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Why I regret spending too much on Insurance

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Old 29-12-2017, 01:28 PM   #16
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Got 2 add on for medical insurance:
First one is to cover private hospital.
Second one is to cover coinsurance.

Need to take note.
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Old 29-12-2017, 02:07 PM   #17
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Got 2 add on for medical insurance:
First one is to cover private hospital.
Second one is to cover coinsurance.
Neither is "essential," though. It's important to nail down the most essential insurance first. If you've got some "bells and whistles" and if you have some gaps in essential coverage at the same time, that's not an efficient allocation of limited premium dollars.
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Old 29-12-2017, 02:17 PM   #18
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Even till the day you pass away you will never get your hands on your Medisave. This sum of money is locked up forever until your next of kin inherit it. My Medisave is my 'insurance'.
Oh, I see what you mean here....

....Not exactly. Yes, you should count your (nominated) CPF funds as part of succession assets, akin to pure life insurance. Note: There's no bundled "total and permanent disability" provision with CPF. You have to be clinically dead before your heir(s) receive your leftover CPF assets. Another problem is that medical expenses tend to spike toward the end of a life, so I wouldn't count every Medisave dollar as a guaranteed bequest, especially if you aren't medically well insured.

With those caveats aside, yes, CPF counts. Really any residual savings you can reliably leave to a dependent survivor counts as (pure) life insurance.
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Old 29-12-2017, 02:32 PM   #19
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sad to say the only ones who benefit will be the agent/agency and company.

I share the same sentiments as you buddy, but I went on to even but US dollars policy.
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Old 29-12-2017, 03:21 PM   #20
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It will become essential when you see the bills.

Neither is "essential," though. It's important to nail down the most essential insurance first. If you've got some "bells and whistles" and if you have some gaps in essential coverage at the same time, that's not an efficient allocation of limited premium dollars.
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Old 29-12-2017, 04:00 PM   #21
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Not sure why some people subscribe to the idea of term life insurance until 99 years old. The premiums are super expensive
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Old 29-12-2017, 04:10 PM   #22
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Not sure why some people subscribe to the idea of term life insurance until 99 years old. The premiums are super expensive
Term is cheap so that you can make use of the rest of the $$ to invest and build a good nest... no point buying till 99.
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Old 29-12-2017, 04:15 PM   #23
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Title of the thread should change to "Why I regret spending too much funding my agents' lavish lifestyle."
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Old 29-12-2017, 04:17 PM   #24
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It will become essential when you see the bills.
Shouldn't the bill be covered by Integrated Shield Plan?
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Old 29-12-2017, 04:22 PM   #25
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Title of the thread should change to "Why I regret spending too much funding my agents' lavish lifestyle."
Haha, True.
I have kick started at least the career of 3 of my friends from Manulife, AIA and Great eastern
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Old 29-12-2017, 05:09 PM   #26
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It will become essential when you see the bills.
Private hospital care is not essential in Singapore. It's a luxury, an increasingly expensive one. There's nothing wrong with spending money on insurance or other luxuries, assuming you've nailed down your insurance essentials first.

Public hospital co-pay coverage (i.e. a rider) is not essential either, with the possible exception of the Assist Rider that can pair with NTUC's IncomeShield Enhanced C plan. (Enhanced C has some "too big" holes without the Assist Rider, in my view.) If you're deciding where to spend your next insurance premium dollar, spend it on insurance essentials first, not on an Integrated Shield plan rider (Enhanced C Assist Rider excepted). Then, if you've got some more premium dollars you want to spend, take a look at whether a rider makes sense. If it does, start with the "Saver" or "Lite" rider -- that's perfectly fine.

Shouldn't the bill be covered by Integrated Shield Plan?
Yes, and by visiting public hospitals for your essential hospitalizations, and in the lowest ward class that addresses your needs. If you want a more luxurious medical experience, if you can afford it, and if you've taken care of all your insurance essentials first, go for it!
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Old 29-12-2017, 05:52 PM   #27
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I have two term life plans, enhanced eldershield and integrated shield plan. Just wondering does it makes sense to add Income Hospital Care or add rider to integrated shield plan?
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Old 29-12-2017, 06:07 PM   #28
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Just wondering does it makes sense to add Income Hospital Care or add rider to integrated shield plan?
For the first part, I assume you mean some sort of insurance product that would pay you a daily cash benefit when you're hospitalized. Please correct me if I'm wrong about that assumption.

I would say no to the first option. The second option, an Integrated Shield plan rider, typically offers a daily hospital cash benefit if you voluntarily choose a lower hospital ward than your base Integrated Shield plan covers. (Check the rider details.) I don't think you should choose anything more than a "Saver" or "Lite" or "Assist" rider -- the type of rider that reduces but does not eliminate out-of-pocket costs for covered medical care. "First dollar" coverage is really overkill, in part because you have Medisave, and Medisave can only be used for medical expenses (and for the base Integrated Shield plan, and MediShield Life premiums). So if you've got this bucket of money called Medisave, and if you're then buying a rider that completely eliminates the need to draw from that bucket of money you can only spend on medical care... What? That doesn't make sense to me. So I wouldn't go beyond the Saver/Lite/Assist rider -- the type of rider that still has a deductible, but it's 50% of the normal deductible. And as for the hospital cash benefit, that's a bit silly, but if that interests you then the Saver/Lite/Assist rider offers you that choice when you voluntarily choose a lower hospital ward.

By the way, supplemented ElderShield is pretty good. Instead of the rider you could take a look at whether getting a little DII makes sense. You might do that if you're 40-something (up until early 50s maybe) and want to insure against income loss due to disability. ElderShield helps if you suffer a profound disability, but you might want to put a little DII floor under that if you're still working and expect to work at least a few years more -- and if you want to insure some of that future income potential.

Last edited by BBCWatcher; 29-12-2017 at 06:11 PM..
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Old 29-12-2017, 06:35 PM   #29
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For the first part, I assume you mean some sort of insurance product that would pay you a daily cash benefit when you're hospitalized. Please correct me if I'm wrong about that assumption.
Yes, that is what I understand from the promoter.

"For shield plan it covers your bills in the Hospital but for the Hospital Care Plan we pay the cash directly to you regardless of your bill. As long as we stay in the hospital minimum 24 hrs because of critical illness, infectious diseases, common sickness, major accidents and injuries we pay you $200 everyday upto a maximum of 730 (2yrs) stay in a hospital per accident per illness. Either warded in a government hospital or private we pay the policy holder even overseas. And if warded in ICU because of serious accidents and illness we triple the cash payment to $600 everyday upto 60 days stay in ICU, government or private hospital."
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Old 29-12-2017, 07:17 PM   #30
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For shield plan it covers your bills in the Hospital but for the Hospital Care Plan we pay the cash directly to you regardless of your bill.
OK, so what serious financial problem(s) would this product solve for you that you couldn't reasonably handle on your own?

And what's the cost for this product, by the way?
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