SINGAPORE – Potential savings for those intending to switch from old Integrated Shield Plan (IP) riders to new ones could be lower than the average 30 per cent reduction previously reported by the insurers.

This is because the savings they cited are for rider premiums, but the premiums that a customer pays include that for the IP on top of which the rider is purchased.

And several insurers have raised the base IP premiums, with one insurer hiking its IP premium by 76 per cent.

Despite this dilution of premium savings, those who switch to new riders can still see rather substantial savings over the course of their lifetime, potentially exceeding $100,000 for some.

The latest analysis of lifetime premiums was conducted by insurance advisory firm Havend after collecting data directly from insurers and through its market research. Havend provides advice on insurance coverage for consumers, including planning for retirement and other significant life stages.

Lifetime premiums here refer to the total premiums payable for the insured from the age of one to 100, but do not include MediShield Life premiums, which are a fraction of IP and rider premiums.

As insurers regularly review and adjust the benefits and premiums of their products, lifetime premiums will also change over time.

Nevertheless, the information helps consumers compare products with similar coverage and across insurers, according to Havend.

All Singaporeans are insured under the national MediShield Life scheme, which covers expenses incurred for hospitalisations and certain outpatient treatments, such as radiotherapy for cancer and kidney dialysis.

The optional private IP provides coverage on top of MediShield Life, typically to cover stays in a higher ward class ...