Thursday, November 15, 2007

Shield plan to supplement employer's medical benefit

Dear Mr Tan

I am working in a Stat Board and am covered under the CCS scheme. The medical bill is taken care of in the proportion of 85% (employer) and 15% (employee). For my dependents, it will be 60% (employer) 40% (employee).

Q1. Should I take a Shield Plan in addition to the medical benefit ?

Reply: I suggest that you and your family take the Medishield plan from CPF, instead of a private Shield plan. The premium should be quite low for young people.

Q2. Should I buy a lower plan, as I do not mind a lower grade ward in Restructured Hospital?

Reply: The MediShield plan from CPF is adequate. It is the lowest cost plan.

Q3. Is the Moratorium Underwriting offered by Aviva is good ?

Reply: Can you give me more details about this feature? I am not familiar with it. More improtantly, will Aviva accept you under the moratorium underwriting when you retire from work and do not have any Shield plan previously?

Q4. How do you compare Aviva's Shield Plan which offer free cover for children if both parents are insured with them, as compared to that offered by NTUC Income's and say Prudential ?

Reply: I do not have details about these covers. Generally, I find that there is no need for the parent to buy a private Shield plan, if they are covered by their employer.

Q5. The CCS medical benefit will not go with me when I leave service with the Stat Board. I need a personal medical plan to take care of the uncertainty.

Reply: If you have a Medishield plan, it will cover you when you leave your current employer. If you are healthy, you can upgrade to a more expensive plan at that time. If not, you can continue with your Medishield plan. Medishield covers B2 ward and is quite acceptable for most people, even for me.

Q6. If I have my own Shield Plan, should I request to convert to the MSO medical scheme where employer pays me a certain % of my salary as medical benefit ?

Reply: It is a good idea to convert to the MSO medical scheme. How much is the additional contribution to the CPF by the employer? I hope that this is an adequate sum.
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2 comments:

Anonymous said...

Hi Mr Tan, I wish u can read the newspaper article on Sunday Times dated 4thNov about how a guy lost 40yrs of hard earned medisave funds just because he wants to save on the premiums on a private shield plan.

November 15, 2007 1:35 PM
Thomas Phua's Blog said...

The Shield Plan whether Medishield or private shield is good to compliment the employer's medical benefit as in CCS and in MSO, one has no hospitalisation benefit at all.

There need to be clear understanding of the difference.

One can assume they do not need any Shield Plan.

But if one is too sick and then got medically boarded out, who wil take care of the medical needs?

Take Shield Plan as a backup.

- Thomas Phua

November 15, 2007 6:16 PM

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