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?
Do you know that if one is to be admitted into hospital… it’s not always a straight forward process and there are many paper work… Read More »One Benefit Of Getting Private Health Insurance Plans – The Letter Of Guarantee
It was two days ago that I received an email comment on one of my earlier posts on the topic of Dependants’ Protection Scheme (DPS) and in it I was asked to provide some advice on why a passed-on family member may not be covered by DPS when it’s obvious that there’s enough CPF money in the account…. and there’s been so much confusion/unhappiness that the family is wondering if they are still able to make claims from it and if so… how can they do so…
What Is Dependants’ Protection Scheme Or DPS?
(As quoted from the CPF Board website) The Dependants’ Protection Scheme (DPS) is an affordable term insurance scheme that provides insured members and their families with some money to get through the first few years should the insured members become permanently incapacitated or pass away.
And for most of its members, they use the money in their CPF-OA account to service the yearly premium. The deduction is usually set to automatic but there’s the usual yearly reminder that the annual premium is due and pending for deduction at a certain date. Insured members are also reminded to make sure that there’s enough money left in the CPF-OA for premium deductions…
If there’s really the case whereby the insured member has no enough money in the CPF-OA account, there will be a letter that’s being sent to notify about the lack of funds and also the alternative to top up the difference with cash at one of the designated Insurance Companies.
Should the insured member forget to make the payment after the grace period, the DPS plan will usually be terminated and an official letter will normally be mailed out to notify as well…
So Why Is It Important To Understand What’s Mentioned Above For DPS?
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…
In my field of doing financial planning with clients, one of my duties is to have a discussion with me asking questions (on the emotional side) and have the clients realized the importance of doing a financial planning.
One of the area that you need to look into is on your Critical Illness Protection.
Many people may be just relying on their Medisave and Medishield Schemes to pay the costs of their medical treatment (the number #1 killer in Singapore is Cancer). However, you should know that Medisave and Medishield have their daily limits and the available quantum may just be not enough to pay for the cost of prolonged hospital treatment or a major surgery.
If you are curious to know what is Medisave and Medishield all about, here is a list of useful links:
- List of Benefits and Limits Of Medishield (a .pdf file)
- Explore everything you need to know for your Medisave and Medishield
As such, you may need to have other source of funds to help pay for this kind of medical expenses – both for you and your immediate family members.
Another reason is that unlike death, being stricken with a Critical Illness may present to you a long-term financial strain. Think of this, beside being have to endure a significant initial and ongoing costs of treatment, you (as an income earner) will need to have some form of protection against the issue of a loss of income as you will probably by unable to work during this prolonged period of recuperation.
Therefore are you ready to understand more of yourself in terms of Critical Illness Protection, to really see if you need to start planning or to enhance?