need different kinds of insurance plans. And that brings us to...
Fact 2: Many Singaporeans buy insurance plans because of what their insurance agents told them.
Usually, the script goes like along the lines of the high savings or investment returns that are promised to them when their plans mature or when the policyholder reach retirement age.
This is dangerous because many times, they bought largely plans that have only SAVINGS and INVESTMENT values. Thus, many are terribly short of insurance policies that have tremendous PROTECTION benefits. Hence...
Fact 3: As of today, 6 out of 10 Singaporeans are still being under insured . Put it bluntly, insurance is mainly to protect one's most treasured belongings and loved ones. Our insurance agents have used it to protect their own incomes and pockets.
We really feel that the following poem should be kept in every insurance agent's wallet / purse, to remind themselves of the glorious task that they are carrying out on behalf of the higher powers:
Fact 4: By merely fine tuning your existing insurance portfolio, it is very easy to lower your annual insurance premiums while maintaining or even increasing your life insurance coverage. All without terminating any life insurance policy.
Insurance Policies Singaporeans Must Have
Thanks to our insurance agents, we now have too many endowment or savings plans, investment-linked plans and whole life insurance plans with bonuses.
Why? The above plans have relatively the highest rate of commissions.
On top of such plans which are necessary but excessive, Singaporeans will also need
i) Health Insurance
Medical costs is rapidly rising, and health insurance plans otherwise, known as shield plans will help to pay for all the related costs.
ii) Personal Accident Insurance
The truth, we are leaving in urban Singapore, Our tiny space and so many roads mean that for drivers and pedestrians alike, the risk of meeting with road or non-road accidents are much higher than other countries in Asia.
iii) Disability Income Insurance
This is one of the newer types of insurance that is of great protection value to Singaporeans. Unfortunately due to low commission rates, many financial consultants do not sell it.
Wondering which is the best shield plan in Singapore? Call us at 97218160, and let June / CK tell you more.
http://www.singaporeinsurance.org/sg-ins/Medishield%20Information%20(Catastrophic%20Medical%20Insurance).pdf
Medisave-approved Insurance Tags!
Medisave-approved Integrated Insurance Plans
Apart from the MediShield scheme, which the Central Provident Fund Board runs, you can also choose from amongst other Medisave-approved Integrated Shield Plans offered by private insurers.
Since 1 July 2005, each of these Medisave-approved plans have been integrated with basic MediShield to form a single integrated plan. These Integrated Shield Plans provide you with additional benefits and coverage when you opt for Class A and B1 wards in public hospitals, or private hospitalisation.
Policyholders on the Medisave-approved Integrated Shield plans retain the benefits and coverage of the basic MediShield tier, while enjoying enhanced coverage provided by their private insurers. Premiums are paid directly to the private insurers who will service all the policyholder’s needs. Similarly, private insurers will service all claims and sort out all back-end arrangements with CPF Board to include any payouts from MediShield.
Medisave can also be used to pay for premiums of these private Medisave-approved Integrated Shield plans. From 1 Nov 2013, the Medisave withdrawal limits for Integrated Shield plan are:
- $800 per policy, per year, for those aged 65 and below next birthday;
- $1,000 per policy, per year, for those aged 66 to 75 next birthday;
- $1,200 per policy, per year, for those aged 76 to 80 next birthday; and
- $1,400 per policy, per year, for those aged 81 and above next birthday.
Medisave-approved Integrated Shield Plans include:
- NTUC Income's IncomeShield and Enhanced IncomeShield
- AIA Singapore Private Limited's HealthShield Gold
- Great Eastern Life Assurance Co's SupremeHealth
- Aviva Ltd's MyShield
- Prudential Assurance Co's PRUshield
Related Info:
If you had a Medisave-approved plan with a private insurer before 1 July 2005, you will be transited to the new Medisave-approved Integrated Shield plans over a 2 year period by your private insurer. After the 2-year transition period is over, Medisave cannot be used to pay for the premiums of the old plans as they are not integrated with MediShield.
Service Indicators
(I) Claims return rate
The following claims return rate table shows how long it takes each insurer to process claims with positive payouts.
The phrase, cumulative claims return rate, refers to the percentage of claims processed by the insurer within one week, two weeks and one month. Note that the fifth column shows the median number of days it takes each insurer to process claims.
| Cumulative Claims Return Rate | Median Claims Return Rate (days) | |||
|---|---|---|---|---|
| <= 1 week | <= 2 weeks | <= 4 weeks | ||
| AIA | 91% | 94% | 95% | 0 |
| AVIVA | 89% | 93% | 96% | 1 |
| Great Eastern | 93% | 95% | 96% | 0 |
| NTUC Income | 91% | 94% | 97% | 0 |
| Prudential | 93% | 96% | 98% | 0 |
(1 Jul to 30 Sep 2013)
Note (1): The number of days insurers take to process claims includes the time it takes to obtain medical records from claimants or medical institutions.
(II) Letter of guarantee and medical records costs
When you are hospitalised, if your hospital can obtain a letter of guarantee from your insurer, you can reduce the amount of your upfront payment to the hospital. A letter of guarantee is an assurance of payment offered by insurers to hospitals, on behalf of a patient, for the portion of the hospital bill covered by insurance.
To process claims, insurers may require your medical records. Either you as a claimant, or your insurer, can request medical records from medical institutions. This request however, usually comes at a cost from $75 to $250. All insurers currently absorb the cost of obtaining medical records.
| Provides Letter of Guarantee** | Absorbs costs of obtaining medical records | |
|---|---|---|
| AIA | Yes | Yes |
| Aviva | Yes | Yes |
| Great Eastern | Yes | Yes |
| NTUC Income | Yes | Yes |
| Prudential | Yes | Yes |
**Provided to selected public hospitals and institutions - AH, CGH, NUH, SGH, TTSH and KTPH. Please check with the insurer for more information.
(As of July 2012)
Note (1): Insurers who absorb the cost of obtaining medical records, do so in more than 90% of cases. There might still exist situations where the claimant is requested to pay for medical records.
List of Singapore Hospitals categorised
Singapore Restructured Hospitals
Singapore General Hospital
Changi General Hospital
KK Women’s and Children’s Hospital
Alexandra Hospital
Tan Tock Seng Hospital
National University Hospital
National Heart Centre
National Cancer Centre
Singapore National Eye Centre
National Skin Centre
National Neuroscience Institute
National Dental Centre
Singapore Private Hospitals
Mount Elizabeth Hospital
Gleneagles Hospital
Eastshore Hospital
Mount Alvernia Hospital
Thomson Medical Centre
Raffles Hospital
Community Hospitals
Ang Mo Kio – Thye Hua Kwan Hospital Ltd
St Andrew’s Community Hospital
Westpoint Family Hospital
Singapore General Hospital
Changi General Hospital
KK Women’s and Children’s Hospital
Alexandra Hospital
Tan Tock Seng Hospital
National University Hospital
National Heart Centre
National Cancer Centre
Singapore National Eye Centre
National Skin Centre
National Neuroscience Institute
National Dental Centre
Singapore Private Hospitals
Mount Elizabeth Hospital
Gleneagles Hospital
Eastshore Hospital
Mount Alvernia Hospital
Thomson Medical Centre
Raffles Hospital
Community Hospitals
Ang Mo Kio – Thye Hua Kwan Hospital Ltd
St Andrew’s Community Hospital
Westpoint Family Hospital
Co-insurance and Deductible comparison
Note: NTUC Income Enhanced Shield rider has an annual cap of 3000SGD deductible for preferred, SGD2500 for Advantage, SGD2000 for basic
This table illustrates the possiblilty of removing the deductible and the 10% co-insurance portion of the medical bills by taking on the rider of the respective shield plans.
How to select medical / health insurance?
The best health insurance plan for you is the one that gives you the greatest flexibility and the most benefits for the lowest cost. Unfortunately, there’s no such thing as a standard health insurance plan. As you would when making any major purchase, you’ll need to shop around and get several quotes before choosing a plan. Here are a few points to consider:
What are the deductibles and co-insurance requirements?
How much freedom do you have to choose your own health-care providers?
Does the plan cover the health services that you need?
Does the plan cover the health-care providers you’re currently using?
Does the plan offer family, as well as individual, coverage?
Does the plan cover pre-existing conditions? Is there a waiting period? (The average waiting period is three months to one year.)
Does the insurance company have a good reputation in the industry and a positive rating from a major ratings organization?
How much freedom do you have to choose your own health-care providers?
Does the plan cover the health services that you need?
Does the plan cover the health-care providers you’re currently using?
Does the plan offer family, as well as individual, coverage?
Does the plan cover pre-existing conditions? Is there a waiting period? (The average waiting period is three months to one year.)
Does the insurance company have a good reputation in the industry and a positive rating from a major ratings organization?
The importance of Medical Insurance
Driver Mohammad Abdullah had saved over $30,000 in his Medisave account over 40 years – and saw it go in just three months after his daughter got ovarian cancer…
Please click here the above link to read more.
Reason for buying insurance : Medisave is our own money, although only our beneficiaries can use it later on. Medisave is NOT EVEN an insurance scheme for an individual. However, Medisave ought to and MUST be used to purchase an insurance plan. The most basic shield plan in Singapore is the CPF Medishield plan.
However, the Medishield plan, as it’s purpose is, is too basic. You will need a private insurer’s shield plan, in order to even be considered adequately insured.
Singapore Insurance Reviewer - Health Insurance Singapore
Health insurance, also known as medical insurance plan or shield plan in Singapore, is a type of insurance that reimburses a policyholder for any medical expenses.
When an individual is hospitalised (regardless of whether it is due to sickness or injury) or has to undergo a surgical operation (regardless of whether it is done in the hospital or day surgery), his health insurance policy is activated to reimburse his medical expenses.
Otherwise also known as hospital plans, hospitalisation plans or just healthcare insurance, this plan makes an ideal protection plan for anyone living in Singapore, because medical costs is NOT cheap.
Use of Medisave to pay for Hospital Bills and to Purchase Medishield
Medisave was introduced in April 1984 as a national medical savings account scheme for Singaporeans. The scheme allows Singaporeans to put aside part of their income into a Medisave account to meet future personal or immediate family's hospitalization, day surgery and for certain outpatient expenses.
Under the Medisave scheme, Singaporeans and PRs can withdraw part of the savings to pay the hospital bills of the account holder and immediate family members.
What many do not realise is that Medisave is not an insurance plan or policy. It's merely an account in the Central Provident Fund (CPF) that can be used to cover medical expenses.
Unfortunately, the amount will NOT be sufficient to cover for all kinds of medical expenses because there is a Medisave Withdrawal Limit.
Medisave covers up to:
1) $450 per day for daily hospital charges. This includes a maximum of $50 for doctor's daily attendance fees; and
2) A fixed limit per table of surgical operations. (See the Table of Surgical Operations Limit Figures here).
Apparently, the Singapore government does not wish you deplete your Medisave funds too fast.
Now, another cost-effective way to use your Medisave funds is to purchase the catastrophic medical insurance plan offered by CPF, i.e. Medishield.
MediShield is an individual health insurance plan designed to help Singaporeans to pay part of the huge hospitalisation bills for treatment of serious illnesses or prolonged hospitalisations at Class B2/C wards in restructured hospitals.
It's not meant for individuals who wish to receive medical treatment at higher class wards.
(More information on Medishield Catastrophic Medical Expenses Insurance here, and on Ministry of Health's (MOH) and Medishield website)
Health Insurance Excess - Deductibles and Co-Insurance
The government is a firm believer of co-sharing in footing the bill for medical expenses. Hence, similarly to car insurance, there is an "excess" in health insurance or medical insurance.
There are 2 parts to the excess, known as deductibles and co-insurance. A deductible is the initial amount you need to pay for claim(s) made in a policy year, before MediShield coverage starts. For exampe, the first $1,000 is NOT claimable. The co-insurance is the percentage of the bill you need to pay on the portion of the bill above the deductible. For eg, the first 10%, after the deductible is NOT claimable.
For Medishield, depending on the class of ward, the deductible & co-insurance are as follows:
DEDUCTIBLES
| ||
WARD CLASS
| ||
ITEM
|
Class C
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Class B2 & Above
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Deductible(aged 80 and below)
|
$1,000
|
$1,500
|
Deductible(aged 80 and above)
|
$2,000
|
$3,000
|
CO-INSURANCE
| ||
WARD CLASS
| ||
ITEM
|
Class C
|
Class B2 & Above
|
Co-Insurance
|
Claimable Amount
$1,001 - $3,000 : 20% $3,001 - $5,000 : 15% Above $5,000: 10% |
Claimable Amount
$1,501 - $3,000 : 20% $3,001 - $5,000 : 15% Above $5,000: 10% |
Without going into a numerical illustration, it is entirely obvious that Medishield is for those who are comfortable and satisfied with Class C or B2 ward facilities.
However, not all medical conditions allow an individual to stay in a Class C or B2 ward. For eg, a patient with leukemia needs a private room to himself. Increasingly common contagious or communicable diseases are compelling reasons to opt for a Class A ward.
Moreover, there's no guarantee that there's always "vancacies" available, given the rising number of female domestic workers and male manual workers in Singapore. Plus the less-than-fortunate elderly Singaporeans who do not have health insurance who then have to opt for Class C and B2 wards, you will have to wait for your turn.
Can one really wait for medical attention?
Obviously, merely relying on the Medishield means that if one should be hospitalised, the excess portion must be paid by the patient. This excess can be paid by Medisave. If the amounts exceeds the withdrawal limit, then the patient must pay cash.
Hence, the best way to use Medisave is to purchase a Medishield-approved and integrated shield plan offered by private insurers such as Aviva, Great Eastern Life, NTUC Income and Prudential, etc
New Generation Health Insurance Plans - "As-Charged" Basis
Unlike Medishield, Medishield Plus (Incomeshield Plan MA and MB) or the older types of medical insurance plans, the neweset type of health insurance plans or shield plans are on an "as-charged" basis. It means that after the insurance excess of the deductibles and co-insurance, the net medical expenses is FULLY reimbursed.
In fact, almost all insurance companies in Singapore now do offer plans of the as-charged nature.
On top of the as-charged benefit, some of the insurance companies also allow the TOTAL reimbursement of the co-payment portions, namely the deductibles (ranges from $1,500 to $3,000, depending on choice of ward) and co-insurance (10%).
In other words, it is entirely possible to choose ANY HOSPITAL in Singapore, choose ANY DOCTOR, choose ANY WARD, and pays nothing in cash!
Note that NOT ALL insurance companies' shield plans offer this benefit. Some only reimburse the deductibles portion while others only reimburse the co-insurance portion.
Another great feature is the option to enjoy international medical insurance coverage, no matter if the country you refer to is in ASEAN, or in Asia, Europe or America (USA, Canada, Chile, etc).
Note that NOT ALL insurance companies in Singapore offer these benefits.
Comparison of Health Insurance / Medical Insurance Plans - Which is the BEST Private Insurers' Shield Plan in Singapore?
Unfortunately, due to neccessary product differentiation in the health insurance market, the various insurance companies have made it very difficult to allow individuals to compare the strengths and weakness of their very own plans.
We at Singapore Insurance have courageously taken on the assignment. To be able to compare meaningfully among the various shield plans, and to be able to conclude which medical insurance plan is the best in Singapore, we have made the following assumptions:
1. We settle for maximum benefits, i.e. the highest insurance coverage possible for each area of event cover. For eg, some insurerance companies have a daily limit for "Room and Board" charges whereas many are of the "as-charged" basis.
2. We aim to have the widest insurance coverage. As we will highlight later, a good health insurance plan provides insurance coverage in the following three areas: consultation, treatment and medicine. For eg, not all private insurers have good OUTPATIENT insurance coverage
3. We aim for the insurance coverage that covers the longest time period. For eg, some coverage items, such as "Confinement in Community Hospitals" are covered by some companies for 45 days for a 12-month insurance period, while other are very generous, such that they cover all 365 days.
4. We strive for minimum insurance premiums.
The first 3 assumptions imply that we will opt for the greatest peace of mind while the 4th assumption means we will do so most cost-effectively.
Other important assumptions:
5. We will only select governement, pulbic, or restrucutred hospitals in our comparison. We can extrapolate the results later to see the gfreater medecial cost burden whne we consider prviate hospitals such as Gleneagles, Mt. Elizabth Hospotail, Thom mEdical Centre, etc later.
6. We will pick 3 medical conditions, one mildly severe (Appendix surgery or Appendicectomy) , one moderately severe (Stroke), and one very severe.
(Please refer to sample estimated bill sizes by Ministry of Health of each of the 3 medical conditions. )
The estimated average bill (50th percentile) for appendicectomy is about $4,311 in Singapore General Hospital (SGH), of which we will round off to $4,000 for all government hospitals.
The estimated average bill (50th percentile) for stroke with complications is about $5,989 in Tan Tock Seng Hospital (TTSH), of which we will round off to $6,000 for all government hospitals.
The estimated average bill (50th percentile) for heart surgery with complications is about $23,885 in National Heart Centre (NHC), of which we will round off to $24,000 for all government hospitals.
Health insurance plans and insurance benefits
A typical health insurance plan provides insurance coverage in the following 3 areas: consultation, treatment and medicine.
Also, the health insurance coverage covers consultation, treatment and prescribed drugs during the period of hospitalisation or surgery. This is known as i) inpatient medical benefits.
The medical coverage also spans across ii) hospital outpatient benefits, iii) accidental dental benefit, iv) benefit to reimburse deductibles and co-insurance, as well as v) final expenses benefit.
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