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Planning tool · Hospital plan funding

Fund your hospital plan with a payout, for life

Integrated Shield premiums climb steeply with age — and the rider portion must always be paid in cash. One strategy advisers use: set aside a lump sum in an endowment or income plan whose yearly payout pays those premiums for you. This tool tests that idea against your plan’s actual published premiums — the same sourced data as our hospital plan comparison — using one simple assumption: a 4% yearly payout on what you set aside.

Premiums covered untilage 90Gap from age 91
Yearly payout at 4%S$4,000vs cash premium S$184 now → S$11,787 at peak
For lifetime coverageS$127kset aside at a 4% payout, to age 100
Lifetime cash premiumsS$333k66 years of AIA published rates
Paid by MediSave separatelyS$47kS$300/yr now, AWL-capped — this tool only funds the cash portion
Cash premium by age vs your yearly payout premium payout
payout S$4,000/yr3568100

Navy bars are covered years; red bars are where the payout no longer keeps up. Premiums are AIA’s published cash outlay (rider included — riders can’t be paid with MediSave) for a Permanent Resident. The MediSave-payable part of the base premium is excluded — MediSave pays that separately.

This is the simple version.

A fixed 4% payout is a planning assumption — real endowment cash benefits, dividend rates, accumulation years, mid-life top-ups and whether to fund the full premium or just the cash portion all change this picture. Advisers model those on the full calculator.

Speak to an adviser →Advisers: run the full model in AdvisorOS → Calculators → IP Funding

How to read this honestly

  • The premiums are real; the payout is an assumption. Premium bars come from insurer published tables. The 4% payout is a planning assumption — endowment cash benefits and dividends are typically not guaranteed and differ by product.
  • Why cash-only: MediSave (capped by the Additional Withdrawal Limit) already pays part of the base premium. What actually strains retirees is the cash portion — rider plus the overflow — which is what this tool funds.
  • Premiums will change. Insurers reprice IP premiums over time; today’s published table understates what you’ll actually pay decades out. Treat results as a floor, not a ceiling.
  • The full model has more levers — real benefit-illustration payout rates, accumulation years before payouts start, mid-life top-ups, buffer interest and funding the total premium. That’s an adviser conversation.

Quick answers

Can an endowment plan pay for my Integrated Shield premiums for life?Yes, if sized correctly. Because Integrated Shield premiums rise steeply with age while a typical endowment pays a level yearly cash benefit, the payout over-covers premiums in your 40s and 50s and under-covers them in your 80s unless the capital is large enough. The required amount depends on your plan, rider and entry age — for many private-hospital plans it is in the S$150,000–S$400,000 range at a 4% payout assumption.
Why can't MediSave pay my full Integrated Shield premium?MediSave can only pay the base Integrated Shield premium up to the Additional Withdrawal Limit for your age; any base premium above that limit and the entire rider premium must be paid in cash. That cash portion grows fastest in old age, which is why funding it with a payout stream is a common planning strategy.
Is a 4% yearly payout from an endowment realistic?A 4% yearly payout on capital is a common planning assumption, but actual endowment cash benefits and dividends are generally not guaranteed and vary by product and insurer. Always read the policy's official Benefit Illustration — both the guaranteed and illustrated columns — before relying on any payout rate.

Want the full model?

A licensed adviser can run this with your real numbers:

  • Your endowment’s actual Benefit Illustration payout — guaranteed vs illustrated, not a flat 4%
  • Top-up strategies (start smaller, add capital at 45 or 55) and accumulation years before payouts begin
  • Funding the full premium vs the cash portion, and pairing it with your MediSave and retirement plan
Speak to an adviser →

Educational model, not advice and not a product illustration. Hospital-plan premiums are from insurer published tables (see the hospital plan comparison for sources and verification dates) and change over time; payout rates are assumptions, and actual endowment/dividend payouts are generally not guaranteed. Confirm everything against official Benefit Illustrations and a licensed adviser before any decision.