Saturday, October 06, 2007

Eldershield

Dear Mr Tan,

Recently I received an ElderShield policy from an insurer (appointed by MOH). I already have my own endowment and life policies. Do you think it is necessary for me to take up the ElderShield and ElderShield Supplement policies?

REPLY:

I have extracted the following information from NTUC Income's website.

* 1 in 12 people is expected to make a claim (due to severe disability)
* the benefit is $400 a month for 60 months (but some elderly people may die before collecting for 60 months).

If you have sufficient savings that can take care of a severe disability, you do not need to buy the Eldershield plan. You can carry the risk on you own. The total payout under Elderhsield is a maximum of $24,000 over 60 months.

If you cannot take the risk of a severe disability, then you need to buy this insurance.

You can read more from this website.

-------------------------
Premium payable at age 40 for 26 years:

Male $174.96
Female $217.76

Total premium paid, plus interest accumulated at 4% to age 80:
Male $13,964
Female $17,376
This is nearly 48% (male) and 60% (female) of the maximum payout of $28,800.
Posted by at

3 comments:

Anonymous said...

Thank you, Mr. Tan for your advice on this thorny issue. This has plaqued many.They are not sure whether to cancel or to keep.We are clearer now.
With this info, i am sure many can make a decision.
I consulted an insurance agent, her advice to me is to keep it because my premium comes from my CPF and not cash, so it is ok to keep in case I might need it one day. My other insurance plans and circumstances were not taken into consideration when she gave this advice.
But CPF is my money too, which I need in the future.CPF money may not be liquid but this does not mean I must squander it on unnecessary insurance
When i thought over I realised and convinced that insurance agents are useless and a bunch of salesmen who only want to sell you something, just like the complains against them in some postings in your blogs.

September 19, 2007 1:10 PM
Anonymous said...

Hi Mr Tan,
Based on past claim records, what % of severely disabled people claimed the max. 60 mths payout ?
What was the 50 percentile of payout mths ?

Thank you,
Raymond

September 21, 2007 4:02 PM
Anonymous said...

Hi Mr Tan,
I am watching closely my CPF money that goes out to pay for insurance premiums.
My medisave is used to pay for the annual premium of a SHIELD plan. This premium increases over the years. There is a cap in which one can use to pay the premium each year. Sooner or later, I will have to use cash to pay for the premiums and I must make sure I can afford to do so, if I sign up for Eldershield.

starlight.

October 07, 2007 9:18 PM

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