Saturday, October 06, 2007

$5 million cover under a Shield plan

Some Shield plan offers a cover of $5 million. This is a marketing gimmick.

To my knowledge, out of 2 million people who are insured for the past 10 years, nobody has ever accumulated a lifetime bill of more than $300,000. Most of the large bills are probably less than $100,000.

Do not be frightened into buying a Shield plan because you have have to incur $5 million in medical bills. This is not possible.


Anonymous said...

Don't worry, only a couple of shield plans offer a cover of $5 million.

Now shield plans offer unlimited lifetime cover. if you say $5,000,000 is marketing gimmick, then may I know what you think of unlimited cover?

i supposed a product must sure go through some acturies to evaluate the risk before being offered.

is it possible, that you looking at past data, which is outdated, therefore you concluded that it is impossible to have such large bills? how about the future? When we buy shield plans these days, it's lifetime cover you know.

my coffee has gone from 30cts in 1980s to 80cts today, in a mere 27 years.

maybe the last 30 years nobody accumulated more than $300,000 but how sure are you that nobody in the next 30 years will not accumulate a lifetime bill of more than $300,000?

to your credit, you do dispense good advice. but i have a feeling you are looking in the shadows of the past.

Tan Kin Lian said...

The price of coffee goes up 3 times in 30 years.

If medical bills goes up at the same rate, you can wait for 30 years for the largest lifetime medical bill to reach $1 million.

If someone is so sick, he or she will not live much longer to chalk up a larger medical bill.

You do not need $5 million or unlimited cover.

hongjun said...

I agree with Mr Tan.
If medical bill were to chalk up to even 1 million, I would say that's super duper serious and that person should have been dead.


hongjun said...

I know PruShield agents are now trying to promote their PruShield. They specifically point out their proud 5 million cover. What I told them was "I would have being dead if I need that amount of money to pay for my medical bills". Haha...


Thomas Phua's Blog said...

The competition is so tough, that each time Income raised the limit, competitor will go a little higher.

Then Mr Tan, CEO, put the Shield Plan to be unlimited Lifetime coverage and that silence the competitor.

If anyone can incur over $100,000 medical bill in a year, it must be very serious that one may not live long.

Thomas Phua

Anonymous said...

Mr Phua,
If as you said, does it mean that i am overinsured because i have the NTUC Enhanced Incomeshield Advantage plan which has a limit per policy year of $250,000.

Should I change it to the Basic plan which limits to $150,000 per year?

pls refer to
for more details.


Unknown said...

I give you an example: kidney dialysis for a young person who has many years more to live out his/her life..How does e person cope with e super hugh expenses.

Is $250,000 even enough? I say no cause I am a young kidney patient who have experienced both dialysis & transplantation..

With inflation being on e side of medical bills, it is a big worry!

Anonymous said...

Sure , you want the best of everything but make sure you don't over focus on one area and neglect other areas and if you can afford.
Does everyone need to take up the highest plan, the most expensive plan,?

Thomas Phua's Blog said...

Whatever level of plan one needs depend on lifestyle.

Many parents took Plan Basic and come to their children, they insure them on Plan Prefered.

Reason being more parents are sending their children to private hospital.

- Thomas Phua

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