Tuesday, December 29, 2015

ElderShield supplement



Dear Mr. Tan
I receive a call from an agent recommending that I should top up my Eldershield as $400 is not enough. Should I buy the top up policy?
REPLY
Get the agent to send you a benefit illustration. You can send it to me. I will carry out an analysis.
The claim ratio for this class of business is very low, as shown here:
http://tklcloud.com/MAS/publicview.aspx?class=20
This means that very few people are making claim for disability. The insurance company are making a very big profit margin. One large company make a profit of more than 90% on the premium that they received!

2 comments:

Anonymous said...

Eldershield rider is to enhance the coverage but some insurance agents abused it by conning their customers to buying bigger sum assured which requires out of pocket payment besides the $600 from the medisave. Why? Bigger sum assured means bigger commission.And over time the customers cannot pay the cash portion and the policy lapsed. Why is this happening? Did the greedy agents do fact find to find out whether the cash portion or the bigger sum assured is required? No...it is because bigger sum assured means bigger commission for the agents. This is too much. The scheme is good until the unscrupulous agents abused it. The regulator must come down hard on them. And the public must also be wary and proactive to lodge complaint with MAS and not the insurance company.
The public must help themselves to lodge complaint with the regulator, MAS. Nobody will "eat full and nothing to do" help you if you have been aggrieved by the unscrupulous insurance agents.

海芋 Haiyu said...

I am asked to top up to get $1500 per month payout and I have to pay out of pocket of approx. $800-900 per year for the premium top up. I am single and do not wish to burden my siblings in case I am bed ridden. But I am not sure if I should keep paying this kind of premium instead of investing the money to earn interest. What is your advice for people like me?

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