If you have yet to notice… premiums for most (or all) private medical shield plans have increased along with the introduction of new benefits under… Read More »Private Shield Plans’ Premiums Have Increased – What To Do About It?
This is true and sad!
I just met up with a client who is urgently interested to get a medical insurance plan because the company is offering some form of cash rebates (as a form of encouragement) when any of their employees decide to “upgrade” themselves.
The outcome is that I still went ahead with the application because the client does need that medical insurance because he does not even have the basic medishield plan under the CPF Board. This is despite the fact that the client still feels that it’s not a must to have that medical insurance because he is still young and that nothing will ever happened!
But I do hope that after my fair bit of explanation and persuasion, the client will still hold on to that insurance after the rebate is given…
If You Belong To This Category Of People…
There is nothing wrong if you belong to this category of people and to enjoy the rebates from the company. But as a Financial Planner, I do wish to highlight the rationale behind the company’s decision to offer the rebates and the importance of getting yourself well-covered adequately and early.
Rationale Behind The Rebates
There are still many people who are unaware of the importance of doing a proper Financial Planning and getting themselves covered adequately under an insurance plan. Therefore the rationale behind the rebates is to encourage their employees to be actively involved in knowing what they are covered and how to get covered.
This is precisely what happened to this client. He does not even know what are the insurance plans that he has till date. He even got mixed up that his Dependent Protection Scheme (DPS) has always been his Medishield Plan.
Because of this rebate, he decides to look for me as his Financial Planner and has all his insurance plans reviewed. Though there’s no financial needs analysis done for him, at least at that meeting, he does got himself covered under a proper medical insurance (which I believe is a must-have for everybody, irregardless of how much you do not trust insurance)!
There’s Certain Level Of Importance Behind An Insurance Plan
I just met up with a Client who came back to Singapore after 10 years of staying and working in the USA.
The purpose of the meet up is to recommend a Private Medical Insurance and any possible Supplementary Benefits that can be added.
How Singapore’s Medical System And the USA’s Medical System Differ
I had a good chance to understand the difference between the medical health system in the USA and Singapore. And what my Client has shared is quite shocking! And here are some of it, though I must still say that the accuracy of what I will be sharing may not be the whole truth:
– The Charge To Call For An Ambulance In The States Is $500 Per Trip
(image courtesy from sxc.hu)
Yes, you are reading this right! If there’s any emergency that you really need to call for an ambulance to fetch, be prepared to pay $500!
And if you are thinking that this ambulance will fetch you to the best hospital around, guess again. These ambulance services will still fetch you to the nearest hospital near your residence. If you stay just 30 minutes to the hospital, this $500 is a huge price to pay! This is why my Client says that most people in the States have to think twice before calling an ambulance.
They do have Medical Insurance Plans to cover for the ambulance services but you have to read the second last Pointer to understand that having a medical insurance plan will not make much difference.
– To Call For An Ambulance In Singapore Ranges From $35 to $75 per Trip
Over the last few months, I had met up with a few clients and they shared with me that they see no reasons for them to upgrade their MediShield plans and they are adequately covered.
And I took the initiative to go through with them what they are being covered and conclusion is that most of them do not really know what they are covered.
So instead of promoting why they should upgrade their current coverage, I would rather let them know what they are being covered and let them decide whether to upgrade. If you are one of those who know that you have a MediShield Plan but do not what you are being covered, this post will give you a clearer picture!
Direct Links To Some Of The Common Questions Asked About MediShield
Understanding The Benefits Under MediShield In Parts
So what are these Figures? Basically they are the daily limits. Medishield do not really limit you to any hospital type and ward (but in reality, it’s around Ward B2 and C), so if there’s any hospitalization involved, you have to check out with the Hospital the Daily Inpatient and Miscellaneous Charges for your Ward.
If it’s normal ward and $450 per day and below, this amount will be added up with the rest of the charges and summed up against the Deductible.
If it’s more than $450 per day, e.g. $500 per day, you have to take to account that you need to pay the difference of ($500 – $450 = $50 per day) whereas the rest of the $450 fall against the Deductible.
And if there’s a Surgery Involved…
Have you asked yourself this question before – Are people around you living longer or shorter?
If you do not have an answer or do not wish to answer this, my suggestion is that you flip through the Straits Time and just have a glimpse at the Obituary Page. You do not have to understand in details but just have a rough feel at the age of people passing on…
My personal opinion is that the answers to the above are both a yes! And the point that I want to bring across is – Have You Planned for both situations?
What Happened When You Live Too Long…
If you have just started work, around the age of 25 and holding a monthly salary of around $2,500 (Gross, before CPF contribution, bringing home around $2000) onwards, then you would love to appreciate this post as I will be sharing with you on how to plan well (coverage in almost every aspect) with just 10% of your monthly “bring-home” income ($200/month).
Note: If you are finding it hard to set aside this 10%, please read my Financial Planning Tip #1 – Paying Yourself First…
Note #2: The plans discussed below are mostly offered by the Insurance Company that I am representing and should not be served as a direct guide. Any queries, please do contact your Financial Planner.
How To Plan With $200/month?
The premiums are derived based on a Male, age 25, and a non-smoker. Rates for Female may differ accordingly.
1. Medical Insurance (Compulsory) With Rider (Optional)