From registering for birth certificate to CDA account.
Parenting in the modern world goes beyond sheltering, changing, and feeding.
Choosing a shield plan for your newborn is VERY important.
Let's discuss in detail about Integrated Shield Plans (ISP or shield plan) for your newborn baby.
Just to be clear, Shield plans are add-ons to Medishield Life, so there is no duplicates or double payment.
In this article, when shield plan is mentioned, it is referring to Private Insurer's Shield Plans.
What is Deductibles and Co-Insurance?
With recent changes announced by Ministry of Health (MOH), all shield plans and their riders are to include some form of co-payment from yourselves.
Deductible is the first dollars out that is borne by yourself.
Co-insurance is to pay the next 5-10% of the total bill by yourself.
Good news however, there is a cap on the co-payment.
Each insurer offers co-payment differently, riders will reduce the co-payment.
We will include that as a factor of consideration between each insurer's offering.
There is no shield plan you can apply now that covers 100% for your baby.
We need a shift in this mentality that 100% coverage is the best.
Co-payment is not necessarily a bad thing as it curbs over-consumption of medical benefits.
And at the same time we many insurers are upping premium rates of their "100% covered" plans.
Some rider premiums have gone up by 50%!
Even for yourself, it may be more worthwhile to switch over to shield plans with co-payment schemes if health conditions allow.
We need coverage against hospitalisation but there is no need to pay premiums as if we need the hospital every year.
3 reasons you need to buy a Shield Plan for your newborn baby:
Reason 1: Better Coverage Against Medical Bills
When your kid is born, he/she will be automatically included into MediShield Life plan.
However, the coverage is usually insufficient.
We have real life examples of our private client's child. A simple procedure costs just slightly under $5,000!
Reason 2: Mum's Plan May Not Be Sufficient
Some mum's with own shield plans or corporate benefits that extends coverage to your child, but the coverage is usually limited.
Also to note, maternity plans only covers for insured events listed in the product summary.
There are some conditions which the kids might develop that fall outside this scope of coverage.
Reason 3: Insurability
When your baby is healthy, it is the best time to get insurance coverage. You never know what happens with diseases or injuries over time.
If your child has pre-existing conditions, the insurer might do one of two things:
1. exclude coverage for said condition
2. decline or postpone the case.
In event of insurer declining a case, it has to be declared in future health declarations as well.
Insurer might postpone the case, meaning to say you can apply for the case again down the road.
Before we start comparing, here are some considerations for Shield Plans for Newborn
#1 First Entry Age
All insurers has specified this requirement 15 days old or has been discharged from hospital, whichever is later.
And as mentioned earlier, maternity plans only cover for specific insured events.
So technically speaking, private insurers do not cover from day zero to day 14!
#2 Congenital Waiting Period
There are a series of waiting period imposed on most shield plans, congenital (for newborn) waiting periods some of them.
Certain benefits are not payable if the related condition is being diagnosed during this waiting period.
Each company's congenital waiting period will be compared in the later sections
#3 Pre-Exisiting Conditions
All shield plan have this.
Any pre-exisiting conditions the insured suffers prior to the policy date is not covered.
Even if it is declared, underwriters will determine if this is to be accepted as standard cases, or excluded.
There are instances where insurers postpone the application. Which means the case will not be taken up now given the underwriting circumstances. Parents may try again in 2 years time.
Shield Plans Comparison!
As this article is Best Shield Plan For Newborn Baby, we will go through various plans offered by each insurer.
And at the same time, we will mainly be comparing features critical for parents in making this decision easier.
Here are the shield plan's for private hospital coverage offered by each company:
- AIA HealthShield Gold Max
- Aviva MyShield
- AXA Shield
- Great Eastern SupremeHealth
- NTUC Enhanced IncomeShield
- Prudential PruShield
- Raffles Shield
I'll include the rider's name in the individual headings so that you know which to look out for as the plan names has changed with the new rulings.
We will be comparing the following features that is most applicable to parents and newborn babies:
- Congenital Waiting Period
- Co-payment
- Family member accommodation
- Coverage for HFMD/Dengue
- Outpatient benefits*
- Premiums for newborn babies: (Main Plan then Rider premiums)
*Outpatient benefits refers to non-hospitalisation events. For instance, visiting a GP for a cold.
AIA HealthShield Gold Max + AIA Max VitalHealth A with Optional Booster
- Congenital Waiting Period: No waiting period for baby!
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Rider brings deductible to $0, co-payment to 5% co-insurance capped at $3,000
- Family Member Accommodation: covers standard charges for additional bed
- Coverage for HFMD/Dengue: Yes
- Outpatient benefits: 20% off panel specialist consultation fees
- Premiums for newborn babies: $191 + $376
AIA's shield plan has no congenital waiting period. This is one of the most unique advantage.
Premium wise are is overall the most competitive.
The co-payment of 5% capped at $3000 provided that treatment and/or admission by AQHP or public hospitals.
HFMD & Dengue Fever coverage only applicable by adding the optional booster.
AIA also offers the 13 months pre-hospitalisation coverage period for panel doctors. This is the longest in the market, the next best by other insurer is 180 days (6 months).
AIA offers highest policy limit at $2 million!
Aviva MyShield + Aviva MyHealthPlus option C-II
- Congenital Waiting Period: 24 months waiting period for baby.
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Please read below for rider's effect on co-payment.
- Family Member Accommodation: covers up to $80 a day for 10 days
- Coverage for HFMD/Dengue: No
- Outpatient benefits: nil
- Premiums for newborn babies: $192 + $730*
*$730 is rider premium if bought without any preferred rates.
Aviva's MyShield has a family discount on your child cover for Plan 2 (A ward coverage) if both you and spouse are with AVIVA myshield plan 1 or 2.
If both you and spouse bought MyHealthPlus Plan 1 or 2 of
Option A, Option C, Option A-II or Option C-II (whichever is applicable), you can buy MyHealthPlus
Option C-II Plan 2 for your child under the Preferred Rate for Child(ren).
Only for AVIVA, do note that there is a deductible for the main plan and there is another deductible for the rider.
With purchase of rider option C-II, the main plan's deductible is replaced with the rider's deductible instead, ranging from $120 - $2,000.
Riders will bring co-insurance to 5%, capped at $3,000. (The actual wording is half of co-insurance, prevailing rate of 10% with certificate of pre-authorisation or pre-arranged appointment).
Aviva's plan has extensive coverage for PLANNED overseas treatment which is one of it's main unique selling points.
AXA Shield Plan A + AXA Enhanced Care
- Congenital Waiting Period: 365 days waiting period for baby
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Rider brings deductible to $0, limit co-payment to 5% co-insurance capped at $3,000 (panel only).
- Family Member Accommodation: covers up to $60 a day for 12 days
- Coverage for HFMD/Dengue: Yes
- Outpatient benefits: $12 for GP consultation fees
- Premiums for newborn babies: $148 + $450
AXA boasts competitive premiums compared to other insurers across most age bands. The riders for age 4 - 20 is one of the most competitive.
AXA's medical panel is Fullerton Medical Group, there are over 340 GP clinics and 400 specialist clinics over our island.
Consultation fees for GP visits are S$12. Standard consultation fees is S$100 for Specialist visits and follow up consultation fees are $70.
Diagnostics lab tests also enjoy preferential rate if referred by medical panel.
AXA's Letter of Guarantee (LOG) is also one of the best in the industry. If referred to hospital by panel specialist, the LOG is up to policy claim limit ($1 million for plan A).
We documented a real life example of a hospital bill claim for a newborn baby.
Read more about AXA Shield here
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Great SupremeHealth P Plus + Great TotalCare Elite-P + TotalCare Plus Advance
- Congenital Waiting Period: 730 days waiting period. $20,000 limit for first 730 days.
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Rider brings deductible to $0, limit co-payment to 5% co-insurance capped at $3,000
- Family Member Accommodation: covers up to $80 a day for 10 days
- Coverage for HFMD/Dengue: No
- Outpatient benefits: nil
- Premiums for newborn babies: $299 + $308 + $148
Great Eastern SupremeHealth has the second highest annual policy limit at $1.5 million.
There is 2 rider plans that you can attach to the shield plan. That is TotalCare and TotalCare Plus.
TotalCare mainly deals with co-payments and various other special benefits.
TotalCare Plus covers emergency/non-emergency overseas treatment and cancer treatments.
NTUC Enhanced IncomeShield + Deluxe Care Rider
- Congenital Waiting Period: 12 months waiting period
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Please read below for rider's effect on co-payment.
- Family Member Accommodation: covers up to $80 a day for 10 days only if parent's are insured under this plan. No coverage for self.
- Coverage for HFMD/Dengue: No
- Outpatient benefits: nil
- Premiums for newborn babies: $205+ $441
Enhanced IncomeShield shares the second highest annual policy limit with GE at $1.5 million.
With the rider, there is zero additional non-panel payment in event of hospitalisation.
It is note worthy that the family member accommodation benefit is slightly different as it only covers if insured's Child is hospitalised.
Good news! If baby is born in 2019, under NTUC good start bundle, just apply for NTUC Enhanced IncomeShield and enjoy free first year premium!
Read more here: https://ntucgoodstart.sg
Prudential PRUShield Premier + PRUExtra Premier Co-pay
- Congenital Waiting Period: 12 months waiting period
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Please read below for rider's effect on co-payment.
- Family Member Accommodation: covers up to $60 a day only for immediate family members in event of hospitalisation.
- Coverage for HFMD/Dengue: No
- Outpatient benefits: nil
- Premiums for newborn babies: $198 + $708
It is worthy to note that Prudential's premium is not age banded. There is also a "20% Pru-Well reward" if no claims have been made.
This is neither a good or bad thing, just that parents have to be more meticulous when calculating premiums.
The hospitalisation benefit is quite good as it allows immediate family members coverage in event of the insured's hospitalisation.
Raffles Shield Private + Raffles Key Rider
- Congenital Waiting Period: 24 months waiting period
- Co-payment: Max of $3,500 deductibles and 10% co-insurance. Please read below for rider's effect on co-payment.
- Family Member Accommodation: as charged up to 30 days only for immediate family members at Raffles Hospital/Gov Hospitals, 10 days for other hospital.
- Coverage for HFMD/Dengue: No
- Outpatient benefits: nil
- Premiums for newborn babies: $194 + $234
Raffles Shield has a unique offering which is the "A+ Raffles Hospital option". It is a "middle" ground offering, you get coverage to government hospitals A ward + Raffles Hospital as an additional option.
Another unique offering is the higher deductible option of up to $10,000. Good if the newborn baby is covered heavily by parent's corporate plans.
Conclusion
There you have it, each insurer's compared specifically for newborn babies.
The above premium rates are based on what is published on their brochures at time of writing.
They do not include premium discount offered for family members or programs or civil servants. Also, premiums above do not include Medishield Life Premium.
It's important to note that the Premiums are NOT guaranteed and will increase over time due to medical inflation.
The most important thing is for you to understand that when it comes to shield plans, your needs and your child's needs can be different.
My main advise is, do not stick to the same company as your own plan just for convenience sake.
Take some time to compare the plans.
The savings amount can be very substantial.
While planning for your kid's hospital coverage, it may be worthwhile to relook at you and your spouse's shield plan as well.
Click on WhatsApp button above or reach me on this page for comprehensive insurance planning
As a final disclaimer, due to the limit of my distribution capabilities, I cannot distribute Great Eastern and Prudential products. Please do your own due diligence in researching them.
Last updated on April 16th, 2020 at 05:30 pm