Tips on Insurance Policies
Don’t be too quick to give up your insurance policies, thinking that it’s the fastest way to cut down on expenses. Consider why you took up the policy in the first place. The truth is you will never be able to buy back the same coverage at the same price.
However, do review your insurance portfolio with your insurance adviser or insurance company. Different products have different features. Explore the possible options of reducing the premium or stopping the premium temporarily.
Giving up an important insurance plan should only be the last resort when you have exhausted all options.
Knowing Your MediShield
MediShield is a basic medical insurance, designed to cover Class B2 and C public hospital bills. Manage your expectations as it will not be sufficient to cover the expenses of higher class wards or private hospitals and you may end up paying more cash.
There is an annual limit you can withdraw from CPF Medisave to pay for the premium of MediShield or Integrated Shield. When the premium exceeds the withdrawal limit, you will have to pay the difference in cash or the policy will lapse.
Ensure that you maintain sufficient funds in your CPF Medisave to pay for your MediShield or Integrated Shield premium. You can top up the account with cash if the account balance is low.