MediShield Life vs Integrated Shield Plan: 3 Common Myths Busted

We all understand the importance of having insurance, but have you ever stopped to consider how much coverage is truly enough? When it comes to health insurance, some may think that the mandatory MediShield Life is sufficient. However, a quick search shows that around 70% of Singaporeans have opted to purchase the additional Integrated Shield Plan (IP).

Is this extra coverage really necessary, or is this another case of Singaporeans being kiasu again? Let’s bust some common myths and find out.

 

What is MediShield Life vs Integrated Shield Plan?

MediShield Life is a health insurance scheme that protects Singapore Citizens and Permanent Residents from large medical bills for life, regardless of age or pre-existing medical conditions. 

It is designed to cover subsidised hospitalisation in Class B2/C wards and outpatient treatments at public hospitals. MediShield Life pays up to the claim limit, with deductible co-insurance covered by MediSave and/or cash.

There is also no lifetime claim limit (and the annual claim limit is currently $150,000), which means you don’t have to worry that your coverage will stop, even if you incur high medical expenses early in life.

Integrated Shield Plan (IP) is an optional medical insurance provided by private health insurers such as AIA, Singlife, Great Eastern, Income, Raffles Shield, and Prudential. You get additional coverage beyond MediShield Life, targeted at Class B1 or A wards in public hospitals or private hospitals, but for a significantly higher premium. 

Here’s a table that sums up their differences:

	MediShield Life	Integrated Shield Plan
Hospital care	Public hospitals (B2/C wards)	Public hospitals and private hospitals (A/B1 wards)
Choice of doctor	No	Yes
Premiums	Lower premiums, increases as you age	Higher premiums, increases significantly as you age
Annual Limit	Lower	Higher
Payment	Fully payable by MediSave	Payable by MediSave, up to certain limit

 

Still have questions about both plans? Let’s clear up some common myths:

Myth 1: If I have Integrated Shield Plan, I don’t need MediShield Life

Think of IPs like upsizing your fast-food meal. You’re still getting the same burger, but now you’ve added larger fries and a bigger drink. The original meal doesn’t disappear—you’re just paying extra for the upgrade.

Similarly, when you purchase an IP, you’re not replacing MediShield Life coverage. The extra premium you pay is for the additional coverage that the IP gives you, such as higher ward class coverage and additional benefits like pre- and post-hospitalisation benefits (excluding riders, co-insurance and deductibles).

 

Myth 2: MediShield Life’s coverage is not good

Not everyone needs to upsize their meal. If the basic set is satisfying enough, why pay more? The same logic applies to health coverage.

MediShield Life is designed to cover essential medical needs, particularly if you’re staying in a Class B2 or C ward in public hospitals. But if you’d prefer a higher ward class or a private hospital, that’s where an IP comes in.

Note that MediShield Life covers you even if you are hospitalised in a Class A or B1 ward or in a private hospital—just expect to pay significantly more because MediShield Life benefits are pegged to the estimated Class B2 and C wards expenses in public hospitals. 

 

Myth 3: MediShield Life’s premiums are too expensive

Good news: MediShield Life premiums are fully payable with MediSave. The government also offers various subsidies for many Singaporeans to help offset the cost of premiums.

For example:

• Pioneer Generation: 40% to 60% subsidies
• Merdeka Generation: 5% to 10% subsidies
• Lower-income Households ($0 – $1,500): 25% to 50% subsidies
• Lower-middle-income Households (>$1,500 – $2,600): 20% to 45% subsidies
• Upper-middle-income Households (>$2,600 – $3,600): 15% to 40% subsidies

And don’t worry— if your MediSave balance is insufficient to pay for premiums, you may apply for Additional Premium Support. This covers your MediShield Life premiums for the next 2 policy years upon approval.

 

Should you stick with MediShield Life or get an Integrated Shield Plan?

It all comes down to your preferences and budget. Are you comfortable sharing a Class B2 or C ward with others? If so, you might prefer to stick with the coverage provided by MediShield Life.

However, if you value more privacy, the choice of doctor, air-conditioned rooms, and can afford the higher premiums in the long run, you may want to consider purchasing an IP for this additional coverage.

Found this article useful? Read more about MediShield Life here!