Double coverage for medical insurance

Dear Mr Tan,

I am insured for group medical by my company. An insurance agent advised me to buy a Shield plan from his company so that I can continue to get coverage after I leave this employer. I read your previous posting that this is double coverage. What should I do?

Which company offer the best Shield plan? Is it NTUC, AIA or Avivia? What is your advice?

REPLY

If you buy a Shield plan on top of the medical insurance provided by your employer, you are paying the full premium for the Shield plan for partial or no coverage, as most of the medical cost can be met from the employer's plan.

Here are two better options for the employee:

1) Ask your employer to buy a Shield plan. This allows allows you to continue the plan on your own when you leave your employer, i.e. the plan is portable. As the Shield plan has a deductible, you can ask the employer to buy the rider to cover it. If the total cost to the employer is higher than the group plan, you can volunteer to pay a portion of the total cost.

2) Ask your employer to stop the group plan and contibute the premium to your Medisave account. You can pay for your own Shield plan using the Medisave.

Both options avoid the wastage of double coverage and reduces the cost to the employer and employee.

I am not familiar with the coverage and premium charged on the Shield plans by the various insurance companies. I am not able to comment on the plan that is best for you.