The remaining 30% indicate that they will opt for Private Shield. The key result cited is that Medishield stops at age 85 and Private Shield can be continued beyond age 85. In my view, this is not necessary to worry about this feature because:
- It is likely that Medishield will be extended beyond age 85 at a future date
- Even if Medishield is not available beyond age 85, there is no need for an elderly person beyond age 85 to spend a lot of money for treating a serious illness, as the chance of successful recovery is very low.
It is better to spend the money for a better quality of life at a younger age.
11 comments:
Mr. Tan, Agreed. 95% or more of the people do not survive above 85.My grandpa died at 66, grandma at 84 though grandma (mother side) is still around at 101. So people worry about medical cost after 85 are people that worry that the sun may burn itself up after billion of years.
but insurance agents think otherwise.
They always advise that you must have insurance for life and that is what their sales pitch is...kind of scare tactic. eg. you must have a wholelife critical illness plan or pay off early and be covered for life. But how much one should have for life?
Let's say you are 40 years old now and you need $300k and not $50K , how much is the premium? You sure will cancel it when you stop working and you will lose a lot of money. I have asked an agent about it and his answer is 'just buy $100K , lor". and the figure is plucked from the air. But is $100K enough when I am 70 years old? His answer is "have something better than nothing". My reply is "i better keep my cash and invest it, I might have more than $300K", instead of it going into your pocket and the company.
Hi Mr. Tan,
Recently, my friend (insured under Incomeshield) who was admitted to class B1 ward at TTSH for the treatment of prostat enlargement and high PSA reading. He was discouraged by the TTSH to change the ward to class B2 unless he did not want to be treated by the same specialist who was recomended by his own GP.
Is it an disadvantage if the patients feel more comfortable with their own choice of doctors/specialists? For class B1 ward and above, there is NO such restriction as explained by the hospital staff.
Kindly clarify.
Reply to Michael13
If the patient insist on being treated by a specific doctor, then he has to go to B1 or A.
There is no merit in choosing a specific specialist recommended by the GP. Any specialist attached to the hospital should be sufficient. So, it is better to be treated in B2 - to reduce the expense. However, if budget is not an issue, your friend can go to B1 or A.
I'm going to respectfully disagree about needing coverage beyond age 85. Life expectancies are on the rise, and for those who are already 65, living past 85 is a very real possibility.
We can all cite examples of people who have lived shorter or longer lives, but the statistics are showing a different picture.
I, for one, would want a good quality of life in my older years, and this includes private hospital room, access to services, etc. Even treating something minor, like a broken hip, can be expensive.
As for having Medishield extended beyond age 85. That is an unknown and will become more and more expensive to extend as there are more people in that age bracket. I won't want to take the chance that those changes, if they took place, are available to me when the time comes.
Mr.Tan, from the day i stared work to retirement, I always practise risk management. So far I have only bought medishield for B2 for self and family and prefer to self insured for deduction and co insurance. Same goes for property, I only insure rented property. Other than car ins and the above, I dont buy any for the last 35 years.
If i can get third party for car, I wont even buy comprehensive. Do you know which ins company offer third party for car?
Jill,
you are an exception..you can afford the premium but many cannot.
The objective of hospitalisation is treatment and get a cure and not to enjoy the luxury of a private room, TV, toilet attached,a telephone, a special meals and news[paper delivered to your room or maybe a suit so that you can have your whole family stay in too or a maid.
It is wishful thinking for many. The rich may splurge but for the poor it is squandering.
At the end of the day, the decision whether private shield or medishield is similar to retirement from a fulltime job --- made mainly on economic grounds.
For those who have the funds and prefer to have some control over who is their specialist, or prefer private hospitals, then private shield may make sense to them.
Regarding those specialist being recommended by your GPs etc, don't be too fixated by this. Unless you know the specialist personally and are familiar with the medical circles, he or she is just a typical specialist and who just happen to be friends with your GP.
Just for illustration sake, taking the Incomeshield B Plan (not the enhanced version) which is meant for B1 Wards. In the last 5 years, the premiums have gone up by total of 15% to 20%, depending on the age bands. Hence the premiums have gone up by roughly 3%-4% p.a. This is a rather low inflation rate compared to actual hospital costs, and the inflation will definitely get bigger as Singapore's population ages.
Right now, the premium for the above shield plan for 66 yr old is $642, and for 76 yr old is $1160. Bear in mind that this is one of the cheapest private shield plans available in Singapore today.
In 20 yrs time, assuming the 4% inflation rate, the premiums will be $1406 for 66 yr old, and $2541 for 76 yr old.
So it's basically whether you can afford or not --- for sure you need to top up with cash as Medisave has annual cap on insurance premiums. I am willing to bet that the actual premiums in 20 yrs time will be higher than what I put above.
I think what Mr Tan is trying to say is this : spending the money while still young helps one to age gracefully with fewer problems, hence better economic spending.
My personal humble experience and a word of caution: "Do not under-estimate the benefits in choosing a good specialist for more effective treatment."
The fact is that in Singapore medical centres/hospitals (private or public), the so-called specialist has possessed a different degree of competency and skill level. Sometimes, it makes a hell of difference to an ultimate recovery of the patient.
I agree with michael13. When you buy a product, there are always budget, midrange and highend options. Both Mercedes and Hyundais get you around, but why do people pay so much more for the former?
but that being said, I think the savings from buying basic medishield can cover you even if you want B1 or private ward in the long run.
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