Getting started with insurance

[xtwis7]

Hello all. Feeling a little lost here, needing advice on insurance.

Currently working in IT, making 100k per annum. Wife is an independent accountant and has no insurance.

Just got married in January this year and moved into a 4-rm flat. Pretty much wiped out my wife and mine's OA account for the downpayment. She has about 30K in Medisave and I have about 9k in Medisave. Have about 30k in cash savings, about 442k in housing loan.

We are planning on having a kid soon. I am not sure of what kind of insurance or policy to get to help with maternity costs such as check ups, delivery and so on.

From work I have employee group insurance from Fullerton. Group maternity coverage up to 25k per year (covers normal delivery, c-section, miscarriage and standard nursing expenses up to 7 days). I am not sure if this is sufficient, should we decide to go to a private hospital or should complications arise?

I did read about IP and it does look like it will help in reducing (un)expected costs with having the baby. Can I use both IP and my work's group employee insurance?

Also curious as to what kind of other insurance policies I should get in terms as I am new to this. I do have the MINDEF group insurance scheme.

Firstly. I think getting yourself a Integrated Shield Plan (ISP) for you and your wife should be the absolute priority. While you do have pretty generous coverage from your company, a group policy won’t be ported over should you ever change jobs. These also not guaranteed renewable unlike your own dedicated ISP. Waiting period for females’ pregnancy complications is at 300 days or 10 months so of course if plans to have kids is on the table, this should be duly noted. Which tier of coverage to get depends on your preferences, difference between B1/A/Private is honestly about having options on the table. Level of care isn’t worse off in a Govt hospital but waiting time is certainly more pleasant at private hospitals.

Secondly, you may want to look at either disability income (DI) or critical illness (CI) because I’m pretty sure that you can’t afford to lose your income due to any disability or illness. DI replaces the loss of your income up to 75% so this ensures cash flow isn’t interrupted allowing you to sustain the fixed payments towards liabilities while CI provides a lump sum which can help to offset your mortgage or for further medical treatment where necessary. If said mortgage is a HDB then HPS doesn’t cover you and your spouse for CI.

I believe anybody young and still employed should have these covered which just sets for a less stressful parenting journey. Take care of yourselves first before taking care of your kid.

 

[the mac 13]

Firstly. I think getting yourself a Integrated Shield Plan (ISP) for you and your wife should be the absolute priority. While you do have pretty generous coverage from your company, a group policy won’t be ported over should you ever change jobs. These also not guaranteed renewable unlike your own dedicated ISP. Waiting period for females’ pregnancy complications is at 300 days or 10 months so of course if plans to have kids is on the table, this should be duly noted. Which tier of coverage to get depends on your preferences, difference between B1/A/Private is honestly about having options on the table. Level of care isn’t worse off in a Govt hospital but waiting time is certainly more pleasant at private hospitals.

Secondly, you may want to look at either disability income (DI) or critical illness (CI) because I’m pretty sure that you can’t afford to lose your income due to any disability or illness. DI replaces the loss of your income up to 75% so this ensures cash flow isn’t interrupted allowing you to sustain the fixed payments towards liabilities while CI provides a lump sum which can help to offset your mortgage or for further medical treatment where necessary. If said mortgage is a HDB then HPS doesn’t cover you and your spouse for CI.

I believe anybody young and still employed should have these covered which just sets for a less stressful parenting journey. Take care of yourselves first before taking care of your kid.

Thank you for your reply!

Still not sure if I should get Private or A, but it's something that I guess I have to do my own research and decide. I guess there's nothing that a government hospital can do that only a private hospital can do? I do wonder if I get private tier, there's nothing wrong with decided to check into an A class government hospital?

One burning question I have is: I ride my bicycle on the road a lot. I don't do crazy cycling like riding on the right lane or jumping on someone's hood, but I always fear that one day some whack job might decide to hit me and hurt me real bad. I guess the bill for such and incident would be covered by ISP?

Also what do you mean by Waiting period for females’ pregnancy complications is at 300 days or 10 months so of course if plans to have kids is on the table, this should be duly noted. Do you mind explaining?

Note: Original post delete because I realised I don't know how to use hardwarezone lol

 

[xtwis7]

Thank you for your reply!

Still not sure if I should get Private or A, but it's something that I guess I have to do my own research and decide. I guess there's nothing that a government hospital can do that only a private hospital can do? I do wonder if I get private tier, there's nothing wrong with decided to check into an A class government hospital?

One burning question I have is: I ride my bicycle on the road a lot. I don't do crazy cycling like riding on the right lane or jumping on someone's hood, but I always fear that one day some whack job might decide to hit me and hurt me real bad. I guess the bill for such and incident would be covered by ISP?

Also what do you mean by Waiting period for females’ pregnancy complications is at 300 days or 10 months so of course if plans to have kids is on the table, this should be duly noted. Do you mind explaining?

Note: Original post delete because I realised I don't know how to use hardwarezone lol

1. Yes you are right about going to a A ward Govt hospital even though you’re covered for Private. The reverse is also possible but you’ll be subject to 70% proration meaning that the maximum the insurer will cover you is 70% before any copayment. Copayment can then be manually claimed against your group insurance policy too.

2. Cycling accidents if serious enough will be covered by the ISP as long as you aren’t breaking any laws while riding. The criteria is that you have to be warded or have a surgery/day surgery or receive medically necessary treatment.

3. This 300 days waiting period means that if the insured is a female and if the plan commences today, should she be already pregnant at this point and if any pregnancy complications arise anytime within this first 300 days period of the policy’s inception, the ISP wouldn’t cover her. Hope this clarifies. Most insurers cover pretty similar complications but there’s some that’s unique like breech delivery which is only by GE which I personally saw the claim for my best friend’s wife when planned natural delivery changed to c-sec as baby’s position was in breech.

 

[reddevil0728]

Still not sure if I should get Private or A, but it's something that I guess I have to do my own research and decide. I guess there's nothing that a government hospital can do that only a private hospital can do? I do wonder if I get private tier, there's nothing wrong with decided to check into an A class government hospital?

Not sure if you realise, should there be any medical emergency, private hospital will send the patient to Government hospital, because only govt A&E has the resources to deal with acute emergency.

and if you are not the sickly type (you probably cannot foreseeable but i doubt u would want to wish it upon yourself to maximise your return), you will be paying for ever increasing high premium for private for ppl to go eat lobster

might as well just pay for government A. and if u really so desire to seek private, the savings from premium that you have been paying less probably more than enough to cover the pro-ration cost.

also if you got company insurance, and if they offer private, you can always go private and claim from there first.

 

[CrashWire]

Still not sure if I should get Private or A, but it's something that I guess I have to do my own research and decide. I guess there's nothing that a government hospital can do that only a private hospital can do? I do wonder if I get private tier, there's nothing wrong with decided to check into an A class government hospital?

If you can afford it, you can get private, then downgrade when you're older and the premiums shoot up. Downgrading won't require additional underwriting, but upgrading would.

Most people here would recommend getting A or B1 though, because those are much more value for money.

 

[reddevil0728]

If you can afford it, you can get private, then downgrade when you're older and the premiums shoot up. Downgrading won't require additional underwriting, but upgrading would.

Most people here would recommend getting A or B1 though, because those are much more value for money.

While that might be available to get private then downgrade, but is it really very thoughtful? I think need to understand the objective and what you want and can accept. I think that’s more important.

 

[the mac 13]

1. Yes you are right about going to a A ward Govt hospital even though you’re covered for Private. The reverse is also possible but you’ll be subject to 70% proration meaning that the maximum the insurer will cover you is 70% before any copayment. Copayment can then be manually claimed against your group insurance policy too.

2. Cycling accidents if serious enough will be covered by the ISP as long as you aren’t breaking any laws while riding. The criteria is that you have to be warded or have a surgery/day surgery or receive medically necessary treatment.

3. This 300 days waiting period means that if the insured is a female and if the plan commences today, should she be already pregnant at this point and if any pregnancy complications arise anytime within this first 300 days period of the policy’s inception, the ISP wouldn’t cover her. Hope this clarifies. Most insurers cover pretty similar complications but there’s some that’s unique like breech delivery which is only by GE which I personally saw the claim for my best friend’s wife when planned natural delivery changed to c-sec as baby’s position was in breech.

Any ISP don't have the 300 day waiting period? Makes it a bit weird to plan for 300 days before thinking of trying for a family

 

[xtwis7]

Any ISP don't have the 300 day waiting period? Makes it a bit weird to plan for 300 days before thinking of trying for a family

If I'm not wrong, this is standard across all insurers. While it can be a bummer, if you are willing to go ahead and try to plan for a family during this 10 months period, as long as the pregnancy complication happens after the 300th day then it's alright, that's if you really want to rush to plan for this just-in-time.

Another major point to note for the child would be only AIA and GE covers as-charged for children congenital illnesses which happen to be detected after policy inception. As parents can apply from the 15th day of birth, if the said congenital condition is diagnosed like a few months later rather than at birth, most other insurers have a 1-2 year waiting period that caps the coverage up to $20k. For AIA and GE, the waiting period has been removed.

You might find this link to be useful. Last updated on 1 Apr 2023. https://www.moh.gov.sg/docs/librari...023/v2-comparison-of-ips---pvt-(apr-2023).pdf

 

[gizmo_toh]

Dear Experts,

I would like to seek your opinions on my insurance coverage on whether it is comprehensive or at least meet the minimum needs.

Currently, I am in my mid 40s, healthy and non-smoker. My insurance consists of the following:
1. Mindef Group Term Life: $500k
2. Group Personal Injury: $100k
3. Group Living Care: $350k
4. Group Living Care Plus: $300k
5. NTUC Enhance IncomeShield Basic with riders.

Can check is it comprehensive enough or do i need to get other protection?

Thanks.

 

[reddevil0728]

Dear Experts,

I would like to seek your opinions on my insurance coverage on whether it is comprehensive or at least meet the minimum needs.

Currently, I am in my mid 40s, healthy and non-smoker. My insurance consists of the following:
1. Mindef Group Term Life: $500k
2. Group Personal Injury: $100k
3. Group Living Care: $350k
4. Group Living Care Plus: $300k
5. NTUC Enhance IncomeShield Basic with riders.

Can check is it comprehensive enough or do i need to get other protection?

Thanks.

Do you have dependants?

 

[gizmo_toh]

Do you have dependants?

Yes, 2 kids

 

[reddevil0728]

do you have careshield life supplement and also disability income insurance?

 

[gizmo_toh]

do you have careshield life supplement and also disability income insurance?

I just have normal CareShield Life from government which i think should be enough. For disability income insurance, yes, i may need to take a look at it.

Just wondering whether do i need additional critical illness insurance if i already have Group Living Care and Group Living Care plus?

 

[reddevil0728]

I just have normal CareShield Life from government which i think should be enough. For disability income insurance, yes, i may need to take a look at it.

Just wondering whether do i need additional critical illness insurance if i already have Group Living Care and Group Living Care plus?

Additional doing you mean additional coverage or another type of CI?

 

[bluerail]

I just have normal CareShield Life from government which i think should be enough. For disability income insurance, yes, i may need to take a look at it.

$600+ per month is enough for you in the event you are unable to care for yourself? Even maid cost more than that.

Just wondering whether do i need additional critical illness insurance if i already have Group Living Care and Group Living Care plus?

The definitions are very limited, you need to check to make sure it is good enough for you. Sum assured also limited, could be the case you need more.

 

[bluerail]

1. Mindef Group Term Life: $500k
2. Group Personal Injury: $100k
3. Group Living Care: $350k
4. Group Living Care Plus: $300k
5. NTUC Enhance IncomeShield Basic with riders.

First off, the numbers look very low for someone with 2 dependent, you can consider maxing them out first if you can, and you should do a thorough needs analysis to figure out how much additional private insurance you need.

For shield plan, you could consider other companies if you can because the coverage from NTUC is just not competitive anymore.

 

[xtwis7]

I just have normal CareShield Life from government which i think should be enough. For disability income insurance, yes, i may need to take a look at it.

Just wondering whether do i need additional critical illness insurance if i already have Group Living Care and Group Living Care plus?

With or without dependents, if one needs to work then one essentially needs disability income. You can either do this by taking up one of the Careshield supplements using up to $600 from your Medisave or even topping up cash further based on your age.

Alternatively, consider a true disability income which is at most going to be 1-2% of your annual income to insure up to 75%. It's a very good leverage and while it doesn't pay out a nice looking lump sum like CI policies, if you do need to claim it's going to be yours and your family's lifesaver.

 

[reddevil0728]

With or without dependents, if one needs to work then one essentially needs disability income. You can either do this by taking up one of the Careshield supplements using up to $600 from your Medisave or even topping up cash further based on your age.

Alternatively, consider a true disability income which is at most going to be 1-2% of your annual income to insure up to 75%. It's a very good leverage and while it doesn't pay out a nice looking lump sum like CI policies, if you do need to claim it's going to be yours and your family's lifesaver.

CSL and DII are for 2 different purpose

 

[xtwis7]

CSL and DII are for 2 different purpose

I know they are fundamentally different but how many consumers seem to conflate CSL as a form of DI also? That’s why many people who are not aware of DII might just go for CSL.

At the very least, someone without any of these 2 will benefit from having either 1. That was my perspective behind the comment.

 

[reddevil0728]

I know they are fundamentally different but how many consumers seem to conflate CSL as a form of DI also? That’s why many people who are not aware of DII might just go for CSL.

At the very least, someone without any of these 2 will benefit from having either 1. That was my perspective behind the comment.

I don’t disagree that ppl might conflate.

hence isn’t it more important to call out and be clear about the difference instead of just perpetuating the narrative?