NTUC Income is working with parallel importers to offer popular models of cars at a significant discount from the normal dealer prices. NTUC Income will provide the warranty for 3 years.
Tentatively, the savings can be 5% to 10%. More details will be announced later in the educational website:
www.KnowYourInsurance.com.sg
Thursday, February 16, 2006
Tuesday, February 14, 2006
Combined funds earned 8.2% in 2005
Dear Policyholder,
Investment Linked Funds
Thank you for investing in our investment linked funds. I have good news for you again.
Our investment funds continued to perform well in 2005. The average weighted return was 6.8%, after deduction of fees. Total fund under management has grown to more than $5,000 million.
Our combined funds performed better. The average weighted return was 8.2%. It has also outperformed its benchmark over the past 3 years.
Our funds performed well, due to the expertise of our fund managers and our commitment to bring you best value.
In a recent survey, 88% of our policyholders who invested in the combined fund are happy with the returns. More than 50% are interested to increase their investment.
To find out more about our funds, I invite you to my investment seminars held once every two weeks. You can visit our website www.income.coop or call 6877 3366.
Tan Kin Lian
Chief Executive Officer
Investment Linked Funds
Thank you for investing in our investment linked funds. I have good news for you again.
Our investment funds continued to perform well in 2005. The average weighted return was 6.8%, after deduction of fees. Total fund under management has grown to more than $5,000 million.
Our combined funds performed better. The average weighted return was 8.2%. It has also outperformed its benchmark over the past 3 years.
Our funds performed well, due to the expertise of our fund managers and our commitment to bring you best value.
In a recent survey, 88% of our policyholders who invested in the combined fund are happy with the returns. More than 50% are interested to increase their investment.
To find out more about our funds, I invite you to my investment seminars held once every two weeks. You can visit our website www.income.coop or call 6877 3366.
Tan Kin Lian
Chief Executive Officer
Get a better return for your baby bonus?
The parent is allowed to contribute up to $6,000 in a child development account (ie baby bonus). The governemnt matches with $6,000.
The total of $12,000 has to be invested with POSB which pays interest at 0.275% a year. Unused money in the account will be transferred to edusave when the child enters primary school. The investment in POSB is for 6 years.
Capital sum $12,000
Interest for 6 years at 0.275% p.a $199
Interest for 6 years at 2.5% p.a $1,916 (10 times more)!
Interest for 6 years at 5.5% p.a. $4,546 (not guaranteed, 22 times more!)
The difference is still sizeable.
We will find a way to convince the government to allow the money to be invested in our balanced fund to earn a higher return.
The total of $12,000 has to be invested with POSB which pays interest at 0.275% a year. Unused money in the account will be transferred to edusave when the child enters primary school. The investment in POSB is for 6 years.
Capital sum $12,000
Interest for 6 years at 0.275% p.a $199
Interest for 6 years at 2.5% p.a $1,916 (10 times more)!
Interest for 6 years at 5.5% p.a. $4,546 (not guaranteed, 22 times more!)
The difference is still sizeable.
We will find a way to convince the government to allow the money to be invested in our balanced fund to earn a higher return.
Monday, February 13, 2006
What is Islamic insurance?
The Muslim community prefer insurance that are based on takaful principles, such as:
- transparency in transactions
- fair dealings, meaning mutual benefit
- cooperation for a common good to assist those in need
Under these principles, the policyholders are fairly treated and receive a fair return on their savings. The insurance provider can also get a fair profit from operating their insurance business.
As a cooperative society, NTUC Income has been operating on principles that are similar to Islamic principles.
Some Muslim scholars even hold the view that takaful should be operated as a cooperative or mutual insurance.
Our Amanah fund ($300 million now, to be increased to $1 billion) is popular with both Muslims and non-Muslims.
- transparency in transactions
- fair dealings, meaning mutual benefit
- cooperation for a common good to assist those in need
Under these principles, the policyholders are fairly treated and receive a fair return on their savings. The insurance provider can also get a fair profit from operating their insurance business.
As a cooperative society, NTUC Income has been operating on principles that are similar to Islamic principles.
Some Muslim scholars even hold the view that takaful should be operated as a cooperative or mutual insurance.
Our Amanah fund ($300 million now, to be increased to $1 billion) is popular with both Muslims and non-Muslims.
Sunday, February 12, 2006
Enjoy benefit as a "preferred policyholder"
NTUC Income is looking for a better way to serve our policyholders. We plan to offer special loan terms to a "preferred policyholder":
[] Lower interest rate
[] Pre-approval of loan
[] Hassle free application
[] Longer repayment period
[] Higher loan amount
The loan could be for:
[] loan for marriage
[] to buy a car or motor cycle
[] to buy a home
[] for education
[] other purpose
To quality as a "preferred policyholder", the policyholder must be insured for at least 2 years and have total regular saving of more than $5,000.
We will also extend this status to a policyholder whose parent has at least $20,000 in cash value with us.
We want to make it a benefit for a young policyholder to be a "preferred policyholder".
[] Lower interest rate
[] Pre-approval of loan
[] Hassle free application
[] Longer repayment period
[] Higher loan amount
The loan could be for:
[] loan for marriage
[] to buy a car or motor cycle
[] to buy a home
[] for education
[] other purpose
To quality as a "preferred policyholder", the policyholder must be insured for at least 2 years and have total regular saving of more than $5,000.
We will also extend this status to a policyholder whose parent has at least $20,000 in cash value with us.
We want to make it a benefit for a young policyholder to be a "preferred policyholder".
Earn on your investment immediately!
If you buy a regular premium ILP (investment linked plan), you are likely to pay 150% of your annual premium as distribution cost.
If you invest $300 a month, the distribution cost will take away $5,400 from your savings. It goes to pay the agent's commission. This is the money that should be earning an attractive return for you instead.
If you buy a ILP from NTUC Income, 100% of your savings is invested immediately. You can get a much higher return on the maturity date!
Wow! It makes more sense to invest with NTUC Income.
Unbelievable? Go to www.askdrmoney.com.
If you have recently bought an expensive ILP, you can still make a switch now to NTUC Income. We can help you to reduce your cost and start making an invsetment gain now.
Call 6788 1111
If you invest $300 a month, the distribution cost will take away $5,400 from your savings. It goes to pay the agent's commission. This is the money that should be earning an attractive return for you instead.
If you buy a ILP from NTUC Income, 100% of your savings is invested immediately. You can get a much higher return on the maturity date!
Wow! It makes more sense to invest with NTUC Income.
Unbelievable? Go to www.askdrmoney.com.
If you have recently bought an expensive ILP, you can still make a switch now to NTUC Income. We can help you to reduce your cost and start making an invsetment gain now.
Call 6788 1111
Saturday, February 11, 2006
Visitors to my blog
My site meter shows an average of 67 people visit my blog every day, including weekends. Thank you for being one of them.
Tell you friends to visit my blog.
Tell you friends to visit my blog.
Friday, February 10, 2006
Offer better value to consumers
100 years ago, it was difficult to sell life insurance.
An insurance agent had to spend many months to learn about insurance and selling skills. A productive agent sold 20 policies in a year. It was hard work to convince people to buy life insurance.
The agent had to earn enough to make a living. So, commission had to be high, as much as 1 year of premium, to make it worth while for the agent.
The government gave tax relief to the policyholder. If the policyholder kept the policy for 10 years or longer, the saving in tax relief was more than the commission earned by the agent. The return to the policyhoder from life insurance was quite attractive, in spite of the high distribution cost.
About 20 years ago, the government in many countries removed the tax relief or made it worth much less.
Around that time, the life insurance funds were able to earn a high rate of investment return. If the policyholder kept the policy for a long period, the net return was still quite attractive, even after paying for the high distribution cost.
For example, if the insurance fund earned a net rate of 7% per annum, and the expenses effectively took away 2.5%, the net return to the policyholder was still quite attractive at 4.5%.
The scenario changes when investment return dropped. If the investment return was 4.5%, and 2.5% was deducted for expenses, the net return to the policyholder was only 2%. This would be unattractive for a 20 year investment.
Life insurance agents changed their selling pitch. They sold to customers about the importance of insurance. But the product is not really the right one, as it is too costly and give a poor return.
What is the solution?
Life insurance agents and companies have to change their approach.
They have to offer better value products to their customers. They have to reduce their distribution cost and other expenses, and distribute a larger portion of the investment return to their customers.
How can agents survive on lower commission? By finding new ways to increase the volume of sales, without having to work longer hours. In other words, by being more productive.
They should sell 50 to 100 policies a year, and not only 20 policies. The commission can be lower for each policy, but the income on the higher volume of sales will be higher.
Life insurance companies must also do their part by streamlining operations and reducing expenses.
By working together, agents and their companies can lower costs, increase returns and remain competitive in this new consumer-savvy environment.
NTUC Income is making the changes to provide better value to the customers. By adapting, we expect to prosper in the insurance industry of the 21st century.
An insurance agent had to spend many months to learn about insurance and selling skills. A productive agent sold 20 policies in a year. It was hard work to convince people to buy life insurance.
The agent had to earn enough to make a living. So, commission had to be high, as much as 1 year of premium, to make it worth while for the agent.
The government gave tax relief to the policyholder. If the policyholder kept the policy for 10 years or longer, the saving in tax relief was more than the commission earned by the agent. The return to the policyhoder from life insurance was quite attractive, in spite of the high distribution cost.
About 20 years ago, the government in many countries removed the tax relief or made it worth much less.
Around that time, the life insurance funds were able to earn a high rate of investment return. If the policyholder kept the policy for a long period, the net return was still quite attractive, even after paying for the high distribution cost.
For example, if the insurance fund earned a net rate of 7% per annum, and the expenses effectively took away 2.5%, the net return to the policyholder was still quite attractive at 4.5%.
The scenario changes when investment return dropped. If the investment return was 4.5%, and 2.5% was deducted for expenses, the net return to the policyholder was only 2%. This would be unattractive for a 20 year investment.
Life insurance agents changed their selling pitch. They sold to customers about the importance of insurance. But the product is not really the right one, as it is too costly and give a poor return.
What is the solution?
Life insurance agents and companies have to change their approach.
They have to offer better value products to their customers. They have to reduce their distribution cost and other expenses, and distribute a larger portion of the investment return to their customers.
How can agents survive on lower commission? By finding new ways to increase the volume of sales, without having to work longer hours. In other words, by being more productive.
They should sell 50 to 100 policies a year, and not only 20 policies. The commission can be lower for each policy, but the income on the higher volume of sales will be higher.
Life insurance companies must also do their part by streamlining operations and reducing expenses.
By working together, agents and their companies can lower costs, increase returns and remain competitive in this new consumer-savvy environment.
NTUC Income is making the changes to provide better value to the customers. By adapting, we expect to prosper in the insurance industry of the 21st century.
Wednesday, February 08, 2006
Give work to students from poor family
NTUC Income plans to give work to students who come from poor family. They will be recommended by the school.
We will pay them at $6 or $7 an hour. The work can be done using the personal computer in the school. The student can work for 2 hours each day.
We hope to benefit 500 students in a year.
If these students do not have useful work, they may idle and loiter. Giving them useful work can help their family to pay for their school expenses. It will give them something meaningful to work for.
We will pay them at $6 or $7 an hour. The work can be done using the personal computer in the school. The student can work for 2 hours each day.
We hope to benefit 500 students in a year.
If these students do not have useful work, they may idle and loiter. Giving them useful work can help their family to pay for their school expenses. It will give them something meaningful to work for.
Invest in a 10 year annuity and save tax
Here is an idea. An annuitant can invest in a 10 year annuity and save on tax.
Annuity is now exempt from tax. Here is an example of how it can be used for tax saving.
The annuitant invest $10,000 to receive an annuity certain of $1,232 per year for 10 years. This assumes that 4% interest is used in the computation.
The total payment for 10 years is $12,320. The actual interest earned is $2,320. If the annuitant pays income tax at 10%, the tax payable on the interest component should be $232. By investing in an annuity plan, the annuitant save $232 on the tax.
The tax saving add 0.4% to the yield. This is the same as investing in another product to earn 4.4%, pay income tax at 10% and get the same net return as the annuity.
Annuity is now exempt from tax. Here is an example of how it can be used for tax saving.
The annuitant invest $10,000 to receive an annuity certain of $1,232 per year for 10 years. This assumes that 4% interest is used in the computation.
The total payment for 10 years is $12,320. The actual interest earned is $2,320. If the annuitant pays income tax at 10%, the tax payable on the interest component should be $232. By investing in an annuity plan, the annuitant save $232 on the tax.
The tax saving add 0.4% to the yield. This is the same as investing in another product to earn 4.4%, pay income tax at 10% and get the same net return as the annuity.
Monday, February 06, 2006
Know Your Insurance - Topics
If you like to learn about any of the topics below, you can visit
www.KnowYourInsurance.com.sg
INSURANCE
Motor Insurance
iYoung
Investment Linked Plan
Personal Accident
Travel Insurance
Medical Insurance
Saving for Education
FAST (Financial Advice)
An insurance cooperative
Life Annuity
Home Insurance
GENERAL
Manage Your Money
Take a holiday in Sabah
Invest your CPF savings
Buying a new car
Estate Duty
www.KnowYourInsurance.com.sg
INSURANCE
Motor Insurance
iYoung
Investment Linked Plan
Personal Accident
Travel Insurance
Medical Insurance
Saving for Education
FAST (Financial Advice)
An insurance cooperative
Life Annuity
Home Insurance
GENERAL
Manage Your Money
Take a holiday in Sabah
Invest your CPF savings
Buying a new car
Estate Duty
Know Your Insurance website - Mandarin & Malay
NTUC Income is launching the Mandarin and Malays versions of the "Know Your Insurance" website.
We first launched the English version of this website on 21 December 2005. It received encouraging response. A total of 33,000 people have visited the website over the past five weeks, or an average of 1,000 visitors daily.
5,000 people have taken the test on the insurance topics and are eligible for a discount when they purchase NTUC Income's insurance products.
A recent survey of 200 visitors:
82 per cent find the website to be educational
94 per cent of the users will visit the website again
82 per cent will recommend their friends to visit the website
74 per cent will take advantage of the discounts to buy insurance
The top five popular topics are: Motor Insurance, Investment-Linked Plan, Life Annuity, Medical Insurance and iYoung.
We first launched the English version of this website on 21 December 2005. It received encouraging response. A total of 33,000 people have visited the website over the past five weeks, or an average of 1,000 visitors daily.
5,000 people have taken the test on the insurance topics and are eligible for a discount when they purchase NTUC Income's insurance products.
A recent survey of 200 visitors:
82 per cent find the website to be educational
94 per cent of the users will visit the website again
82 per cent will recommend their friends to visit the website
74 per cent will take advantage of the discounts to buy insurance
The top five popular topics are: Motor Insurance, Investment-Linked Plan, Life Annuity, Medical Insurance and iYoung.
Saturday, February 04, 2006
My wish for budget 2006 - SRS
If I were the Finance Minister, I would ... Review the Supplementary Retirement Scheme and make it more effective in helping people to make additional savings for retirement.
I will increase the amount of contribution to a flat 15% of annual income, or $16,000 whichever is higher.
For non-residents who do not contribute to CPF, I will allow an additional contribution of 20% of earnings, subject to a cap of $9,600 (being 20% on $4,000 X 12).
The other features of the SRS can remain the same.
I will increase the amount of contribution to a flat 15% of annual income, or $16,000 whichever is higher.
For non-residents who do not contribute to CPF, I will allow an additional contribution of 20% of earnings, subject to a cap of $9,600 (being 20% on $4,000 X 12).
The other features of the SRS can remain the same.
Annuity income is exempt from personal tax
If you buy an annuity, the income that you receive is fully exempt from personal tax.
Here is an example. Assume an annuitant invest $100,000 in an annuity and receive back a total of $150,000 during the lifetime. This comprise of a return of capital (ie $100,000) and the income earned on investing this sum, (ie $50,000).
The annuitant does not have to pay any personal tax on the full amount revieved as annuity.
If the annuitant had invested invested in other type of investment and earned an income of $50,000 over several years, this income will be taxed at the marginal rate. If this rate is an average of 10%, the tax payable is $5,000.
By investing in the life annuity, the annuitant enjoy this tax exemption and receives $5,000 more.
An annuity has a tax advantage. It is better to invest in an annuity, if the return given is competitive.
In the above example, if the total payout of $150,000 is received over 20 years, the annuity income for each year is $7,500. This represents an attractive return of 7.5% on the invested sum. However, this return comprise partly of the consumption of the capital and on the actual income earned.
NTUC Income offers an attractive return on our annuities. We now account for 60 percent of the market. The remaining 40% is shared by several life insurance companies.
Here is an example. Assume an annuitant invest $100,000 in an annuity and receive back a total of $150,000 during the lifetime. This comprise of a return of capital (ie $100,000) and the income earned on investing this sum, (ie $50,000).
The annuitant does not have to pay any personal tax on the full amount revieved as annuity.
If the annuitant had invested invested in other type of investment and earned an income of $50,000 over several years, this income will be taxed at the marginal rate. If this rate is an average of 10%, the tax payable is $5,000.
By investing in the life annuity, the annuitant enjoy this tax exemption and receives $5,000 more.
An annuity has a tax advantage. It is better to invest in an annuity, if the return given is competitive.
In the above example, if the total payout of $150,000 is received over 20 years, the annuity income for each year is $7,500. This represents an attractive return of 7.5% on the invested sum. However, this return comprise partly of the consumption of the capital and on the actual income earned.
NTUC Income offers an attractive return on our annuities. We now account for 60 percent of the market. The remaining 40% is shared by several life insurance companies.
Friday, February 03, 2006
Cancel your motor insurance and move to NTUC Income
NTUC Income charges a lower premium rate for motor insurance. The difference can be up to 25%.
If you have insured at a higher premium rate, you can cancel the existing policy, get the refund premium and move to NTUC Income now.
Your current insurer will normally charge 15% of the premium or $100 for administration charges for cancellation. The unused premium minus the cancellation charge is returned to the policyholder.
Here is an example.
Take the case of a policyholder who pays a premium of $1,200 and wish to cancel the policy after 6 months.
The refund premium is 1/2 of 85% of $1,200 = $510.
If our premium is $900 (ie 25% lower than $1,200), the policyholder pays only $450 for the 6 month of insurance with us.
He will benefit by cancelling the policy and moving to us now. The benefit is higher, if you cancel your policy within the first few months.
If you have insured at a higher premium rate, you can cancel the existing policy, get the refund premium and move to NTUC Income now.
Your current insurer will normally charge 15% of the premium or $100 for administration charges for cancellation. The unused premium minus the cancellation charge is returned to the policyholder.
Here is an example.
Take the case of a policyholder who pays a premium of $1,200 and wish to cancel the policy after 6 months.
The refund premium is 1/2 of 85% of $1,200 = $510.
If our premium is $900 (ie 25% lower than $1,200), the policyholder pays only $450 for the 6 month of insurance with us.
He will benefit by cancelling the policy and moving to us now. The benefit is higher, if you cancel your policy within the first few months.
Advice: How to restructure your life insurance
QUESTION
Dear Mr Tan
In today's global market condition and removal of the iron rice bowl, job security are now being a thing of the past. Many Singaporean whom have bought numerous
life insurance policies found that they are not able to keep up with the long term payment.
This has resulted in cancellation after emptying accumulated bonuses to pay their insurance premium. It is no longer attractive to make a long term commitment.
I am a victim of multinational company relocated from Singapore to New Delhi.
REPLY
Dear
I will get someone to assist you on restructuring your insurance plans, as follows:
- surrender for the cash value
- NTUC Income gives generous values compared to other insurance companies
- invest the cash value in our combined fund (for flexibility and attractive return)
- make flexible savings under our Ideal plan
- take a decreassing term assurance for your coverage (it cost you much less)
Dear Mr Tan
In today's global market condition and removal of the iron rice bowl, job security are now being a thing of the past. Many Singaporean whom have bought numerous
life insurance policies found that they are not able to keep up with the long term payment.
This has resulted in cancellation after emptying accumulated bonuses to pay their insurance premium. It is no longer attractive to make a long term commitment.
I am a victim of multinational company relocated from Singapore to New Delhi.
REPLY
Dear
I will get someone to assist you on restructuring your insurance plans, as follows:
- surrender for the cash value
- NTUC Income gives generous values compared to other insurance companies
- invest the cash value in our combined fund (for flexibility and attractive return)
- make flexible savings under our Ideal plan
- take a decreassing term assurance for your coverage (it cost you much less)
Thursday, February 02, 2006
Avoid Structured Deposit
QUESTION FROM A COLLEAGUE
In 2003, my father and I invested $5,000 in a 6-year capital guaranteed investment product called "Enrich Account".
It provides a 3.6% pay-out in the first year and subsequent pay-outs on the Bank's discretion. We received a payout of S$180 in 2003, S$90 in 2004 and no payout in 2005. The current value of the investment is S$4,300. We are tied up till 2009.
I suspect the poor performance is due to its bond investments which are affected by the rising interest rate environment. Although it is capital guaranteed, it ties up our money for 6 years and ultimately gives poor returns.
What is your advice?
LESSON:
This is a good example of structured deposits and the problems with them. I avoid them.
If you wish to invest in a structured product, you should understand how it works. You should also ask the Bank to disclose disclose the minimum and maximum return and the actual returns realised - for each of the structured products which have matured.
In 2003, my father and I invested $5,000 in a 6-year capital guaranteed investment product called "Enrich Account".
It provides a 3.6% pay-out in the first year and subsequent pay-outs on the Bank's discretion. We received a payout of S$180 in 2003, S$90 in 2004 and no payout in 2005. The current value of the investment is S$4,300. We are tied up till 2009.
I suspect the poor performance is due to its bond investments which are affected by the rising interest rate environment. Although it is capital guaranteed, it ties up our money for 6 years and ultimately gives poor returns.
What is your advice?
LESSON:
This is a good example of structured deposits and the problems with them. I avoid them.
If you wish to invest in a structured product, you should understand how it works. You should also ask the Bank to disclose disclose the minimum and maximum return and the actual returns realised - for each of the structured products which have matured.
Wednesday, February 01, 2006
A new way to sell insurance
INSURANCE AGENTS
Tired of prospecting?
Tired of making cold calls?
Tired of running around to make presentations?
Tired of long working hours?
We are looking for qualified agents to join our expanding team of full-time Insurance Consultants
• Fixed salary of $1,500 to $2,500 with performance-based incentives
• Comprehensive training and career progression
• Office-based environment
• Attractive staff benefits and balanced work-life
• 5-day work week
• Get a sign-on bonus of $1,000 (subject to conditions)
Interested candidates, please apply via: www.income.coop/career
Tired of prospecting?
Tired of making cold calls?
Tired of running around to make presentations?
Tired of long working hours?
We are looking for qualified agents to join our expanding team of full-time Insurance Consultants
• Fixed salary of $1,500 to $2,500 with performance-based incentives
• Comprehensive training and career progression
• Office-based environment
• Attractive staff benefits and balanced work-life
• 5-day work week
• Get a sign-on bonus of $1,000 (subject to conditions)
Interested candidates, please apply via: www.income.coop/career
Tuesday, January 31, 2006
Regular investments using CPF
QUESTION:
Dear Mr. Tan,
Thank you for regular updates in your blog. It is interesting, relevant and useful.
Could you discuss a little on regular savings plan for your investment funds products, using CPF OA and SA?
I am sure other readers would be keen to know if there is such a plan as it potentially helps to beat the CPF returns (if using CPF funds for investment). If there is no RSP arrangements, would NTUC be looking into this?
REPLY
Dear
NTUC Income has a regular savings plan. It is called the Ideal plan. It has to be paid by cash.
Alternatively, you can invest your CPF savings (ordinary or special account) as a single premium under our Flexilink plan. You can top up your savings at any time with a "recurring" single premium, provided that the top up is at least $1,000.
The advantage of a single premium plan is that the charge is very low.
Dear Mr. Tan,
Thank you for regular updates in your blog. It is interesting, relevant and useful.
Could you discuss a little on regular savings plan for your investment funds products, using CPF OA and SA?
I am sure other readers would be keen to know if there is such a plan as it potentially helps to beat the CPF returns (if using CPF funds for investment). If there is no RSP arrangements, would NTUC be looking into this?
REPLY
Dear
NTUC Income has a regular savings plan. It is called the Ideal plan. It has to be paid by cash.
Alternatively, you can invest your CPF savings (ordinary or special account) as a single premium under our Flexilink plan. You can top up your savings at any time with a "recurring" single premium, provided that the top up is at least $1,000.
The advantage of a single premium plan is that the charge is very low.
Top Up Rider for Incomeshield
QUESTION:
Dear Mr Tan,
I am a fan of your blog. My family are gratefully insured under Incomeshield for many years. Your recent discussion on affordable medical insurance prompts me to seek your advice.
In about a week's time, my father is likely to undergo an angioplasty op by a referred doctor in SGH's National Heart Centre, likely under "minimum" B1 ward. Based on our calculation, we may be able to claim less than half of the hospital bill from Incomeshield. My dad is under Plan B.
This prompts me to think of getting my family a second medical plan (a backup) that may cover the higher cost should special circumstances that need private or Class B1 govt ward arise in the future.
However, we do not wish to give up on Incomeshield which we have great faith in in taking care of us in decades to come. And I know private medical plans are very
expensive (as you have mentioned) and also have to be paid by cash.
I would like to seek your advice on whether NTUC Income (and/or CPF Board)
allow one to take up both Incomeshield (paid with cash instead) and another
Shield plan (e.g. Aviva's MyShield) (paid from CPF Medisave) at the same
time. If it is possible, how will the claim process be like with 2 shield
plans?
REPLY
Dear
I am sorry to learn about your father's medical condition. Is your father covered under a dread disease policy? He can claim under this policy for a cash benefit.
For Incomeshield, we will be introduced a rider that can pay more, for major illness. The additional premium is 15% of the standard premium. It should cover all of the medical bill for your father's case, apart from the mandatory deductible and co-insurance. Under plan B, the premium will be about 30% lower than the expensive
plan that covers everthing "as charged".
The rider should be ready within two months.
Tan Kin Lian
Dear Mr Tan,
I am a fan of your blog. My family are gratefully insured under Incomeshield for many years. Your recent discussion on affordable medical insurance prompts me to seek your advice.
In about a week's time, my father is likely to undergo an angioplasty op by a referred doctor in SGH's National Heart Centre, likely under "minimum" B1 ward. Based on our calculation, we may be able to claim less than half of the hospital bill from Incomeshield. My dad is under Plan B.
This prompts me to think of getting my family a second medical plan (a backup) that may cover the higher cost should special circumstances that need private or Class B1 govt ward arise in the future.
However, we do not wish to give up on Incomeshield which we have great faith in in taking care of us in decades to come. And I know private medical plans are very
expensive (as you have mentioned) and also have to be paid by cash.
I would like to seek your advice on whether NTUC Income (and/or CPF Board)
allow one to take up both Incomeshield (paid with cash instead) and another
Shield plan (e.g. Aviva's MyShield) (paid from CPF Medisave) at the same
time. If it is possible, how will the claim process be like with 2 shield
plans?
REPLY
Dear
I am sorry to learn about your father's medical condition. Is your father covered under a dread disease policy? He can claim under this policy for a cash benefit.
For Incomeshield, we will be introduced a rider that can pay more, for major illness. The additional premium is 15% of the standard premium. It should cover all of the medical bill for your father's case, apart from the mandatory deductible and co-insurance. Under plan B, the premium will be about 30% lower than the expensive
plan that covers everthing "as charged".
The rider should be ready within two months.
Tan Kin Lian
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