The Myths about Insurance

1. Medisave & MediShield are enough to cover my hospitalization expenses
   
   MediShield is a national medical insurance scheme that covers part of the large hospitalisation bill incurred for treatment of catastrophic illnesses at a Class B2/C ward up to age 85 only . You will need to pay for the deductibles and co-insurance before the bill can be subsidised by MediShield. Hence you will not be able to claim for amounts within the deductible limits.
   
   Medisave are your savings in the CPF account for medical expenses. It might be more prudent to use your Medisave to buy Enhanced Incomeshield whichhas lifetime cover and provide as-charged feature*.
   
   
2. The young and healthy do not need to buy insurance
   
   Insurance should be bought when you are young and healthy as you may not be able to obtain cover when you develop a medical condition or have a disability. Accidents , food poisoning and new viruses such as H1N1, SARS also affect the young and healthy.
   
   
3. There is no need to buy insurance for my spouse and children
   
   A major illness affecting your dependants can wipe out a large part of your Medisave as treatment in a restructured hospital for conditions like heart attack and cancer can easily cost up to $ 20,000 ^#.
   
   
4. My dependants and I are already covered by my employer under Comprehensive Co-payment Scheme(CCS).
   
   Your dependants and you are only covered while you are employed. When you leave your job the cover ceases. Your dependants and you may also not be able to get complete cover due to a change in your medical condition then.
   
   
5. I already have bought insurance and it should be sufficient.
   
   Many are mistaken that their insurance will cover most events and they are well protected. The reality is that you need different insurances plans to cater to different protection needs.
   
   
   * Subject to terms and admission of ward class.
   
   # Source www.moh.gov.sg