National Day Rally

Its good news for the elderly in Singapore after the rally last night! It seems by next year, those who have pre-existing conditions and the elderly will also be accepted under Medishield Life! Even those who do not believe in insurance and opted out of Medishield (Really? Why would you do that!?) will now be automatically included. 

Medishield have just undergone a revamp March this year and this means that will be another revamp soon. Premiums have almost doubled for somebody age 21 to 30 years old in March this year from 30 plus dollars to $66 per year this March. And by the time you have about $2,000 in your medisave, the interest you earn from it will more or less cover the premium for your medishield. But this is for now. With the increase of coverage to cover for pre-existing conditions and coverage for life there maybe another round of premium increase next year but we still do not have to worry too much because I am sure even when we are old, the maximum cap on our medisave with the current interest rate of 4%, it still covers the premiums for Medishield.

Cap for Medisave Contribution = $38,500

Interest per year for Medisave = $1,540

For individual who is 51-60 years old, premiums for Medishield = $345.

Interest will nicely pay for the premiums with change. 

But of course there are many limitations in Medishield, if you are looking at staying in wards higher than B2 or C wards. 

If you are Singaporean and do not mind staying in a B2 ward or C ward you get 100% subsidy. If you are Permanent Resident here. Your subsidy is 44% and 58% respectively. If you are a foreigner on Medishield you only get 20% and 35% subsidy. 

If you decided to go with a private hospital you will only be subsidised 35%. 

In todays Straits Times (19 Aug 2013) article with the title 'Universal, Compulsory and for Life.' One health economist said:

'MediShield Life plugs the gaps in MediShield by extending basic cover to all. This is enough for the bulk of the population, so he is in favour of moving away from integrated shield plans provided by private insurers.

The important thing, he said, is to ensure "everybody is perceived not to be denied or deprived relative to other people".

This is a very dangerous statement to make as it is very irresponsible. My worry is again, a reliance on the Government to do everything for Singaporeans. One particular report on therealsingapore.com today was a 30 plus year old man who has an 8cm gash on his arm and fainted while waiting for treatment in A&E at CGH. They waited seven hours yet no doc to see them. They ask for transfer but no ambulance for them to use. The article is written by one who once again is pleading with the government to do something...................

Do something for yourself! Get a private integrated shield plan with the rider. Most plans come with ambulance fee covered. If you got the private hospital plan, go straight to a private hospital and get it done in 15 mins. You have a choice! The government have done that for you and given you that choice. Take it. But if you chose not to do it then its your fault and nobody elses's.

And to the health economist, your statement have just planted the idea that the government will do all.... they don't. Once again, what you do today echoes in eternity.

And if you are a Permanent Resident reading this, all the more you should get a private integrated shield plan. Ask your financial adviser about it. If you do not have one email me tngjinyau@gmail.com

The Only Constant Is Change

After joining the financial industry the quote that 'the only constant is change' became so much more apparent. Not only are there changes in the organisation, the change in the industry is also very fast paced. In 2000 when I joined the industry 2 paper was all I needed to take Certificate in Life Insurance & Investment Linked Policies. As the years went by, they introduced Financial Needs Analysis then Health Insurance. It is now renamed to M9, M5, M8, HI and the most recent addition to the slew of exam papers an adviser has to take, M9A and M8A. 

And those was just the papers to take. The industry also went through many changes with its regulations. CPF monies allowed to invest from zero dollar, then back to having minimum before one can invest. Then you have changes to customer's expectations that result in changes in products. Then there is inflation, economic change, product changes, moving from paper proposal to laptops, changes in company policies, changes to our title...

But this is part and parcel of life. Change. Adapt or get left behind. I started to adapt and move with the times. I embraced changes, adopted technology as it comes along. Today I am even more savvy technologically then many of my Gen Y colleagues. 

Our products have expanded. I remembered in 2000. Total product 10 fingers can count. Today, fingers and toes add together also cannot count the plans available. Now there are high net worth products, mass market products, participating products, non participating products, personal accident, Health and Surgical products. Each of these products serve a different purpose, suitable for different people. 

Come first March is another change: Medishield. Its been reported in the papers. There will be an increase in coverage and therefore an increase in premiums. There will also be an increase in deductible, which means an increase in out of pocket expenses. In 2005, Medishield have been integrated with Private Shield Plans to give members more comprehensive coverage.

With private integrated shield plans any out of pocket expenses can be defrayed with riders. My advice to all my client is that the very first thing they must have in their financial portfolio is a shield plan.

I remembered a friend of mine who when approached by me told me that he does not believe in insurance. Did his investment planning and told him if he don't want to talk about anything else just get a hospitalisation plan first. My rationale then was anyway its from Medisave. Was I glad he did it. He is now diagnose with Hep B and he will definitely get excluded if he tried to get it now.

I have also recently added a rider for another client on his shield plan and he was just warded 2 weeks back. He left the hospital after 2 days and did not pay a single cent, in fact he got paid.

Premiums you pay for a private integrated shield plan? Less than $1 a day from medisave and less than $1 a day for the rider. What can you do with $2 a day??

Are you willing to risk a huge medical bill for just $2 a day. You decide..

See the average bill size here

Want to find out more about financial planning or just want to have more info, email me tngjinyau@gmail.com