Insurance - life? savings component?

[ms_piggy]

I have just started working and thinking about the importance of insurance. You know, you'll worry about your dependants (or even yourself) let's say something happens to you. There are lots of insurance out there, but I am not too sure which one to buy.

I consider the normal life insurance + medical + accidents. This is the basic insurance that I think we should have. But nowadays, insurance companies come out with insurance + savings component, you know... the one that will give you high return ONLY when you pay the installment for about 25 years. If you cant pay halfway, you can only get a fraction of the money that you've put in.

The consideration is that 25 years is a long way and we dont know what might happen in the future. I dont like the idea of putting MY OWN money with somebody just to get a fraction of it if I need it in case of emergency.

I have not talked to any insurance agent before as I want to shop for opinions. Any advice?

 

[makino]

If you have the budget, may want to consider covering life, healthshield, CI and accidents. Esp for healthshield and CI, better get it while you're healthy, or else be prepared to be 'ripped off' with a higher premium or else they will exclude that particular illness.

I know there's a shorter plan from AIA that charges only 8 years of premium for life coverage (up to certain age). I'm not sure whether the plan is still around though, cos the last I heard from my agent is that they have a newer and better plan.

Btw, do beware of certain catches. Eg this N-company's healthshield plan has certain catch which I also didn't know when I took the plan. If you have the option between a better operation procedure and a cheaper but more painful option, this company will advise you to choose the cheaper option and only pay up to the cheaper option's fees, no matter which one you choose in the end.

 

[pepper]

piggy,

better not to buy those with returns, the premium will be higher for lower coverage. invest the money urself is better as it is not transparent how the insurance company invest for u and they can declare low dividends.

if u r concerned about ur dependents, then buy term insurance for life is cheaper for higher cover. Term is sufficient, no need life because by certain time say 20 yrs later ur dependents should be independent already. For health insurance, the earlier u buy the cheaper is the premium and less likely u will have medical problems which they will exclude. So upgrade ur medishield first since it is paid using CPF medisave monies. If u got extra, buy accident (is usually very cheap)and extra medical cover like critical illness which gives one lump sum upon diagnosis.

Talk to my agents and compare the cover and premiums. Also read the fine prints especially for critical illness and medishield as AVIVA and recently AIA pays on as-billed basis instead of hvaing a cap for each component of the hospital bill. Check the deductible also.

 

[powder]

hi Piggy Peggy,

my advice is to always buy Term for critical illness/disability/death/accident coverage. Main issue here is coverage... be prepared to just pay for the coverage and not to confuse it with endowment/savings/investments...

 

[makino]

Yes, term gives a higher coverage, but you also can't get anything back if nothing happens to you throughout your life. It depends on your own preference, whether you can accept this idea. For me, even though term is very popular now, I still prefer some returns.

For CI coverage, if you can afford, better go for it while you're healthy now. For eg, a small *non* cancerous growth in your body can cost you a higher premium if you decide too late.

 

[noxy]

Hi Piggy Peggy,

I too had your problems when I first came out to work. You can try looking through this forum.

http://www.wallstraits.com/community/index.php

Under Non-Stock Personal Finance Issues

They have many many information on what you are asking for.

I'm not trained to give sound financial advice but my personal advice at the moment is take your time to look around. Don't succumb to any pressure tactics used by any insurance agents.

 

[snowflo]

hi,
i'm thinking of moving over to Enhanced IncomeShield.
anyone any view on this product?

 

[makino]

So far, I've not been asked to do any medical check-up when I took on the various types of insurance.

 

[snowflo]

hi yiting,
Enhanced IncomeShield... gd?

 

[cactus_79]

Hi snowflo, I'm with enhanced incomeshield. Presently with Advantage. I'm considering moving up to Preferred. Still trying to decide. At our age, premiums not too high. Still can use medisave to pay premiums until about 50 years old.

 

[yiting]

Hi snowflo,
I've been banned by moderator. I think they feel uncomfortable with me sharing advice and info here. It would have been a different case if I'm working in the F&B / fashion / beauty or any other line... They would have allowed me to share info and advice from my job. I just have to accept that... Help me ask them to allow me back if the info I've given is useful, k? Other than that, I guess I will have to disappear... no point keep trying to come back with different ID.

Just to answer the few questions you've posted. (if you've subscribed to this thread you will get this message, so maybe just help me answer to any others).

These are the comparisons with various companies.

http://www.moh.gov.sg/cmaweb/attachments/publication/36fe3097691I/Comparison_of_IPs_wef_10_Oct_2006_Final.pdf

Enhanced Incomeshield is better than the default Medishield. Usually for shield plans, the first comparison is the reputation and level of strictness of claiming any claims from companies. Some may be reputed to "close one eye" in the sense that certain definations like "Full Day Hospitalisation" can mean 16hr hospitalisation. Some companies are more strict so they stick strictly to Full Day = 24hrs. So reputation of leniency and efficiency is very important. Why I say efficiency is becos this kind of things, cannot wait long. I guess you can understand what I mean without me elaborating.

The rest of the comparisons about shield plans is usually their various claim limits

Two examples:
1. High annual limit, low lifetime limit
2. Low annual limit, high lifetime limit.

Considering the unforeseen, if I fall sick with cancer, I fight a 15years battle with minor operations, choice no.2 will work best with me.

However if I fall sick with cancer/serious accidents, only have one yr to live and need huge major operations, then choice no.1 will work better.

Ultimately, we wouldnt know what we need, until we need it. By then, it's too late to apply for it.

Hi tsukushi

Don't worry. Medical check-ups are not required in all cases. Most times, its only if you've had any unusual medical condition within the past five years. Depending on seriousness of conditions, stuff like backaches (they may exclude all future spinal problem/disability/paralysis), depression (suspect suicidal/self-inflict injury, exclude accidental dismemberments), breathing difficulties (suspect repiratory/lung problem), high-blood, etc etc. List is endless... (I've stated that the scenario I painted above is only based on worse worse scenario.)

I may never get to post here again... so, CIAO!

 

[snowflo]

Hi Yiting,
I'm happy to see u back here!
i guessed as much when i realised your prev posting missing this morning.
it might be becoz u so clearly stated your occupation...
in case u r not aware, there r also members with similar occupation sharing their views in other threads in this forum...

Hey, thank you for sharing your views/info and your perseverance to come back n post again.

 

[snowflo]

Hi Cactus,
i'm currently covered under AIA Healthshield Gold Plan A.
i want very much to move to their newly launched Gold Premier, but am unable to till the next anniversary of my policy... due to computer sys restriction i was told. given today's IT level here, this is so unbelivable.
The Enhanced Incomeshield is very attractive to me, esp with the rider. but that 4 days notice clause... i've told myself to make the final decision b4 the end this mth.

 

[cactus_79]

Hi snowflo, yup, the 4 days notice clause is very worrisome, but personally, I am able to live with that sort of "inconvenience" cos it's not every day that I would be hospitalized (hopefully!) and usually, you would be hospitalised either through A&E (whereby no notice is necessary) or through an outpatient clinic (polyclinic/hospital outpatient/private GP clinic) and the docs there will have to write you a referral letter.. that means hospitalization tends to be abt 1 to 2 weeks... so 4 days is really sufficient. In any case, NTUC cannot refuse to process our claim if we have proof that we alert NTUC to our pending hospitalization as soon as we have been told to admit to hospital right?

 

[snowflo]

hi cactus,
the agent at the ntuc at tampines explained to me that the 4 days is for them to chk whether the hospital the policyholder is seeking treatmt at is truly a hospital.
the supervisor added that period will allow them to chk whether the most expensive specialist/doc has been engaged and whether there's a less expensive alternative.

 

[makino]

And if they find out that you have a less expensive alternative, they will tell you to go for this option. If you don't, they only pay up to the less expensive option. Eg. if you can choose between a knife operation (cheaper) and a laser operation (more expensive, faster recovery), they only compensate you for the amt that will be incurred by knife, even if you choose laser.

snowflo, it was lucky that your agent told you about this 4 days catch. My agent did not even mention about this.

 

[kaye]

tsukushi,
like tat it wont benefit us....
I mean we rather ve a faster recovery than suffering longer...
tat means we ve to pay more for tat

 

[makino]

piggy,
Yeah loh. It's a matter of your perception ultimately. For some people, they just want some coverage for the minimal premium, and there's a high chance that this group of people will opt for the least expensive procedure anyway.

 

[kaye]

yupyup...
cos nobody will wants to top up...
Its only if U buy the ex policy 1st...then U will fully utilize it.
else ppl will tend to choose the cheapest.

 

[kaye]

http://www.maa.com.sg/Lifeinsurance_Riders.htm

This is something that may interest U all...
A compairson of diff co. on policy

 

[jennychua]

Doing up our risk management is impt but first of all we must look at what we need. different people have different requirements. it may seems the same but there still a difference, just like 2 people having headche seeing a doctor. although both may be having headache, but the cause may be different so may require different treatment or medication. hence it's better to talk to an independent financial adviser who will be able to advise you on this. but must also find a reputable company that is big and has a strong platform to help you. i believe no one person can do everything, that's why we are here to seek help from everyone in our wedding preparations. currently, my financial planner is serving a handful of bankers, insurance advisers and many professionals. if you are keen, i may talk to my financial planner to help you fix an appointment with him or alternatively i can pass him your email. hope this help.

 

[twettee]

Hi Sook Er ...

CAn you pass his Email to me too?

 

[jennychua]

you may email to [email protected]

 

[stormfall]

hoping someone here can help me out with medical insurance... my hubby and i applied for ntuc incomeshield a few mths back. He finally got his but mine was not approved because i stated that i had an earlier diagnosis of breast cyst which is benign. they said i can accept the incomeshield but it'll exclude any breast-related diseases, or i can make an appeal and provide medical reports etc.

Does it make sense just to accept incomeshield (with the exclusion clause, which i now regret even bringing it up!) or should i try contacting other medical insurance companies to see if they'll cover me given it's benign? Or do some people just not declare such things when they apply?

sometimes i wonder if honesty is the best policy

 

[powder]

speak to another insurance company... to be honest, i'm not a big fan of ntuc in the first place... i realise tat there's alot of good companies out there...

 

[noxy]

Stormfall, try another company, but chances are, they may put the same exclusion on your policy.

Best to be honest. I have the same problem as you. I declared, got exclusion, but they told me it will be lifted after 5 years

 

[sspl]

hi all, its best to have adequate illness and health coverage instead of savings endwonment plans.. cos wat is wealth witout health? talking abt all shield plans, u have to understad, even with the new AS CHARGED plans, there is stil DEDCUTIBLE & CO INSURANCE an insured has to bear, lets say the dedut and co ins is 10%, in the scenario ur bill is $20000 dur to a long term stay or surgery, 10% of $20000 is already $2000 each excess, so an insured stil has to pay out of her own pocket even thou its as charged plans.. i have alot of calls regarding this clause, ppl may not understand and mistaken it as the plan wil pay it all.. of cos not, cos if it is so, then ins company wil not charged u at so affordable premium and payout huge amt at all claims..

shield plans are here to help for long time illness or huge surgery and all, at then end of the day, riders or stand alone health or hosp plans are stil needed to compliment the shield plans..

 

[blackbear]

Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.

Check this out: http://www.myasiawealth.com/

 

[pigdapan]

hi all

as long as you got any illness is best to declare. For ntuc to provide exclusion or loading (pay extra premium) is actually normal for Insurer to do that.Even after 5 years is still best to declare.
For shield plan you may want to consider Great Eastern or Aviva. I haven really look into NTUC. However, I chose GE coz they got this pregnancy thingy just for females which i found that the rest do not have. My agent told me that GE is the only one in the market that provide this pregnancy benefits. Coz i planning to get marry soon, so it will be good to purchase a plan with pregnancy benefits,as there is a waiting period of nine mths

 

[ianmary]

if any of you wants to know more on insurance related issues, feel free to email me @ [email protected]

If I can help, I will try to explain what I know to you..

 

[pigdapan]

Hi Mary

Are you with any insurer?? May I ask what is the diff between the various shield plan by different company? From what I see, they are more or less the same. But I dun know why my colleague's financial planner is telling her GE Shield plan is not good, and advice her on getting Aviva Shield instead? I am quite confuse with Shield plan here

 

[ianmary]

Hi pig and pan

Yes you are right all the shield plans are more or less the same. Different financial planner have different views however most of the broker will sure recommend the plan which give them the highest commission. There are a few things to look out for. For GE they have maternity benefit which covers pregnancy complications. HOwever its better you check if it is covers the first pregnancy or 2nd pregancy onwards. Most importantly, try to get a shield plan which have already tied up with all the major hospital, currently there are only 4 which is AIA, GE, NTUC and Prudential so that the hospital will bill the insurer directly(more efficient and you don't have to call your agent to submit the claim). MOH website will always update which insurer is the faster payout. For NTUC, I am not sure if you still need the letter of guaranteed. For AVIVA myshield you need the letter of guaranteed but it may not be accepted by the hospital. Hence you may have to pay upfront and claim later. One more last thing for those who had already bought any shield plan before any existing condition, do not switch your shield plan to any other shield plan. I have a chart for all the comparison email me to request thanks.

 

[pigdapan]

Hi Mary!
can email me the chart?
my email is [email protected]
thank you!

 

[vivienpg]

Hi Mary,
I will love to have the chart too. Can email me, thanks!
my email is [email protected]
thank you!

 

[miralyn]

Hi Mary,


Can I have the chart pls? [email protected]

I alrd hav an endowment plan & now comparing as late 20s, feel is time to enhance health coverage plan.

I was reading the previous posting regarding existing illness must declare & coverage will be excluded?

My frien got Hep B and said told me her agent informed even if never declare, Insurance co able to check from a "central database" to verify when she wants to claim. She signed with NTUC and seems if contracted illness & deemed related/can be caused by Hep B=no coverage lor.

Any1 hear/knw abt tis?

 

[frenlyjude]

I think AIA Heathshield Gold Prestige is the best among the rest. It has high annual and lifetime limit of $400,000 and $10M . There is also an extra cancer care benefit of $50,000.

 

[lizzybunny]

Hi Mary,
For health insurance, its always better to declare.I'm a planner myself with GE.I will normally ask my clients to declare everything. Underwriting is also very strict in GE so as to ensure there would be no dispute later on.Those with exclusions implied,client would receive an agreement form , of which when signed then will take effect . Otherwise, case would be considered withdrawn if no reply so there's no harm applying.As for GE supremehealth,additional coverage incl. confinement in community hospital stay,congenital defects and pregnancy related complications.THose who interested to find out more can email me at [email protected]

 

[sugardeal]

hep B carrier without medical record in Singapore still need to declare?

 

[shiilng]

yes. you have to if not they will not cover as it is call pre-existing conditions.

 

[emikochan]

lots of good plans offering "insurance+investment" benefits...this investment is for long term , also gives good returns..i use dbs moneysmart insurance plan..can try http://www.dbs.com/sg/personal/insurance/moneysmart/default.aspx
..investing money not always easy lah..

 

[sttan29]

I'm in the same situation as Piggy, but I'm considering critical illness and/or women's illness cover, and also Medishield. AIA's Complete Critical Cover seems quite comprehensive, but I'm not sure if it covers women's illnesses...

Basically like most people, I'm looking for affordable level premiums with comprehensive coverage. Any kind souls with good recommendations in mind?

 

[corinneteo77]

I am a financial consultant with Prudential. If you need more information, we can discuss further. You can send a email to my email:[email protected] and we can discuss. Non-obligation.

 

[keiyar]

My friend who is an agent told me that we should only start buying saving plan if only we have saved 6 time of our basic pay in cash. However, hospital plan is a must.

 

[City_1301]

I'm in the same situation as Piggy, but I'm considering critical illness and/or women's illness cover, and also Medishield. AIA's Complete Critical Cover seems quite comprehensive, but I'm not sure if it covers women's illnesses...

Basically like most people, I'm looking for affordable level premiums with comprehensive coverage. Any kind souls with good recommendations in mind?

Hi sttan29,

it's been 3 years since you asked about the insurance-related. i do hope you have it sorted out by now.

Otherwise, i suggest u take a look at 2 of Prudential's plans:
Pruearly stage crisis cover http://www.prudential.com.sg/corp/p...ions/protect/PRUearly_stage_crisis_cover.html
and Prusmart Lady II http://www.prudential.com.sg/corp/prudential_en_sg/solutions/protect/PRUsmart_lady.html

it really depends on what is of bigger priority for you when choosing between the two plans or you can have both if your budget allows. otherwise, you can consider the Pruearly stage crisis cover first followed by Prusmart Lady II because the latter covers more specific to women's conditions whereas the former covers up to 70 medical conditions including female-related conditions from its early stage. Of course, there are limitations to each of this plans so let me know if you want to discuss further in case you already have something in place. Or ask anything specific so i can assist.

To add to Medishield, it's good that we all keep the plan and do not opt out. But it's also good where possible, upgrade with a private insurer's shield plan because you can have 100% cover on hospital bills on your non-preexisting conditions. There's other additional benefits too

Best wishes

 

[City_1301]

My friend who is an agent told me that we should only start buying saving plan if only we have saved 6 time of our basic pay in cash. However, hospital plan is a must.

Hi Keiyar,

Your friend is right that we should have enough savings set aside for emergency because we never know when the washing machine is going to break down or if we need to visit a sickly relative overseas. You can choose to save between 3-6 months or even up to a year's income. The other way i like to plan is to set aside not based on income but based on your expenses.

For example if your take home pay is $2500 after CPF deduction, and your monthly expenses is only $2000 of it, you can choose to save total emergency funds of $2000 x 3 months. Or 6 months or 12 months up to you.

But while you are 'growing' your emergency funds, the passing time is always a factor, so don't get carried away and in turn forget to save for your future needs such as your own travel fund, child's education, retirement and others!


Best wishes