How Best to cover Your Medical Needs?

[Dennis Ng]

a member asked us: "How should one best cover one?s medical needs?

A good way is to combine the following 3 to get maximum coverage while minimizing premiums:

Critical illness cover
Medical Insurance plan using CPF Medisave (can get up to $480,000 lifetime cover) Which has deductible and co-insurance to minimize premiums.
A low ?First dollar? Medical Insurance cover (to help cover the ?deductible? and ?co-insurance? in 2.)
How exactly to ?mix and match? these plans would be best advised by a competent advisor.

What is a Deductible?

Deductible is the minimum amount payable by you upfront (once in each policy year) that will be deducted from the total benefits claimable. Eg. if your medical bill is $10,000 and deductible is $2,500, means you have to pay the first $2,500, only the remaining amount would be claimable.

What is Co-Insurance?

The remaining amount is not payable in full by the Insurer as there is a ?co-insurance? feature. Eg. co-insurance of 15% in above example means of the remaining $7,500, 15% of $7,500 or $1,125 is payable by you. Total bill payable by you is $2,500 plus $1,125 or $3,625 or 36%.

Cheers!

Dennis Ng
http://www.leverageholdings.com - we help you get BEST Deal in Housing Loans, Business Loans and Motor Insurance

[Dennis Ng]

dear dinoshop,

I think it's dangerous to rely on benefits provided by Employer. Why?

1. Can you guarantee this co will be there when you reach age 60?
2. Can you guarantee even if the co is around that you will stay in this co till age 60? If you leave this co to join another co, would you decided not to do so becos Co B can't offer you same benefits?
3. Can you guarantee the co will continue the benefits? I have real case where the employer decided NO longer to provide such benefits while the client due to medical condition cannot upgrade his own Medical insurance.
4. Even 1 to 3 are YES, what happens after age 60? Risk of medical actually rises with age. The older you're the more likely you need medical treatment.

My opinion is get some cover on your own. As to how much, what type of plan to get, that depends on individual situation. You can email to me at dennis@leverageholdings.com to arrange a no-obligation discussion.

[Guest]

dear Ken1,

you can email to me at dennis@leverageholdings.com and we can discuss on your situation in greater detail.

[candy_chia]

Dennis mentioned in Show me the Money, episode 13 that ALL parents should buy Medical insurance for their kid from Newborn.

link: http://video.xin.msn.com/watch​/video/e ... /1gqhdsnhi

My niece who is 14 years, detected with scoliosis (spine curved from side to side) by the school doctor and slant chin, her medical insurance has been rejected and all specialist treatments must be paid with CASH!

It is a financial burden to my sis' family as they are not high income earners and she still have another young 4-years old girl to care for.

[cellobear]

Proper medical cover is a must.

It is one of the best leverage as the hospital is one of the first place if anything more serious than typical illness occur (common cold etc).

I have a ex-colleague whose father went into hospital due to cancer and incurred almost 50K in 2-3 weeks. After that, he immediately covered his own family fully.

Personally, I have covered everyone in my family (2 adults and 2 children) fully (including the co-insurance and deductible) to private hospital. Even though its may be 1xxx K a year, can you think of a better leverage for escalating healthcare?

For children, its an investment into their future. As what candy_chia mentioned, if its not done early, any diagnosis early in their childhood will prevent them from being covered in future. And you are talking about an entire lifespan here.

ch.

[candy_chia]

Below are extracted from other forums, can anyone verify whether these are true:

http://www.mummysg.com/forums/f107/medishield-67319/
16-06-2011 02:49 PM

Do note that NTUC's plan requires you to pay 10% of the deductible (up to $3000/yr) even though you have a rider. That's why its rider is much cheaper than the rest.

For the shield plan, you can pay by CPF and you'll need to play cash for the rider component.



http://forums.hardwarezone.com.sg/showt ... ?t=3401517
15-09-2011, 10:00 PM
aviva doesnt cover non-standard drugs, which is close to 95% of medical bills.

[prospered]

There is no deductible payable if you add on the assist rider, where the insured pays 10% of total claimable amount or $3k (for highest plan) whichever is lower. Can refer to following for illustration:

http://www.income.com.sg/insurance/Assi ... /index.asp

[candy_chia]

Below are comparison of rider (cover both deductible and co-insurance) by AIA HealthShield Gold Max Essential (Plan 1) and Aviva Myshield Plus Plan 1, show a great difference in cash premium paid for AIA rider.

Age AIA Aviva

1 - 18 $240.00 $247.05
19 - 30 $201.20 $247.05
31 - 40 $244.00 $302.45
41 - 45 $295.30 $370.45
46 - 50 $295.30 $384.40
51 - 55 $453.70 $464.95
56 - 60 $659.10 $555.80
61 - 65 $954.40 $780.60
66 - 70 $1,579.30 $1,014.70
71 - 73 $2,063.00 $1,274.25
74 - 75 $2,099.30 $1,389.45
76 - 78 $2,146.40 $1,595.85
79 - 80 $2,146.40 $1,721.40
81 - 83 $2,495.20 $2,064.80
84 - 85 $2,690.90 $2,232.35
86 - 88 $2,815.70 $2,289.95
89 - 90 $2,924.90 $2,496.10
91 - 93 $3,050.40 $2,720.70
94 - 95 $3,233.00 $2,856.75
96 - 98 $3,524.20 $2,999.60
99 - 100 $3,735.50 $3,149.55

AIA Healthshield Gold Max Plan 1 rider is more expensive than Aviva Myshield Plan 1 rider by $6,689.00 from birth till 100 years old.

Note: Above figures are obtained from brochures obtained from my AIA and Aviva agents.

[candy_chia]

Aviva provides 2 different riders options to to cover deductible and co-insurance. Eg. for age 1 to 30, $195 is payable for deductible and $52 is payable for 10% co-insurance under Aviva plan 1

Below are comparison of rider (cover both deductible and co-insurance) by AIA HealthShield Gold Max Essential (Plan 1) and Aviva Myshield Plus Plan 1, show a great difference in cash premium paid for AIA rider.

Age AIA Aviva

1 - 18 $240.00 $247.05
19 - 30 $201.20 $247.05
31 - 40 $244.00 $302.45
41 - 45 $295.30 $370.45
46 - 50 $295.30 $384.40
51 - 55 $453.70 $464.95
56 - 60 $659.10 $555.80
61 - 65 $954.40 $780.60
66 - 70 $1,579.30 $1,014.70
71 - 73 $2,063.00 $1,274.25
74 - 75 $2,099.30 $1,389.45
76 - 78 $2,146.40 $1,595.85
79 - 80 $2,146.40 $1,721.40
81 - 83 $2,495.20 $2,064.80
84 - 85 $2,690.90 $2,232.35
86 - 88 $2,815.70 $2,289.95
89 - 90 $2,924.90 $2,496.10
91 - 93 $3,050.40 $2,720.70
94 - 95 $3,233.00 $2,856.75
96 - 98 $3,524.20 $2,999.60
99 - 100 $3,735.50 $3,149.55

AIA Healthshield Gold Max Plan 1 rider is more expensive than Aviva Myshield Plan 1 rider by $6,689.00 from birth till 100 years old.

Note: Above figures are obtained from brochures obtained from my AIA and Aviva agents.

[wanderful]

Hi candy,

Thank you for sharing the info, im awaiting approval from aviva for my mum's hospitalization plan... am pondering whether to add in the rider for her which i think its a bit ex for her age now 60+. though my agent friend told me its best to get "covered" completely in case something major happen or out-patient surgery which can't be claim when its lower than the Co-insurance.

Aviva provides 2 different riders options to to cover deductible and co-insurance. Eg. for age 1 to 30, $195 is payable for deductible and $52 is payable for 10% co-insurance under Aviva plan 1

Below are comparison of rider (cover both deductible and co-insurance) by AIA HealthShield Gold Max Essential (Plan 1) and Aviva Myshield Plus Plan 1, show a great difference in cash premium paid for AIA rider.

Age AIA Aviva

1 - 18 $240.00 $247.05
19 - 30 $201.20 $247.05
31 - 40 $244.00 $302.45
41 - 45 $295.30 $370.45
46 - 50 $295.30 $384.40
51 - 55 $453.70 $464.95
56 - 60 $659.10 $555.80
61 - 65 $954.40 $780.60
66 - 70 $1,579.30 $1,014.70
71 - 73 $2,063.00 $1,274.25
74 - 75 $2,099.30 $1,389.45
76 - 78 $2,146.40 $1,595.85
79 - 80 $2,146.40 $1,721.40
81 - 83 $2,495.20 $2,064.80
84 - 85 $2,690.90 $2,232.35
86 - 88 $2,815.70 $2,289.95
89 - 90 $2,924.90 $2,496.10
91 - 93 $3,050.40 $2,720.70
94 - 95 $3,233.00 $2,856.75
96 - 98 $3,524.20 $2,999.60
99 - 100 $3,735.50 $3,149.55

AIA Healthshield Gold Max Plan 1 rider is more expensive than Aviva Myshield Plan 1 rider by $6,689.00 from birth till 100 years old.

Note: Above figures are obtained from brochures obtained from my AIA and Aviva agents.

[candy_chia]

Hi wanderful,
Personally, I didn't see the importance of buying riders (cover deductible and co-insurance) for myself or my family until my 76-years old dad was hospitalised due to stroke a few months ago.

As he only has a basic medishield plan from CPF and he doesn't want to deplete the children's medisave, he chooses to settle for C-class ward in government hospital.

Subsequently, he was transferred to a community hospital which is subjected to mean testing of household income, and medisave can be withdraw up to a maximum of $5,000 a year per patient.

Currently, he is undergoing physiotherapy with medisave withdrawal up to $1500 per year per patient.

That's when we realise total coverage (by adding a rider to cover both deductible and co-insurance) is crucial as 10% co-insurance can be quite substantial. Imagine, if the total bill is $100,000, we may need to foot co-insurance of $10,000, in addition to the deductible of $1,000 in C-class ward.

As you mentioned that your mum is in her 60+, assuming she is within the age range of 61 to 65, you could consider at least buy Myshield Plus option A that covers the co-insurance only, annual cash premium is $465.75 instead of paying $780.60 to cover both co-insurance and deductible.

As stated on the brochures, annual deductible will increase by 50% for any insured Person above 80 years old at age next birthday.

Hi candy,

Thank you for sharing the info, im awaiting approval from aviva for my mum's hospitalization plan... am pondering whether to add in the rider for her which i think its a bit ex for her age now 60+. though my agent friend told me its best to get "covered" completely in case something major happen or out-patient surgery which can't be claim when its lower than the Co-insurance.

Aviva provides 2 different riders options to to cover deductible and co-insurance. Eg. for age 1 to 30, $195 is payable for deductible and $52 is payable for 10% co-insurance under Aviva plan 1

Below are comparison of rider (cover both deductible and co-insurance) by AIA HealthShield Gold Max Essential (Plan 1) and Aviva Myshield Plus Plan 1, show a great difference in cash premium paid for AIA rider.

Age AIA Aviva

1 - 18 $240.00 $247.05
19 - 30 $201.20 $247.05
31 - 40 $244.00 $302.45
41 - 45 $295.30 $370.45
46 - 50 $295.30 $384.40
51 - 55 $453.70 $464.95
56 - 60 $659.10 $555.80
61 - 65 $954.40 $780.60
66 - 70 $1,579.30 $1,014.70
71 - 73 $2,063.00 $1,274.25
74 - 75 $2,099.30 $1,389.45
76 - 78 $2,146.40 $1,595.85
79 - 80 $2,146.40 $1,721.40
81 - 83 $2,495.20 $2,064.80
84 - 85 $2,690.90 $2,232.35
86 - 88 $2,815.70 $2,289.95
89 - 90 $2,924.90 $2,496.10
91 - 93 $3,050.40 $2,720.70
94 - 95 $3,233.00 $2,856.75
96 - 98 $3,524.20 $2,999.60
99 - 100 $3,735.50 $3,149.55

AIA Healthshield Gold Max Plan 1 rider is more expensive than Aviva Myshield Plan 1 rider by $6,689.00 from birth till 100 years old.

Note: Above figures are obtained from brochures obtained from my AIA and Aviva agents.

[wanderful]

Hi candy,

Appreciated for your advice and sharing of your personal experience. Your advice definitely helped me in my decision to try to provide an affordable and comprehensive plan for my mum. Thank you very much and good health & speedy recovery to your father.

Hi wanderful,
Personally, I didn't see the importance of buying riders (cover deductible and co-insurance) for myself or my family until my 76-years old dad was hospitalised due to stroke a few months ago.

As he only has a basic medishield plan from CPF and he doesn't want to deplete the children's medisave, he chooses to settle for C-class ward in government hospital.

Subsequently, he was transferred to a community hospital which is subjected to mean testing of household income, and medisave can be withdraw up to a maximum of $5,000 a year per patient.

Currently, he is undergoing physiotherapy with medisave withdrawal up to $1500 per year per patient.

That's when we realise total coverage (by adding a rider to cover both deductible and co-insurance) is crucial as 10% co-insurance can be quite substantial. Imagine, if the total bill is $100,000, we may need to foot co-insurance of $10,000, in addition to the deductible of $1,000 in C-class ward.

As you mentioned that your mum is in her 60+, assuming she is within the age range of 61 to 65, you could consider at least buy Myshield Plus option A that covers the co-insurance only, annual cash premium is $465.75 instead of paying $780.60 to cover both co-insurance and deductible.

As stated on the brochures, annual deductible will increase by 50% for any insured Person above 80 years old at age next birthday.

Hi candy,

Thank you for sharing the info, im awaiting approval from aviva for my mum's hospitalization plan... am pondering whether to add in the rider for her which i think its a bit ex for her age now 60+. though my agent friend told me its best to get "covered" completely in case something major happen or out-patient surgery which can't be claim when its lower than the Co-insurance.

Aviva provides 2 different riders options to to cover deductible and co-insurance. Eg. for age 1 to 30, $195 is payable for deductible and $52 is payable for 10% co-insurance under Aviva plan 1

[randwick]

Hi wanderful,

Just in case you are contemplating switching Medishield provider to take advantage of lower cost of riders, my understanding is that the new provider may not cover pre-existing illnesses, if any. So basically, you don't have much choice but to upgrade within your existing Medishield plan unless you are 100% healthy when you switch over.

However, if you add riders to an existing plan, the provider can't cite the exclusion clause of "pre-existing illness".

You may want to double check before you do any switching between providers.

Can someone in the forum familiar with this issue help to re-confirm?