Monday, April 16, 2007

Cover for critical illness

HI,

I am already sufficiently covered for life and term insurance. But in medical insurance wise, I am only covered with NTUC medishield plan B.

Do you think it is necessary to get a critical illness insurance? And for how long? I am 31 years old. What is the most affordable option?

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My reply:

Here is my frank advice. Many insurance advisers want you to buy a critical illness policy. It is really a whole life policy. The premium is high and the return is generally poor.

I prefer to put the savings in an large, well diversified, low cost fund, invested mainly in equities. It gives an attractive return. The accumulated savings may be more than the critical illness cover in 20 years time.

If you have a Medisheld plan, it should take care of the medical expenses, even for critical illness.

You can read more from my "Investment Tips, April 2007" which has just been posted in my blog.
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2 comments:

Unknown said...

Dear Mr Tan,

Have went to drmoney website and found that medishield is even better than income shield. Below is the link:
http://www.askdrmoney.com/Ins_Health.htm

But for me, I have changed to Enchanced IncomeShield Advantage, you can check the diffence below:
http://incnet.income.com.sg/uiGuide/guideDetailsPublic.aspx?gde=3045

And I was also thinking of buying rider so as to compensate for the deductible and co-insurance. But my money is limited. So still thinking about it. :p

You can check the enchanced incomeshield with rider from the link below:
http://incnet.income.com.sg/uiGuide/guideDetailsPublic.aspx?gde=3051

Thanks and best regards,
Kim Seng

April 17, 2007 8:46 AM
Anonymous said...

Hmm now they've removed the rider and changed it to this Assist Rider which sounds pretty much unfair esp when the premium is much higher than the medishield which covers most of the cost.. yet.. it only covers so little that apparently.. now the 10% part needs to come out from our own pocket now.. It's quite not worth it I think...

November 28, 2007 10:15 PM

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