Some tips on medical Insurance

1. The Shield plans requires me to pay the deductible and to pay a share of the balance of the hospital bill. Some insurers offer a rider to cover these items, but it has to be paid in cash. Should I buy the rider?

For most people who are in good health, there is no need to take the rider. If you have to be hospitalised, you can pay these items from your Medisave account. This amount is not large, and can be self-insured.

If you insure these items, you have to pay a premium that covers the expected claim, expenses and a profit margin.

2. My employer now provides medical insurance to me. Should I buy a Shield plan to provide continuity of cover after I retire from work?

Many people take a Shield plan to provide continuity of cover. They pay a premium under the Shield plan, but they are not likely to make a claim under this play, as the hospital bill is likely to be paid by the employer.

It is advisable to take the Medisheild plan for this continuity of cover, as it has th elowest cost. There is no need to pay a high premium for a plan that you are not likely to use when you are covered by the employer.

If you do not take a Shield plan now, you can still apply for a Shield plan later when you retire from work. At that time, you will be accepted, if you are in good health. If not, you can still buy insurance by paying a higher premium.

Some people are willing to save on the premium for the Shield plan and apply for insurance only when it is needed. They can save on the premium in the meantime.