What Child Insurance Does Your Child Need In Singapore
Healthcare expenses in Singapore are becoming more expensive every year. In fact, medical inflation was 10% in 2019, and is expected to rise by over 9% in 2020. In the event that your child suffers an accident or illness, health insurance can help cover some of these rising medical costs—but is it really enough?
That’s an important question you’ll need to answer if you want to avoid costly medical bills. Because when your health insurance policy is supplemented by personal accident insurance, you may realise that the protection you get from these policies can help lessen your financial burden.
What Is Health Insurance?
Health insurance helps to cover the cost of medical expenses whenever your child suffers an injury, illness or a disability. MediShield Life is a basic health insurance plan that offers lifetime protection against large hospital bills and selected costly outpatient treatments for all Singapore citizens (SCs) and permanent residents (PRs), including those with pre-existing conditions. The level of benefits is sized based on the cost in Class B2 or C wards and subsidised treatment in the public hospitals
Integrated Shield Plans (IPs)
While MediShield Life provides basic hospitalisation protection, you may want the option of upgrading your child’s ward entitlement to an A ward or consider admitting your child into a private hospital where waiting times are generally shorter and private rooms are available. In either case, having an Integrated Shield Plan (IP) like Enhanced IncomeShield is something to consider as it will reduce the out-of-pocket costs associated with treatment.
As a parent or soon-to-be parent, Enhanced IncomeShield enables you to enjoy as-charged coverage for eligible inpatient and outpatient hospital treatment, and pay for premiums using your MediSave account for up to $600. Furthermore, if you have a child born in 2020, you can get a complimentary one-year health insurance plan and choose between Enhanced IncomeShield or IncomeShield Standard Plan, as long as your child is a Singapore Citizen or Permanent Resident. This is a good way to ensure your child is protected as early as possible.
Does Your Child Need Personal Accident Insurance?
Personal Accident (PA) insurance isn’t just for adults working in risky professions. The reality is that misfortune can happen to anyone at any time—and children aren’t immune to accidents. While younger children may be more susceptible to accidents, due to their natural curiosity and energy, children in their teens can also suffer injury from extracurricular activities or something as little as slipping on the bathroom floor. They are also vulnerable to injury while riding in a vehicle, as nearly a quarter (24%) of children involved in car accidents require hospitalisation (Source: CNA). And it doesn’t take much more than a simple accident to lead to a hefty hospital bill. If you want to see just how much you can expect to pay, you can visit the Ministry of Health (MOH) benchmark estimator.
Health insurance and personal accident insurance are two policies that are meant to do two different things—but the most important difference is that having a PA policy can soften the financial impact of an unforeseen accident in the event that your child suffers an injury, illness, disability or accidental death.
Here are the key differences between the two policy types:
|Health Insurance||Personal Accident Insurance|
Is Personal Accident Protection Necessary If You Have Health Insurance?
This is an important question that every parent should think about, because it only takes one simple accident or illness to show just how important personal accident insurance can be.
Here’s a simple real-world example of why having complementing your child’s health insurance with personal accident insurance is a smart choice.
Scenario: Young child suffers food poisoning and needs hospitalisation
Peter, a 5-year old, was diagnosed with food poisoning after experiencing high fever and vomiting. He received inpatient care at a private hospital provided by our panel for six days which amounted to a total bill of $6,000 for his hospitalisation and treatments.
Here’s a quick breakdown of how Peter’s parents were able to minimise the impact of his medical bill by protecting him with Income’s Enhanced IncomeShield with a Classic Care Rider and PA Assurance Plan 2 with Infectious Disease Cover.
|Admission & Hospitalisation|
|Coverage||Claimed with Enhanced IncomeShield||Claimed with PA Assurance|
|Hospitalisation and treatment at a Private Hospital||Yes ($2,250 under the Preferred Plan; $3,150 under Classic Care rider; $600 out-of-pocket amount)||$600 out-of-pocket claimable under ‘Medical Expenses’ coverage|
|Daily Hospital Income||No||Yes (6 days X $200 a day = $1,200)|
|Discharge & Recovery|
|Infectious Diseases Medical Expenses||No||Yes ($600)|
Having PA Assurance can make a big difference in covering the cost of Peter’s medical bill. With the Classic Care Rider, Peter’s parents only need to pay ten per cent co-payment of the total bill— treatment provided by our panel which is up to $3,000.
The total payable out-of-pocket amount before PA Assurance coverage is
$3,000 (10% co-payment) + $600= $3,600.
PA Assurance can help to reduce out-of-pocket amount that is not covered under EIS Preferred plan and Classic Care rider by providing the following payouts to cover other expenses incurred during Peter’s hospitalisation and recovery:
- Medical expenses ($600)
- Daily hospital income ($1,200)
- Total claimable under PA Assurance: $1,800
The final payable out-of-pocket after PA Assurance coverage is $3600 - $1,800 = $1,800
This policy covers some of the most common childhood injuries such as food poisoning, drowning hazards and bumps and scrapes at home. And with the Infectious Disease Cover, your child is protected from up to 21 common childhood illnesses such as hand foot and mouth disease (HFMD), dengue fever and more.
Ready to Learn More About Income’s Health and Personal Accident Plans?
Having the right health insurance coverage to protect your children from injury or illness is important, as is having the ability to select the hospital, ward and doctor of your choice. However, having insurance protection for your children that’s more comprehensive requires a combination of policies that complement each other and don’t overlap—health and personal accident insurance.
These policies can give you greater peace of mind knowing that you can provide the best possible medical care to your children while minimising the financial impact of healthcare costs.
Learn more about how Income’s Enhanced IncomeShield and PA Assurance plans can help you better protect your children for peace of mind. You can also visit Adviser Connect to speak to a trusted expert about these plans.
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income insurance advisor.