Integrated Shield Plans in Singapore can lapse if MediSave limits are exceeded without notice.

Learn how to prevent this from happening to your parents.

A Silent Danger in IP Payments

Integrated Shield Plans (IPs) are one of the most common types of hospitalization insurance in Singapore.

These plans combine two components:

• MediShield Life: the basic government-provided coverage for B2/C wards in public hospitals.
• Additional private insurance: an optional upgrade provided by private insurers to cover A/B1 wards or private hospitals.

Premiums for IPs can be partially or fully paid using MediSave, depending on age and the Additional Withdrawal Limits (AWLs).

Now, here’s what happened in one family that served as a wake-up call.

Real Story: Policy Lapse Due to a Minor Oversight

Parents, both in their early 60s, have long had IPs from a well-known private insurer.

For years, the annual premiums were comfortably within the MediSave withdrawal limits, and payments went through automatically, so much so that they hardly thought about them.

But once they crossed age 63, the premiums exceeded the MediSave cap, and a small spillover (about S$100+) had to be paid in cash or via GIRO.

Unfortunately, the only notification was a physical letter, which they never received.

No email was sent, because the parents didn’t have one listed on their profile.

And since they’re not tech-savvy and cautious of SMS scams, the SMS notification was ignored.

Eventually, a letter arrived saying the policies had lapsed due to non-payment.

Thankfully, after a visit to the insurer’s office and explaining the situation, they managed to restore the policies. But it easily could have gone the other way.

Lessons Learned the Hard Way

1. Set Up Digital Notifications: Even If It Means Using Your Own Email

Many elderly parents don’t check emails or texts, or don’t have access to them.

Register your own email and mobile number to receive notifications on their behalf through the insurer’s portal.

2. Ensure You Have an Active, Reliable Agent

My parents’ original agent resigned, and the new one never flagged the issue.

Having a dependable agent can ensure someone is looking out for your parents’ interests.

3. Remember: MediSave Has Limits

The AWLs for IP premiums vary by age group.

For many years, everything may be covered by MediSave, but once the premium exceeds the limit, the excess must be paid by other means.

This tiny gap is what caused the policy lapse.

4. Don’t Let “Auto-Pilot” Coverage Fool You

After years of seamless MediSave deductions, it’s easy to forget the policy exists, until something goes wrong.

5. A Lapsed Policy Means New Medical Underwriting

If the policy lapses, the insured may need to undergo fresh medical underwriting.

This could result in higher premiums, exclusions, or even rejection, especially if any health conditions have emerged since the original policy was bought.

The Medisave Limit: Know When It’s Not Enough

To understand when MediSave alone may no longer cover the full premium, refer to the Additional Withdrawal Limits (AWLs) table here and the premiums payable for each policy.

Conclusion: Small Gaps, Big Consequences

Many families assume their parents’ IPs are on auto-pilot, safely paid by MediSave each year.

But a S$100 oversight, a missed letter, or an outdated contact could result in policy lapse and losing crucial coverage built up over years.

For young adults supporting elderly parents, take a few proactive steps:

• Register your email/number for alerts.
• Track premium notices, even if they’re set to auto-pay.
• Maintain contact with the agent.
• Log in to their insurer’s portal every 6–12 months.

Because when it comes to policy coverage, losing it and trying to get it back later is far more painful, and expensive than keeping it active.