Tan Kin Lian's Blog: Private shield plan can cost up to $3,500 per year

Wednesday, October 05, 2005

Private shield plan can cost up to $3,500 per year

Customers compare the coverage offered by private shield plans. They think that the higher coverage, the better the plan.

Here are a few important facts:

- in most cases, the higher coverage is not needed, especially if the patient is treated in the appropriate ward in a restructured hospital.

- a plan that offers a higher coverage can cost up to 60% more in premium.

For example, under plan A, a plan that pays "as charged" will cost $3,500 per year at age 80. NTUC Income offers a similar plan that charges a premium of about $2,100 at age 80, ie $1,400 lower. Our plan pays the same amount for most of the typical hospital stays.

5 comments:

gandoo said...: Hi, If i were to purchase rider plans B , were being hospitalised, bills were below $2000, will i still under claim or the rider plan have to be come with the incomeshield plan too?; October 06, 2005 10:53 PM
Tan Kin Lian said...: This is my reply to Christopher Loh.

Incomeshield plan A and B provides coverage that is adequate for most hospital treatment in the appropriate ward in restructured hospital.

There is no need to buy a higher plan that can cost 50% more in premium. You will be wasting your money. The cost can be quite high, when you get old.

The chance of contracting a very major illness is quite small. Most people already have a critical illness plan, such as the living policy from NTUC Income, that covers illness such as organ transplant, kidney failure, cancer.

We like to offer the appropriate coverage to the general public and keep the premium affordable. We do not want to scare people into buying expensive plans that are not really needed.

If you wish to discuss your statistics with my actuary, you can send an email to me.; October 06, 2005 11:59 PM
Tan Kin Lian said...: Here is my reply to Aiyoyo.

You have to buy the rider with Incomeshield. It will cover bills below $2,000. You can call our hotline or come to our business center.; October 07, 2005 12:00 AM
gandoo said...: Hi Mr Tan, i wish to know more about your success path in your career. =)

1.What is ur previous job before being a CEO of NTUC income?

2.Do you buy lottery?

3. What is your highest education?

4. What are your financial goals when you were at the age of 24?

Thanks for spending time reading and replying my questions as they are appreciated. =); October 07, 2005 8:17 AM
Tan Kin Lian said...: Here is my reply to Christopher Loh.

About 1 million people in Singapore are insured for critical illness plan, such as the Living policy from NTUC Income.

This plan pays out the full sum assured in the event of a major illness, such as cancer, organ transplant, etc.

The sum assured is usually more than adequate to pay for the cost of treatment. This payment is in addition to the coverage provided by Incomeshield plan.

There is no need for people to pay 40% higher premium under a private Shield plan to provide higher coverage for these small proportion of cases.; October 10, 2005 8:07 AM