A Letter of Guarantee (LoG) is an assurance of payment offered by insurers to hospitals, on behalf of a patient, for the portion of the hospital bill covered by insurance.

When you are hospitalised, if your hospital can obtain a letter of guarantee from your insurer, you can reduce the amount of your upfront payment to the hospital.

With effect from July, all AIA policyholders under the Medisave-approved Integrated HealthShield plans can request for an AIA Letter of Guarantee from these restructured hospitals.

  • Alexandra Hospital
  • Changi General Hospital
  • Khoo Teck Puat Hospital
  • National University Hospital
  • Singapore General Hospital
  • Tan Tock Seng Hospital
  • Singapore National Eye Centre

The LoG can be generated instantly and issued by the hospital staff on behalf of AIA, and the hospital may waive the deposit required for the admission.

Processing of Essential benefits with HealthShield Policy

With immediate effect, when HealthShield customers’ claims are received from the medical institutions, if the customer has an Essential rider, AIA will assess and process both the HealthShield and the Essential rider concurrently. What this means is that AIA will settle the cost of the admission/treatment with the medical institution, resulting in a truly paperless, cashless and hassle free settlement.

I am glad that such enhancement finally come true. For years, It has been ridiculous that client has to file manual claim for riders of Medisave-approved Integrated Insurance Plans even when the basic policy has been approved.

I hope other insurers who have not done so will catch up soon.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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