1. What Are Riders for Integrated Shield Plans?
Riders are add-on options for your Integrated Shield Plan (IP) in Singapore, designed to cushion major out-of-pocket costs during hospitalisation.
They typically:
- Cover Deductibles: Riders absorb the initial fixed sum (e.g., typically up to $3,500)
- Remove Co-Insurance: Riders remove 10% share of the bill you’d pay after deductible.
- Apply a 5% Co-payment: You must pay at least 5% of any bill—even with a rider.
Note: Riders are typically payable by cash-only; you cannot use MediSave to pay the premiums.
2. The Real Cost of Riders—And the Impact of Claims Frequency
To provide real perspective, here’s what riders can cost over a typical working adult’s lifetime for private hospital plans in Singapore (from age 25 to 85 = 60 years):
| Rider only | Total out-of-pocket expenses (60 years) | Equivalent per year | Equivalent per month |
|---|---|---|---|
|
Insurer X (Private plan) Rider |
$282,000* |
$4,779 |
$398 |
|
Raffles Shield Private (Key Rider) |
$67,000* |
$1,135 |
$94 |
Note: These calculations do not include future premium hikes. In reality, actual long-term costs may be significantly higher due to medical inflation and insurer adjustments. For example, a 3–5% annual increase could add thousands of dollars more over the 60 years1.
*Rounded off to the nearest thousand.
But What If You’re Hospitalised—How Many Times Might This Happen?
As there is no available national health data exists for projected individual hospitalisation rates, we use reasonable assumptions:
| Scenario | No. of hospitalisations | Frequency (over 60 years) |
|---|---|---|
|
Lower Risk |
5 times |
Every 12 years |
|
Moderate Risk |
10 times |
Every 6 years |
|
Higher Risk |
20 times |
Every 3 years |
3. With & Without Riders: What Would You Pay for a $22,000 Hospital Bill?
Example:
The Ministry of Health (MOH) lists a appendicectomy costing around S$22,000 2 at Raffles Hospital, 1-bedded ward for an average of two days stay in Singapore.
- Without Rider (≤80 years old)3
- Deductible: $3,500
- Co-insurance: 10% × ($22,000 – $3,500) = $1,850
- Total: $3,500 + $1,850 = $5,350 per event
- With Rider (all ages)
- Co-payment: 5% × $22,000 = $1,100 per event
3 Assuming all hospitalisations occur before age 80 and below (deductible remains at $3,500) and occur on separate policy years (deductible restart every policy year) for simplicity.
4. Rider Lifetime Out-of-pocket Expenses: How Much I Need to Pay?
| No. of hospitalisations | No Rider | Insurer X's Rider only | Raffles Shield Private Plan (Key Rider only) |
|---|---|---|---|
|
|
Deductible + 10% co-insurance |
Rider premium + 5% co-pay |
Rider premium + 5% co-pay |
|
5 times |
$26,750 |
$282,000 + $5,500 = $287,500 |
$67,000 + $5,500 = $72,500 |
|
10 times |
$53,500 |
$282,000 + $11,000 = $293,000 |
$67,000 + $11,000 = $78,000 |
|
20 times |
$107,000 |
$282,000 + $22,000 = $304,000 |
$67,000 + $22,000 = $89,000 |
Note: All these calculations are conservative—actual costs depend on various factors such as age (i.e. deductible is higher for age 81 and above), duration of hospital stays, severity of medical conditions and ward type, other out-of-pocket medical expenses etc. Data accurate as of Aug 2025.
5. So...Are Riders Worth It?
TL;DR
- Having No Rider Could be a Better Choice:
- If you’re generally healthy and expect only 5–10 hospitalisations (or even none) in your lifetime, simply paying the deductibles and co-insurance are far cheaper than getting expensive riders.
- For example, Insurer X’s rider could cost you $282,000—many times what you’d actually pay in hospital bills (even before considering future premium hikes).
- However, do note that Rider might have enhanced benefits such as coverage for cancer drug treatment not on the Cancer Drug List (Non-CDL).
- Comparing With Other Insurer:
- Affordable riders like Raffles Shield’s ($67,000) can make financial sense for those seeking peace of mind, especially if you might be hospitalised ~5–10 times.
- The break-even with Raffles Shield Rider is much more attainable than with high-priced options.
- More Prone to Injuries and Having Family Medical History:
- Having a rider might provide more peace of mind for people with higher risk of hospitalisations. Even with 15–20 hospital stays, an expensive rider like Insurer X’s rarely pays off versus those withour riders.
- Raffles Shield Rider becomes cost-effective only for frequent users, especially if you value predictable costs—watch for the break-even point (see chart above).
- Emotional Value Matters:
- For many, the real benefit of a rider is predictability and peace-of-mind—not financial savings.
- Budget carefully, and don’t overpay “just in case” if you are healthy or risk-averse to premium increases.
6. You use Private Hospitals as the example. How about comparing it to Public Hospitals?
Government hospitals (such as Singapore General Hospital, Ward A) have much lower bills—a typical appendicectomy costs ~$8,950 versus ~$22,000 at a private hospital 2. That means the need for a costly rider is even less in the public hospital system, and having no rider becomes the clear winner unless you strongly prefer private care.
7. Conclusion
Riders are designed for peace-of-mind. But financially, they only make sense for frequent hospital users or when the premium is reasonable. Regularly review your plan, shop around, and always take inflation and future premium increases into account.
For those with family risk factors or preference for private healthcare, the premiums may absolutely be worth paying. For budget-conscious and very healthy individuals (i.e. taking good care of health), basic Integrated Shield Plans without riders could suffice. Alternatively, you can look out for cheaper rider that some insurers are providing (i.e. requires 10% co-payment instead of 5% at a cheaper premium).
You can also check out our other health blog articles here!
This article was originally published on 29th August 2025. All information are accurate as of 22th Aug 2025.
Source
- Singapore Ministry of Health Integrated Shield Plan Comparison (2025). https://www.moh.gov.sg/managing-expenses/schemes-and-subsidies/integrated-shield-plans/comparision-of-integrated-shield-plans/)
- MOH: Private Hospital Bill Information – Appendicectomy. https://www.moh.gov.sg/managing-expenses/bills-and-fee-benchmarks/cost-financing/tosp-sf849a-bill-information/
Assumptions
- Lifetime premiums reflect the sum of rider premiums from Age Next Birthday (ANB) 25 to 85, using insurers’ published rates as of August 2025. These figures exclude the IP base plan, MediShield Life component, and other add-on riders (e.g., Cancer Riders).
- The term “rider” here refers only to the standard type that removes the deductible and reduces co-payment to 5%. Alternate riders with higher co-pays and lower premiums are not used.
- As there is no definitive national data, scenarios assume 5, 10, or 20 hospitalisations between ages 25 and 85.
- A $3,500 annual deductible (for ages 80 and below) is used throughout; all hospitalisations are presumed to occur before age 81 for simplicity.
- Hospital bill estimates are based on a private hospital appendicectomy. Actual costs may vary, especially for more complex procedures or hospital stays.
Disclaimer
The blog content and its assumptions have not been reviewed by the Monetary Authority of Singapore.
