Enhancing your ElderShield?

[windwaver]

Anybody here buying policy to enhance Eldershield once you hit 40 yr old or for parents?

Just like to hear your opinions on this matter; I'm not an agent, just a consumer.

 

[akwl88]

All Singapore Citizens and Permanent Residents with Medisave accounts are automatically enrolled in ElderShield at the age of 40, unless they opt out of the scheme.

You will be covered by one of the following private insurers appointed by the Ministry of Health to run ElderShield: Aviva, Great Eastern or NTUC Income.

 

[peaceone]

Yes bought the enhance elder shield for lifetime coverage.

 

[windwaver]

All Singapore Citizens and Permanent Residents with Medisave accounts are automatically enrolled in ElderShield at the age of 40, unless they opt out of the scheme.

You will be covered by one of the following private insurers appointed by the Ministry of Health to run ElderShield: Aviva, Great Eastern or NTUC Income.

I know that, I am talking about enhancing Eldershield

 

[windwaver]

Yes bought the enhance elder shield for lifetime coverage.

Which plan did you buy? NTUC? Some critics say it's better to leave it in Medisave and opt out of it.

 

[akwl88]

I know that, I am talking about enhancing Eldershield

http://forums.hardwarezone.com.sg/m...der-shield-vs-ntuc-enhanced-plan-4808034.html

http://forums.hardwarezone.com.sg/money-mind-210/beware-upgrading-eldershield-good-bad-3802047.html

http://forums.hardwarezone.com.sg/money-mind-210/eldershield-comprehensive-plan-4756221-2.html

 

[peaceone]

Which plan did you buy? NTUC? Some critics say it's better to leave it in Medisave and opt out of it.

I upgraded it to monthly $1000 lifetime coverage from ntuc. Forget how much the premium paid. Once you opt out I don't think you r able to get back. Think twice.

 

[windwaver]

http://forums.hardwarezone.com.sg/m...der-shield-vs-ntuc-enhanced-plan-4808034.html

http://forums.hardwarezone.com.sg/money-mind-210/beware-upgrading-eldershield-good-bad-3802047.html

http://forums.hardwarezone.com.sg/money-mind-210/eldershield-comprehensive-plan-4756221-2.html

Yeah, I have read all those but I personally may consider 12 years payout (Aviva) but still thinking of how much payout per month.

 

[FP_IFA]

Yeah, I have read all those but I personally may consider 12 years payout (Aviva) but still thinking of how much payout per month.

You can use up to $600 of medisave to pay for the upgrade. Anything above $600 you have to top up with cash.

 

[windwaver]

You can use up to $600 of medisave to pay for the upgrade. Anything above $600 you have to top up with cash.

Got to be careful because if I am paying medishield for both my parent and myself, not sure if my medisave can last so long if I upgrade eldershield to AWL.

 

[antonpoh]

Let's look at enhance eldershield $400 monthly cash payout.

Now at age 40 you sign up for this. In another 40yrs when you hit 80yo, this $400 could be worth much less.

 

[FP_IFA]

Got to be careful because if I am paying medishield for both my parent and myself, not sure if my medisave can last so long if I upgrade eldershield to AWL.

Thats right. But you also need to know that your medisave is growing at 4% annually. If your medisave now is $40,000, that would be $3,200 on interest alone. So you have to check is that interest amount enough to pay for your parent and your medishield + eldershield cover. If its not enough, then your medisave will start to deplete after you stop contributing.

 

[akwl88]

Thats right. But you also need to know that your medisave is growing at 4% annually. If your medisave now is $40,000, that would be $3,200 on interest alone. So you have to check is that interest amount enough to pay for your parent and your medishield + eldershield cover. If its not enough, then your medisave will start to deplete after you stop contributing.

An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).

 

[limster]

At age 40, you can take a look at your financial situation, if you are successful and have a dividend portfolio giving a few thousand dollars a month, then eldershield is totally unnecessary.

if at age 40, your investment returns are negative, then better get as much insurance as possible, since DIY will lose money.

 

[FP_IFA]

An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).

The extra 1% is not likely to end up on the medisave account when you are retired. The order is RA, then OA then SA and MA so MA is the last. I think to be safe we just assume it is 4% for MA after retirement.

 

[FP_IFA]

At age 40, you can take a look at your financial situation, if you are successful and have a dividend portfolio giving a few thousand dollars a month, then eldershield is totally unnecessary.

if at age 40, your investment returns are negative, then better get as much insurance as possible, since DIY will lose money.

Even if they are successful, a thousand dollars extra is better than 0. Medisave money is stuck in Medisave account anyway. Even if we are half dead, we can't utilize that money to make us feel more comfortable. So why not use it on medishield and eldershield?

But yes the rich has less need of insurance than the poor.

 

[limster]

Even if they are successful, a thousand dollars extra is better than 0.

It doesn't make sense to pay an insurer to insure against an event that I can self-insure. That is why I don't insure my handphone even though there is handphone insurance. Self insurance is cheaper for the dividend investor. Like I said, have to evaluate the success of your investments at age 40. If your investments not going too well, then buy the eldershield. If you are hitting your dividend target, then no need.

Medisave money is stuck in Medisave account anyway.

I can use the medisave money to pay for outpatient treatment / day surgery for illnesses that one is certain to get in old age.

I can also use to medisave to co-pay hospital bills if I do not have a full rider on my integrated plan.

Why should I use medisave money to pay for an insurance policy that is very hard to claim against. In wheelchair, cannot walk, also cannot claim. And when you finally can claim, its $400 for 6 years? My dividend portfolio will give cash for life and I can pass the shares onto my next of kin.

 

[peaceone]

Why should I use medisave money to pay for an insurance policy that is very hard to claim against. In wheelchair, cannot walk, also cannot claim. And when you finally can claim, its $400 for 6 years? My dividend portfolio will give cash for life and I can pass the shares onto my next of kin.

the usual eldershield is $400 for only 6years cycles claim, that's why TS is wondering should he enhanced it by upgrade pay up to approx.12years cycles and have a lifetime more $$$ coverage.

Agreed the wonderful dividend income received yearly but not everyone can stay invest till old. Since my medisave received passive interest yearly too, i use cpf to pay for these and dividend cash can on other things too.

 

[tiny]

All Singapore Citizens and Permanent Residents with Medisave accounts are automatically enrolled in ElderShield at the age of 40, unless they opt out of the scheme.

You will be covered by one of the following private insurers appointed by the Ministry of Health to run ElderShield: Aviva, Great Eastern or NTUC Income.

The automatic covered do not need medical underwriting at age 40?

 

[manyu882]

Just did some quick calculation in excel,

Take interest rate at 0.05%
The break even point For males at age 85, for females at age 81.
Just need to find the statistic of people who fit the criteria of claiming at different age group to know if it is worth it or not.