Premium for the Shield rider is too high

I usually advice people to buy the Shield plan, without the rider to cover the Deductible. If you are hospitalised, you can pay the Deductible from your Medisave. This does not need to be insured.

Here is the reason:

> Assume that the chance of being hospitalised for your age band is 10%
> The Deductible (to cover B1 class) is $2,000.
> The cost of claims is $200 (i.e. 10% X $2,000)
> The premium that you have to pay is about $300 (usually 50% more than the cost of claims).
> $100 each year goes towards the expenses, including commission to the agent.

If you insure for 10 years, you have to pay a total premium of $3,000 and are likely to make 1 claim of $2,000. The additional $1,000 goes to pay expenses.