Understanding Hospital Cash Insurance: What’s Covered & How Much We Can Claim

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While no one likes thinking about it, the reality is that there are over 550,000 hospital admissions in Singapore each year. Across age groups, the elderly are most likely to be hospitalised, but the statistics also highlight the prevalence of hospitalisation among younger individuals.

Regardless of our health, we cannot take our health for granted, and may require hospitalisation one day. That’s why, it pays to understand and plan for it.

The Importance of Supplementary Healthcare Coverage

At the base layer, we can rely on MediShield Life to cover against large hospital bills. However, we need to account for the deductible (between S$1,500 and S$3,000) and co-payment (ranging from 10% to 3%). While we can use our MediSave for these payments, we should also be aware of the claim limits (which are based on our wards and treatments we receive).

To enhance hospitalisation coverage, more than 70% of Singapore residents have bought an Integrated Shield Plan (IP) – with many also further boosting coverage with additional healthcare riders. Still, the same limitations, albeit at reduced levels, persist. Even if we have an IP, there may be deductibles, co-insurance, claim limits, and approved treatments to consider.

Understanding the Financial Implications Beyond Hospital Bills

As we may still incur some out-of-pocket payments for our hospitalisation bill, we should also understand some common fees that we may run up during a hospital stay. Certain fees, including ambulance fees, optional treatments, or buying or renting certain mobility aids and devices such as wheelchairs, may be excluded from coverage under MediShield Life and/or private IPs.

The post-hospitalisation period is also not the time to be rushing back to work (to start earning an income). Instead, we should be focusing on healing and recovery. However, this may mean a lack of income for our family, even as daily expenses and bills continue.

We may also require follow-up appointments and medication and/or treatments. Again, this may not be fully covered under MediShield Life and private IPs. Ongoing treatment may also require us to spend on taxi and private hire rides if we do not have our own mode of private transportation.

Since most of us will not have a specific hospitalisation fund set aside, we will likely need to dip into our emergency savings fund for all of this. We may also have a hard time replenishing this emergency savings fund as we may see reduced or no income during our recovery period.

For business owners and self-employed individuals, including freelancers and private-hire drivers, the impact would be even greater. This is because while employees can tap on up to 60 days of hospitalisation leave, inclusive of 14 days of medical leaves, self-employed individuals do not have such benefits. They would likely see a drop in their income during the period they are not working. For employees, such as sales representatives and sectors where overtime and shift work are very common, they may also see their variable income reducing.

Those who are recovering at home may also require care-taking support from a loved one for a period of time – potentially impacting household income even more.

Addressing Coverage Gaps with Hospital Cash Plans

This is where Hospital Cash Plans, such as Singtel Hospital Cash, can supplement our existing hospitalisation coverage. By providing us with a daily cash benefit when we are hospitalised, Hospital Cash Plans can provide a supplementary income during an uncertain period.

Using Singtel Hospital Cash as an example, we can see that our coverage is provided for up to 365 days of hospitalisation – and is renewable each year. The cash payout can be used as a buffer in the unfortunate scenario of a prolonged hospital stay.

In critical moments, when we are admitted to the Intensive Care Unit (ICU) or hospitalised while retrenched, the Singtel Hospital Cash plan beefs up our payouts – with double or extra 20% of the cash payout per day respectively. If we wish, we can also further boost our daily cash benefits by 3x via an optional rider.

Source: Singtel

Even after our discharge from the hospital, the Singtel Hospital Cash policy continues to provide a cash payout for up to 5 days of medical leave.

Exploring Coverage Levels and Benefits

With Singtel Hospital Cash, there is typically some flexibility to opt for our desired coverage level. The Singtel Hospital Cash plan offers three tiers of coverage: Classic, Deluxe and Premier.

Depending on the coverage tier we choose, we can receive between S$125 and S$500 for each day of hospitalisation.

Source: Singtel

Along with coverage levels, Singtel also displays premium amounts transparently on its website. As expected, coverage under higher tiers will be more costly.  Premiums also rise with age – and it should be quite intuitive why.

Source: Singtel

Practical Illustration to Understand Payouts

Let’s look at a scenario where a 45-year-old Singaporean male, covered under the Singtel Hospital Cash – Premier plan, is hospitalised. Firstly, we will know that he receives a cash payout of at least S$500 per day, and that his annual premium is S$1,010.01 (inclusive of a 25% discount and 8% GST).

In this scenario (depicted below), he is hospitalised for a month – in the Intensive Care Unit (ICU) for 3 days and in a normal ward for 27 days. After he is discharged, he receives 7 days of medical leave  – of which, his policy only covers for 5 days.

Source: Singtel

In total, he will receive a cash payout of S$17,250. This amount does not have to go towards his hospital bills, as he would naturally have some coverage under MediShield Life and potentially an IP.

Since he was hospitalised for a relatively serious condition, he may wish to take time off work to fully recuperate, and spend some time with his family. This cash payout will enable him to get back on his feet.

It Pays To Be Healthy (And To Sign Up With Our Loved Ones)

To encourage individuals to stay healthy, if we do not make claims on our policy, we can earn a 5% premium refund on our first renewal and 10% refund for subsequent renewals.

Also, we can enjoy group discounts when we sign up for the policy in groups of between 2 and 10 people. This can be used to provide affordable coverage for our spouse, parents, in-laws, and children, as long as we meet these criteria: (a) a Singapore citizen or PR, or (b) a foreigner with a valid work pass, dependent pass or long-term visit pass.

As a telco operator,  Singtel understands the needs of its customers. Singtel works with Etiqa Insurance to roll out this product with telco-specific benefits to its customers.

Enhancing Benefits and Affordability Through Singtel

As an incentive to sign up, those who also have a telco plan with Singtel can enjoy telco bills and roaming charges reimbursements if we are hospitalised in Singapore or overseas respectively. This not only helps to lower our expenses while hospitalised, but also ensures we remain connected to our loved ones.

Source: Singtel

The Singtel Hospital Cash policy isn’t the only policy we can buy via Singtel either. Within the ecosystem, we can gain coverage from products under Singtel Life, Health or Wealth Protect categories. For example, to get protection against the top 3 critical illnesses of cancer, stroke and heart attack, you can purchase Etiqa’s 3 Plus Critical Illness from Singtel.

Supplement Your Coverage and Enjoy Great Offers

As a launch promotion, Singtel is also giving customers a 10% cashback (on top of the 25% discount). Using John’s example above, we know he pays a premium of S$1,010.01 (inclusive of a 25% discount and 8% GST) for his Singtel Hospital Cash coverage. With this 10% cashback, only available till 31 December 2023 and applied on the premium before GST, he will get S$93.52 cashback.

Furthermore, if he has already purchased another product under Singtel Life, Health or Wealth Protect, he will receive the Additional 10% cashback of S$93.52. That brings his total cashback to S$187.04!

So if we are concerned about the additional cost of a hospitalisation that may not be covered under our hospitalisation plan, we can consider the Singtel Hospital Cash to cover the cost gaps that we may face.

Disclaimer:

Age refers to attained age.

This policy is underwritten by Etiqa Insurance Pte. Ltd (Company Reg. No. 201331905K) (“Etiqa”). Terms and conditions apply. This content is for reference only and is not a contract of insurance. Full details of the policy terms and conditions can be found in the policy contract.

It is usually detrimental to replace an existing accident and health plan with a new one. A penalty may be imposed for early plan termination and the new plan may cost more, or have less benefits at the same cost. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you.

Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Etiqa or visit the General Insurance Association (GIA) or SDIC websites (www.gia.org.sg or www.sdic.org.sg).

This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is correct as at 15 Dec 2023.

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