Preface
Why procure a Private Integrated Shield plan? Isn’t a Term or Participating plan that covers Early Critical Illness good enough especially there is a pay-out when diagnosed with one of the diseases covered under the policy?
The above question was posed to me by a client who does not have a Private Integrated Shield Plan in his whole life. I would speculate that:
- Peter (not his real name) does not think he would be in hospital one day;
- He reckons he could cover his hospital bills with the Life or Term insurance payout; or
- He has got no clue as to what functions the various insurance policies perform.
I shall not go into details of the subject matter deserves detail discussion and it cannot be adequately addressed here. I would like to present the big picture of a generic Private Integrated Shield Plan or PISP in short here.
PISP is basically an enhancement of our universal health care insurance Medishield Life. It can reduce or cap your out-of-pocket expenses like deductibles and co-insurance, and allow you to pick better wards in Restructured or government hospitals or even a private hospital standard room. Once such policy is incepted and annual premiums are paid, the policy ‘stick’ to you for your whole life i.e. you will continue to enjoy the policy’s benefits even when there are claims made. Also, as PISP is integrated with Medishield Life, admissions, deposits, payment are usually seamless.
Life or Term plans that cover Early Critical Illness do not cover hospitalisation expenses. Pay-out will only take place if the policy holder is struck with one or more of the covered critical illnesses at the stipulated stage. Thereafter, the policy usually terminates unless there is a multiclaim feature. Pay-out will not take place in time for the policy holder to pay the hospital bill.
So, before you declared, like Peter, that you do not need a Private Integrated Shield Plan like Peter, find a licensed financial advisor and find out more. You will not regret the time spent.
Disclaimer: All information are for informational purposes only and should not be relied upon as financial advice.