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Understanding Your Private Health/Medical Insurance Scheme

For the last few days, there have been quite a few Clients who have been asking me about the idea of getting a Private Health Insurance Plan and if it’s feasible to do so.

I appreciate their interest in getting a health insurance plan and as I have shared in my previous post on the basic fundamentals of Financial Planning – getting a health insurance plan is a must-must to take care of huge medical bills, on top of a Critical Illness Protection Plan.

Why Is A Health/Medical Insurance Scheme So Important?

To put in simple terms to understand, if there’s a hospital bill of $100,000 today right in front of you, would you

  • Want to take care of this bill 100% on your own accord or
  • Split this bill among your family members (in equal shares and hurt each other feelings…) or
  • Have a Health Insurance Plan that require you to pay out only $12,700 (assuming $3,000 deductible and 10% co-insurance) and have the rest of $87,300 taken care of by the Plan?

If I am you, I would rather have a Health Insurance Plan to take care and even if I do have to split the $12,700 among my family members, it’s easier to do so now!

But Hey Hold On… Does This Medical Bill Of $100,000 Really Exist?

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Watch Out For Your Credit Card Loans And Outstanding Debts

Are you currently having a loan? It can be of any type – Credit Cards, Policy Loan, Student Loan, Car Loan as long as you are owing money.

And are you keeping watch of the compounding interest rate on those outstanding loans, especially those that charge you 5% and above? If you are not doing so, it’s better to wake up, dig out those accounts and clear as much as possible!

Reason being that Compounding Interest Rate can be both an Angel or a Devil working for you!

Why Such A Serious Note?

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You Are Unhealthy For Your Insurance… What Happen Now? Part 2 of 2

In the last post, I have written the type of loading and exclusion you may be getting if you have health issues like Weight Problem, High Blood Pressure and High Cholesterol Levels. I have also written some simple guide to help you to ace (sort of…) the medical checks so that you can get the insurance coverage you need.

How are you finding it? Good? Useful?

If you have not read it, this is the link again and hope that you will find it to your benefit >> You Are Unhealthy For Your Insurance… What Happen Now? Part 1 of 2

And in this concluding post, I will be giving you a few more scenarios and also a simple guide to help ace that medical check. Enjoy…

What Happen When You Are Unhealthy For Your Insurance (Part 2 of 2)

Read More »You Are Unhealthy For Your Insurance… What Happen Now? Part 2 of 2

You Are Unhealthy For Your Insurance… What Happen Now? Part 1 of 2

Congratulations on making that “big” decision to purchase your life and health insurance (after much budgeting and persuasion)!

But… You have became unhealthy for the application so what may happen…

After 4 years of being in this industry, I have came across a wide range of clients who have such health issues, and as their servicing agent, sometimes, its my duty and obligation to help negotiate for better terms so that they can go ahead and get the coverage needed!

Anyway the purpose of this post is not to comment on the negotiations that I have gone through (if you like to know for your own purposes, you can comment here and I will put up on the next post) but to let you have a rough feel that if you have became unhealthy, what will normally happen to your life insurance application when you really need to get one.

And if there is a need to go for a medical check, I will be offering a short guide on how to ace (not really 100% effective) the checks.

What Happen When You Are Unhealthy For Your Insurance (Part 1 of 2)

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Mixed Feelings: Should You Protect The Goose That Lay The Golden Egg Or The Golden Egg Only?

There is a favorite story that Financial Planners will use to show Breadwinners the importance of Income Protection or Whole Life Protection and that will be the story of the Goose that lay the Golden Eggs.

The Background Of The Story And What You Can Relate From It In Today’s Reality

In brief and in comparison to today’s context, this story shares that there is this Special Goose (in comparison, will be similar to a Breadwinner who maintain and sustain a family and reproducing future generation) that lays a Golden Egg each day (in comparison to the Children, who is the future pillar of of the society).

This Golden Egg, in the story, has actually made the owner very rich as the owner can sell the eggs for very good profit. Thus in reality, Children are good and valuable resources to the society as they can contribute their talents and services back.

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Total and Permanent Disability And That Plan Called ElderShield

When you buy any life insurance plan, the basic benefits are that you are covered against Death and Total and Permanent Disability. So do you what does this insurance term – Total and Permanent Disability – mean to you?

The General Definition of Total And Permanent Disability (TPD)

It would practically mean that the loss of a pair of limbs (inclusive of eye sight) and being unable to work continuously for six month and thereafter. This, of course, must be certified by a certified Medical Practitioner. If the definition here differs from what you should know, please do refer to the Product Summary of your life insurance and it’ll be explained there.

The General Exclusion For Total And Permanent Disability

Do you know that, in Singapore, the coverage for TPD will cease the moment you have reached 65 years old whereas the rest of the coverage like Death or against the 30 Critical Illnesses will still continue.

So Is Having The Coverage For TPD Important?

Life is full of uncertainty and you’ll never know when such an unforeseen circumstance like a stroke will hit you to be permanently disabled – you lose your job permanently, loss of income for your family, you are very much alive and there’ll be a definite financial difficulties as long as you are alive.

Therefore, having a coverage for TPD (some insurance companies will pay a lump sum whereas others may pay a certain limit per month or per year) is beneficial in making sure that you have enough financial assistance to take good care of yourself while you are down.

So Why Does Total And Permanent Disability Cease To Continue After Age 65?

This is a very good question that I, myself, do not have an accurate answer. In my personal opinion (I may be wrong) is that, the health risk for people to have Stroke or Alzheimer’s Disease (Total and Permanently Disabled) is tremendously high, which could have a serious financial impact on insurance companies to sustain this risk. Therefore they decide to have this general clause of having it till age 65.

Stroke And Alzheimer’s Disease Are On The Rise, So How Do I Get Myself Covered After Age 65?

The ElderShield Plan

If you are concerned about getting covered after the age of 65, there is an initiative taken by the CPF Board to help take care of Singaporeans in terms of severe disability, that is the Eldershield Plan, which is offered automatically to Singaporeans and PRs who are CPF members and have turned 40 years old.

Read More »Total and Permanent Disability And That Plan Called ElderShield