Many people think that the hospitalization and surgical plans (MediSave and MediShield) that are managed by our government using the CPF monies are enough. Well, it is clearly not the case. The following is an excerpt from the Life Insurance Association of Singapore.

Health insurance protects you and your family from the financial loss you could potentially suffer in the event that an accident, illness or disability leaves you jobless and without an income during your recovery. It provides cash to make up for your income loss as well as covers the cost of your medical treatment.

MediSave and MediShield are not enough

Medisave, which is deducted from one’s salary, will only cover a marginal amount of medical expenses but it can be used to purchase MediShield.

While most Singaporeans have MediShield, it should be noted that this only covers up to 80 per cent of the expenses in Class B2/C wards and a marginal amount of expenses in Class A wards and private hospitals.

Further, MediShield covers a person only up to 85 years of age. Beyond age 85, he has no cover.

With the impending implementation of “means testing”, people in a higher income group will not be granted the same level of subsidy as those in the lower income group and should therefore expect to pay more for their medical expenses.

Given the insufficiency of MediShield and MediSave, it would be prudent to have a comprehensive personal health insurance plan as a back-up to ensure that your medical costs are fully taken care of in the event of an accident and ailing health.

You can read more about it here. And if you are really interested in protecting yourself further, you can read our earlier post here and contact us now at


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: