Sunday, January 29, 2012

Cost of health insurance

Are you aware about the high cost of health insurance? The premium to cover age 1 to 75 years, including interest of 4% on the premium, can accumulate to $280,000. Do you expect your medical bill to cost more than this? Is it prudent to spend so much on your health insurance? This staggering figure does not include the cost beyond age 75 - which will escalate steeply. Most people will live beyond 75 years - make sure you still have Medisave savings to last for many more years.
You can download the article here (but you have to provide your email address).

FISCA members can read this article directly in


Tan Kin Lian said...

The insurance agents frighten consumers about the high cost of health care, and offer insurance as a solution. They did not explain the high cost of insurance, as seen in this example about AIA Health Shield Gold Max. I have not calculated the cost of similar plans offered by other insurance companies, but I suspect that they will be expensive as well. A low cost option is to buy CPF Medishield, or be self-insured.

At the young age, most people are covered by their employer, or their have low incidents of hospitalisation. When they are old, they should have accumulated sufficient savings in Medisave to self-insure.

Tan Kin Lian said...

The danger of spending too much on expensive health insurance when you are young, e.g. up to age 75, is that you will not have any money left beyond age 75, when you need health insurance more than ever.

srichakra said...

After a looooong time an interesting and different perspective from Mr.TKL. Thanks for sharing your opinions and still I don't agree 100% with your views given the fact that its all about 'probability'.

By the way is it necessary to capture email ID's instead of sharing it openly.

Anonymous said...

Mr. Tan , ntuc agents are no different . They always advise their clients to buy the highest plan with all the expensive to buy private plan with rider assist, cash rider, etc.....remember the health minster who advised against having riders to increase the cost? Is the agent thinking of the interest of the clients? no, defintely but his own interest.
This defeats the purpose of the plan for catastrophic events.
Ntuc agents are jsut super duper sales champions and nothing more. They are no financial consultants
as they claim on their name card.They should have the title as Executive Sales Champion. "Executive' title is for the salesmen who squeezed the most commission out of their clients.

Tan Kin Lian said...

Hi srichakra
If you do not want to provide the email address, you can join FISCA ( and have direct access after you have login.

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