Dear Mr. Tan,
I'm looking at increasing and paying for the coverage for my parents. They're both around 70 and are now on Incomeshield standard plan B (capped). I'm hoping to upgrade to either plan A or P and possibly the enhanced plans (as-charged).
REPLYI've done the sums and found the differences in total premiums up to age 85 is large, i.e. an additional $ 37,000 for each parent. While I'd still like to get them the best, I'm thinking whether this is money well spent, relative to the extra benefits they bring. In particular, do one really need the extra benefit of as-charged vs. a capped plan?
Your findings is similar to what I said in my book, Practical Guide on Financial Planning. Medical insurance is very expensive for old people.
There is no need to buy expensive medical insurance for elderly people. They can get good medical attention in subsidised B2 and C ward, which is largely covered by basic Medishield. The quality of care in the subsidised wards is quite good. There is no need for you to pay $37,000 on expensive medical insurance, which provides medical attention that is not much better.
I have also changed to basic Medisheild (without any rider) to reduce the premium cost for my own medical insurance.