Fixed amount you pay out-of-pocket before insurance starts covering costs. Common in hospitalisation and motor policies.
A deductible is the fixed amount you must pay out of pocket before insurance starts contributing toward a claim. It's a 'first loss' borne by you in exchange for lower premiums.
Deductibles are most common in hospitalisation, motor, travel, and home insurance. Life insurance and pure death-benefit policies don't have deductibles.
MediShield Life deductible per inpatient claim: ranges from S$1,500 to S$3,500 depending on age and ward class.
Class A ward, age below 80: S$2,500.
Day surgery: S$1,500 – S$2,500.
Outpatient cancer treatment: S$3,000 per policy year.
Deductibles reset per claim year, except where annual deductible structures apply.
After deductible: you pay co-insurance (typically 10% under MediShield Life) on the remaining bill.
Worked example: S$50,000 hospital bill, age 50, Class A ward.
Step 1: pay S$2,500 deductible out of pocket.
Step 2: co-insurance 10% × (50,000 − 2,500) = S$4,750.
Total out-of-pocket: S$7,250 unless you have an IP rider that covers most of this.
An IP rider can reduce the deductible + co-insurance share to 5% co-payment (the regulated minimum since 2021).
Higher deductible = lower premium. The trade-off is essentially how much risk you self-insure.
Motor and travel insurance often let you choose deductible levels at purchase. A S$1,000 deductible vs S$200 might cut your premium by 20%.
Calibrate to emergency fund: never carry a deductible higher than what you can absorb in cash without disrupting other goals.
For hospitalisation, the MediShield Life deductible is fixed; an IP rider buys the protection down. The rider premium is worth it only if you'd struggle with a S$2,500 – S$7,500 surprise bill.
The amount you pay out of pocket per claim before insurance starts paying. Common in hospitalisation, motor, travel, and home insurance — not in life or pure CI policies. Higher deductible = lower premium (you self-insure more).
Ranges from S$1,500 to S$3,500 per inpatient claim depending on age and ward class. Day-surgery deductibles are smaller. Annual deductibles also exist for some outpatient treatments. Integrated Shield Plan riders can reduce this materially.
Only if you can comfortably absorb the deductible amount from your emergency fund. Saving S$100/year in premium isn't worth a S$5,000 surprise bill you can't pay. Match deductible to your liquidity.
Deductible is paid first, then co-insurance kicks in on the remainder. Example: S$50,000 bill, S$2,500 deductible, 10% co-insurance. You pay S$2,500 + 10% × (50,000 − 2,500) = S$2,500 + S$4,750 = S$7,250 total out of pocket (unless a rider reduces it).