Enhanced MediShield Plan + Critical Illness advice

[freespiritsy]

You know the conclusion already.
If you can predict your health's future, buy until age 65. Otherwise, buy beyond age 65.
You cannot be buying only one plan to cater to all you concerns.
It is impossible.

Split up your concerns (in dollar value) over the different stages/ages of your life, and check what insurance policies can cover those concerns.
Initial discussions should omit budget constraints, otherwise you hinder proper financial planning. Discuss and plan like there is absolutely no budget constraints.
Once you know exactly what coverages and how much of the benefits you need, input the budget constraints and purchase within affordability.

I will consider a policy beyond 65 yrs as nobody can play GOD as you've rightly pointed out. And as per your advice, I will make my decision based on objectives and having done that, I will then incorporate the $ portion to see if it makes sense based on affordability. tks Accesscode!

 

[freespiritsy]

Hi freespiritsy, would like to clarify.. Aviva MyShield and MyShield Plus pays for All Hospitalisation cost, regardless if is accidental or due to illnesses.

If you are referring to the term plan, then it will be true. There are many individuals who get more than 2 critical illness plan. Some that are life time, while some are shorter period of time.

For example, Mr Tan purchased 3 policies with $100,000 critical illness coverage. Fer years later, he contracted a critical illness and wish to make a claim. Which of the following would you suggest.

1) To claim only 1 of the 3 policies, keeping the balance 2 for future claims on other critical illness
2) To claim 2 of the 3 policies, keeping the balance 1 for future claim on other critical illness
3) To claim all the 3 policies, and save some away for rainy days

Which of the 3 actions you feel that you will take?

tks for painting these few scenarios Kheetat. The novice in me will consider taking (1) upfront and having thought it through, it makes sense to pursue (3) or better yet, just buy 1 policy but with higher amount insured

 

[freespiritsy]

Some true stories to share..

She still owes hospital $167,000
http://health.asiaone.com/Health/News/Story/A1Story20090515-141667.html

From too ill to move, to too big a bill
http://www.asiaone.com/Health/News/Story/A1Story20080903-85565.html

tks for sharing these real life 'sad' egs ...it goes to show we need to live responsibly for both ourselves and loved ones and be insured based on one's affordability with at least minimum coverage. One also needs to be discerned enough to transfer loved one from private hospital to restructured hospital at the earliest as not everyone can afford to be insured at sum of $500K or more

 

[Kheetat]

I will consider a policy beyond 65 yrs as nobody can play GOD as you've rightly pointed out. And as per your advice, I will make my decision based on objectives and having done that, I will then incorporate the $ portion to see if it makes sense based on affordability. tks Accesscode!

tks for painting these few scenarios Kheetat. The novice in me will consider taking (1) upfront and having thought it through, it makes sense to pursue (3) or better yet, just buy 1 policy but with higher amount insured

Assuming that you pursue option (3) and a $300,000 Sum Assured policy beyond 65 years old, the monthly premium plan could potentially cost you at least $300/month (plus minus depending on the types of plan).

Alternatively, if you pursue option (3) with 3 $100,000 Sum Assured policy with different policy years (till 65, till 75 and till 99), the monthly premium could cost much lesser.

p/s. above is just an example and is based on rough estimation.

 

[freespiritsy]

Assuming that you pursue option (3) and a $300,000 Sum Assured policy beyond 65 years old, the monthly premium plan could potentially cost you at least $300/month (plus minus depending on the types of plan).

Alternatively, if you pursue option (3) with 3 $100,000 Sum Assured policy with different policy years (till 65, till 75 and till 99), the monthly premium could cost much lesser.

p/s. above is just an example and is based on rough estimation.

noted Kheetat. So if I were looking at a $300K sum assured, I will pay less premium if I get 3 policies of $100K sum assured rather than 1 policy of $300K sum assured. If I prefer a particular insurance company, I should then get 3 policies of $100K from 1 agency rather than from 3 separate agencies right, unless there is merit in the latter which I might not know of? tks!

 

[Kheetat]

noted Kheetat. So if I were looking at a $300K sum assured, I will pay less premium if I get 3 policies of $100K sum assured rather than 1 policy of $300K sum assured. If I prefer a particular insurance company, I should then get 3 policies of $100K from 1 agency rather than from 3 separate agencies right, unless there is merit in the latter which I might not know of? tks!

Hi freespiritsy, comparing 1 policy of $300k with 3 policy of $100k with the same coverage till age 99, 1 policy of $300k might be cheaper as there are lump sum discounts.

What I meant was getting 3 policy of $100k with different period of coverage (i.e. till 65, till 75 and till 99). This will be something like a wholelife plan with $100k, plus 2 term plans that end at age 65 and 75. These would have save you more premium as comparing to a $300k wholelife.

There is no real merit getting from 3 separate agencies. When policies are issued, the agencies has to fulfill the liability as stated in the contract. Getting from 1 agency, instead reduces confusion and saves administration time for policyowner.

 

[freespiritsy]

Hi freespiritsy, comparing 1 policy of $300k with 3 policy of $100k with the same coverage till age 99, 1 policy of $300k might be cheaper as there are lump sum discounts.

What I meant was getting 3 policy of $100k with different period of coverage (i.e. till 65, till 75 and till 99). This will be something like a wholelife plan with $100k, plus 2 term plans that end at age 65 and 75. These would have save you more premium as comparing to a $300k wholelife.

There is no real merit getting from 3 separate agencies. When policies are issued, the agencies has to fulfill the liability as stated in the contract. Getting from 1 agency, instead reduces confusion and saves administration time for policyowner.

tks for the clarification Kheetat! Just wondering - will you have on hand an estimate of annual premium for the following? I will be turning 39 yrs next wk.

1) a $300K critical illness term policy till age 99
2) wholelife plan for $100K
3) term plan till age 65
4) term plan till age 75

I willl then add up (2) + (3) + (4) and then compare against (1). I will reckon advantage of (2) is I will still get back a sum of money should I not claim for critical illness? If so, could you advise how much money I will get back? Pardon my ignorance, if I were to get a sum of money back, it will be for my husband (if he is still alive) or children (if any) right? Will I be able to terminate the plan say at age 65 or 75 and still get back some money?

What is the merit of wholelife plan for $100K versus term plan for $100K?

Sorry for the barrage of questions.

tks!

 

[Kheetat]

tks for the clarification Kheetat! Just wondering - will you have on hand an estimate of annual premium for the following? I will be turning 39 yrs next wk.

1) a $300K critical illness term policy till age 99
2) wholelife plan for $100K
3) term plan till age 65
4) term plan till age 75

I willl then add up (2) + (3) + (4) and then compare against (1). I will reckon advantage of (2) is I will still get back a sum of money should I not claim for critical illness? If so, could you advise how much money I will get back? Pardon my ignorance, if I were to get a sum of money back, it will be for my husband (if he is still alive) or children (if any) right? Will I be able to terminate the plan say at age 65 or 75 and still get back some money?

What is the merit of wholelife plan for $100K versus term plan for $100K?

Sorry for the barrage of questions.

tks!

Don't worry. Feel free to ask me any questions that you might have.

The annual premiums will be as follows: (I am assuming that you are non-smoker)
1) $300k CI till 99 - $3,501
2) Wholelife plan for $100k - $3,600
3) Term till 65 - $776
4) Term till 75 - $926
5) $300k till 99 - $7200 (I have added in this FYI)

If say you proceed with option 2, you may choose to make a partial withdraw to receive some cash or to fully surrender the plan at any age. Based on projection, the cash value at age 65 and 75 will be about $120k to $190k.

Merit of wholelife $100k
- Accumulates in cash value
- Allows you to stop premium payment for a period of time while still protected
- Allows you to make a partial withdraw if necessary
- Coverage will also include Life and Total Permanent Disability

Merit of Term $100k
- Low cost

 

[freespiritsy]

Don't worry. Feel free to ask me any questions that you might have.

The annual premiums will be as follows: (I am assuming that you are non-smoker)
1) $300k CI till 99 - $3,501
2) Wholelife plan for $100k - $3,600
3) Term till 65 - $776
4) Term till 75 - $926
5) $300k till 99 - $7200 (I have added in this FYI)

If say you proceed with option 2, you may choose to make a partial withdraw to receive some cash or to fully surrender the plan at any age. Based on projection, the cash value at age 65 and 75 will be about $120k to $190k.

Merit of wholelife $100k
- Accumulates in cash value
- Allows you to stop premium payment for a period of time while still protected
- Allows you to make a partial withdraw if necessary
- Coverage will also include Life and Total Permanent Disability

Merit of Term $100k
- Low cost

tks so much for your time Kheetat and detailed explaination!

If I were to buy (3) + (4), it might be cheaper to buy $200K term CI till 75 instead?

If budget is not a problem, I should consider a life plan i.e (2) or (5) along with (3) + (4) as I can still take money back?

Alternatively, I can also consider just buying a life plan i.e. (2) or (5) without a term plan i.e. (3) + (4) right as it will reduce my premiums and I still get to take money back?

tks!

 

[Kheetat]

tks so much for your time Kheetat and detailed explaination!

If I were to buy (3) + (4), it might be cheaper to buy $200K term CI till 75 instead?

If budget is not a problem, I should consider a life plan i.e (2) or (5) along with (3) + (4) as I can still take money back?

Alternatively, I can also consider just buying a life plan i.e. (2) or (5) without a term plan i.e. (3) + (4) right as it will reduce my premiums and I still get to take money back?

tks!

If you were to buy (3) + (4), in the case of critical illness standalone term, there wont be any discounts.

If budget is not a problem, by taking (2) or (5) allows you to take some money back. Regardless if you take up the term (3) or (4), the amount that you can take back will still be the same.

If you take (3) + (4), then you will have a higher Critical Illness Coverage.
If you did not take (3) + (4), then it will reduce your premium and coverage.

But ultimately, the cash value that you have from (2) or (5) is not affected by the term plan (3) + (4)

 

[freespiritsy]

If you were to buy (3) + (4), in the case of critical illness standalone term, there wont be any discounts.

If budget is not a problem, by taking (2) or (5) allows you to take some money back. Regardless if you take up the term (3) or (4), the amount that you can take back will still be the same.

If you take (3) + (4), then you will have a higher Critical Illness Coverage.
If you did not take (3) + (4), then it will reduce your premium and coverage.

But ultimately, the cash value that you have from (2) or (5) is not affected by the term plan (3) + (4)

noted Kheetat! tks much!

 

[freespiritsy]

Where Enhanced MediShield Plan is concerned, I just found out GE Life is superior in that it covers Stem Cell Transplant and Experimental Drugs (critical for Cancer), which all other companies do not cover. Thus I'd think these 2 points alone will warrant for one to go for GE.
Any comments will be appreciated. Tks!

 

[freespiritsy]

If GE do exclude cancer and any of its related complication, then it wouldn't make a big difference I guess.

I believe GE like other companies do include all the critical illnesses and cancer will be one of them. So i don't quite understand what you meant. tks.

 

[Kheetat]

I believe GE like other companies do include all the critical illnesses and cancer will be one of them. So i don't quite understand what you meant. tks.

My apologies. Please ignore my previous post.

We have been discussing on critical illness plan that provides a lump sum payment upon a critical illness. Your sudden mentioned of hospital insurance confused me a little.

Hospitalisation insurance do not pay a lump sum upon diagnosis of a critical illness, like what the term and wholelife plan do.

 

[zhiz22]

Where Enhanced MediShield Plan is concerned, I just found out GE Life is superior in that it covers Stem Cell Transplant and Experimental Drugs (critical for Cancer), which all other companies do not cover. Thus I'd think these 2 points alone will warrant for one to go for GE.
Any comments will be appreciated. Tks!

different insurers have different features so they are no lesser. i wouldnt go for ge.

 

[freespiritsy]

different insurers have different features so they are no lesser. i wouldnt go for ge.

can you advise why you wouldn't go for GE - eg bad experience with GE previously? tks

 

[freespiritsy]

My apologies. Please ignore my previous post.

We have been discussing on critical illness plan that provides a lump sum payment upon a critical illness. Your sudden mentioned of hospital insurance confused me a little.

Hospitalisation insurance do not pay a lump sum upon diagnosis of a critical illness, like what the term and wholelife plan do.

no prob - sorry about confusion Kheetat. So based on what i just said abt GE covering for stem cell transplant and experimental drugs, will you consider GE to be superior to other companies then for Enhanced MediShield? tks

 

[Kheetat]

no prob - sorry about confusion Kheetat. So based on what i just said abt GE covering for stem cell transplant and experimental drugs, will you consider GE to be superior to other companies then for Enhanced MediShield? tks

No worries freespiritsy. I would not conclude if it is superior to other companies because every different company have its own advantages too. I am sure GE do not offer the letter of guarantee and also free cover for children. Other companies may have higher coverage for critical illness also. I am not insured GE that is.

 

[freespiritsy]

No worries freespiritsy. I would not conclude if it is superior to other companies because every different company have its own advantages too. I am sure GE do not offer the letter of guarantee and also free cover for children. Other companies may have higher coverage for critical illness also. I am not insured GE that is.

noted Kheetat. tks! I will evaluate and see which co offers the terms that best meet my needs.

 

[tigerliongoose]

I think sometimes we are too blinded by the marketing curtains of insurance companies. This might be a better way to compare shield plans:

The comparison between Medishield Life vs Private Integrated Shield Plan FAQ