My Recent Claims Versus My Downgraded IncomeShield Health Insurance

In 2020, the first year of running this blog, I decided to downgrade my Enhanced IncomeShield from Preferred to Advantage. This meant that my plan’s eligibility went from private ward in private hospitals to A ward in public hospitals, and I did the downgrade because the premium difference was getting untenable to me back then.

Here are some reflections I have some 6 years down the line… and I hope it goes without saying that this is not financial advice.

Why I downgraded back then

Back then, the premiums for the Preferred Plan and Assist Rider amounted to S$784 a year (S$1,094 inclusive of MediShield Life) for someone in my age group, versus Advantage Plan and Assist Rider at S$284 a year (S$594 inclusive of MediShield Life). For added context, I was 32 back then (ah to be a young and innocent early-thirties again).

The absolute premium difference of S$500 per year is perhaps small, but I was also looking at the trend of premium hikes and the extraordinarily high premiums for older age bands, particularly for private hospitalisation coverage.

Personally, I felt at that time that it was pointless paying a premium for Preferred Plan which covered private hospitalisation for these reasons:

1. I am likely going to opt for public healthcare wherever possible
2. I am of the view that premium escalation will continue to worsen over time (and the cost of private hospitalisation coverage will increase more sharply)
3. Even if I kept my Preferred Plan back then, I am likely to downgrade to Advantage plan eventually given the exorbitant prices of private hospitalisation coverage as one ages
4. The premium savings can go towards self-insurance

How have premiums changed since?

Admittedly, I have not kept up to date with premium changes over the years, so the below findings are a result of some Googling and ChatGPT-ing, but unsurprisingly – premiums have gone up a few times over the past few years.

As a result, the premium difference between Preferred and Advantage has also escalated:

Age next birthday	Difference in cash payable	Difference in total annual premium
31–35	S$536	S$707
36–40	S$585	S$724
41–45	S$814	S$1,140
46–50	S$1,231	S$1,547
51–55	S$2,295	S$2,450
56–60	S$3,009	S$3,116
61–65	S$4,430	S$4,430

I estimate that I saved about S$500 a year from 2020 to 2023, before premiums went up in 2024 where I also crossed to the next age band of 36-40. The savings then became S$724 a year for 2024 to 2026.

That’s a premium savings of S$4,172 across 7 years.

My recent claims

As we age, health often starts to become more of an issue, and I also had to claim for a few of health-related incidents. There were a total of 4 claims in the past 6 years:

Period	Claim	Cost	Pro-Ration	Outcome
April 2024	Claim 1 Private Clinic (non-panel)	S$647.14	S$420.64 admitted (65% pro-ration)	After non-payment S$2,000 deductible: S$0 payout I paid S$647.14 (S$550 Medisave, S$97.14 cash)
April 2024	Claim 2 Public Hospital (unsubsidised)	S$441.67	None (within plan’s coverage)	Within plan’s coverage, no po-ration: S$441.67 claim admitted IncomeShield paid: S$397.50 I paid: S$44.17 (Medisave)
May 2026	Claim 3 Public Hospital (unsubsidised)	S$1,017.60	None (within plan’s coverage)	Within plan’s coverage, no po-ration: S$1,017.60 claim admitted IncomeShield paid: S$915.84 I paid: S$101.76 (Medisave)
June 2026	Claim 4 Private Clinic (panel)	S$853.36	S$469.35 admitted (55% pro-ration)	IncomeShield paid: S$422.41 I paid: S$430.95 (Medisave)
		Total: S$2,959.77		IncomeShield Paid: S$1,735.75 I Paid: S$1,224.02 (S$1,126.88 Medisave, S$97.14 cash)

In total, I paid S$1,126.88 from my Medisave and S$97.14 from cash for my various claims. If I had maintained my Preferred Plan, I would have saved on Claims 2 to 4 which amounts to S$576.88. Claim 1 would not have any payout since I made the mistake of visiting a non-panel doctor.

Update: as a few have asked, I wish to clarify that these visits were for scopes which are considered day surgeries and hence claimable under integrated Shield plans

Some reflections

Of course, this seems like a big win for me – S$4,712 of premium savings by downgrading significantly outweighs the S$576.88 I would have saved by maintaining my Preferred Plan, and this was indeed my intention when I first downgraded.

Reality, however, can often challenge what we intend to do theoretically. While I continue to have a preference for public healthcare, there are times where I opted for private options because I felt my case was urgent enough to warrant a same-day visit. It is possible to make a same-day appointment at a public hospital, but from experience it is much easier to do so at a private one.

Nonetheless, my Advantage plan has not precluded me from seeing a private doctor when I feel like I need to, though it is a bit concerning for me that the pro-ration factor has dropped from 65% to 55%.

I don’t regret my decision to downgrade, though the two times I was at a private clinic awaiting my bill, I did wonder briefly whether I would have a better peace of mind had I maintained my private hospitalisation coverage.

Moving forward

The downgrade from private hospitalisation coverage to a public one can often become a one-way street. As I accumulate more health issues as a result of getting on my years, the underwriting of any upgrade or new medical plan gets increasingly tougher. Honestly, this does continue to weigh in my mind.

But looking at the premium difference which worsened over the past couple of years, I think that my strategy continues to be sound. With limited resources, we simply can’t have the best of everything, and this includes health insurance. I will continue channel funds, above and beyond the premium savings, towards building up a sinking fund for self-insurance in future.

Your situation and priorities are likely to be very different from mine

While I hope my sharing can give more info to those who are pondering their medical insurance choices, I did not write this intending to push anyone towards any decision regarding their health coverage. Please do your own due diligence before making any financial decision as your situation and priorities are likely to be very different from mine.

In the meanwhile, if you’re looking for cards to pay for your insurance, check out this article:

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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.

He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.

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