
Insurance - as a topic often avoided in discussions, this inevitably creates a knowledge gap where individuals may unknowingly be under or over-insured. This lack of knowledge however, can be dangerous as shown in the recent cataract case where MediShield Life only paid $4.50 of the patient's $12,000 bill.1 To avoid such scenarios from happening, it is imperative for you to understand your existing coverage levels. In this article, we touch on MediShield Life, highlighting the pros and cons and showing you how you can receive comprehensive health coverage.
(See "The Beginners Guide To Understanding Insurance")
What is MediShield Life?
MediShield Life is a basic health insurance that automatically enrols all Singaporeans and Permanent Residents (PRs) regardless of age or pre-existing health condition. Coverage levels are based on the costs of hospitalisation in Class B2/C wards in public hospitals with coverage also provided for selective outpatient treatments. This helps Singaporeans with their hospitalisation bills and ensures that everyone will have access to affordable healthcare.
(See "4 Mistakes All Couples Must Avoid Making With Their Finances")
Is MediShield Life sufficient?
MediShield Life is a government initiative to help make medical care affordable for all. However, individuals are still required to co-share the cost of healthcare with MediShield Life applicable for co-insurance and deductibles.
While adding an Integrated Shield Plan (IP) and rider to MediShield Life used to offer individuals full coverage, this will no longer be possible with the new co-payment riders. Set to replace the existing full IP riders, these new riders are effective from 2021 and will be subjected to a 5 per cent co-payment in future.2
(See "3 Things You Must Know About Integrated Shield Plans")
Find Out If You Have Sufficient Coverage
Your next step...
#1 Get covered now
If you do not have an Integrated Shield Plans (IP) and/or rider, consider increasing your coverage now. An essential addition, IP allows you to receive a higher coverage level that includes treatment in private hospitals and Class A wards in public hospitals. Additionally, IP riders also help to cover the cost of co-insurance and deductibles.
While co-insurance and deductibles will be subjected to a 5 per cent co-payment in future, having an IP and rider will still provide coverage for up to 95 per cent. This will help to lower the payable amount thus offloading a large part of your medical bills.
(See "Are Riders The Cheaper Alternative To Critical Illness Insurance?")
#2 Consider Critical Illness plans
Additionally, you may also wish to enhance your coverage with a Critical Illness (CI) plan. Covering for up to 119 medical conditions, CI plans offer a lump sum pay-out in the event of a successful claim. With no restrictions on how the money is to be spent, you would be able to use it as you wish. This can be used to replace your income during your recovery period or to offset any large hospital bills and pay for the cost of any follow-up treatments required.
(See "Which Is Better: Critical Illness or Cancer Plans?")
TL;DR Summary
What is MediShield Life? |
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Benefits of MediShield Life
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Potential limitations of MediShield Life
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You may wish to complement Medishield Life with: |
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Discover Your Protection Needs
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Etiqa Insurance, Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
Interested to learn more? Check out these articles:
Comparing Annuities (2019 Edition)
4 Reasons To Not Use A Free Travel Insurance
The Secret Behind Avoiding Expensive Medical Bills

Benefits of MediShield Life
Potential limitations of MediShield Life