Wednesday, May 28, 2008

Duplicative coverage

COMMENT POSTED IN MY BLOG

I have a friend who gave up Medishield because she has company medical benefit.At age 50, she contracted breast cancer, the company medical paid for her treatment. She left her job at 55, and because of her breast cancer, though in remission, she is not able to get a Shield Plan. Now she contracted liver cancer and is not covered by any medical insurance. So whether to insure the Shield Plan when employed with medical benefit or not, is really something to think much harder.
.said

REPLY
The coverage for medical expenses is already provided by the company. The insurance adviser is advising these employees to buy an Enhanced plan (costing $200 or more a year) just to cover the small risk of not getting continuing insurance after leaving a job. This cost is too high for the risk.

Soon, there will be a cheaper way to get this type of protection. For example, the company medical plan can be taken with an insurance company that offers the continuity of cover.

The employees do not have to buy their personal Shield coverage. They can cancel their existing coverage. This will save $200 or more yearly for the employee. The saving can be invested to get additional money for retirement (instead of being wasted on a cover that is mostly unnecessary).
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2 comments:

Thomas Phua's Blog said...

Mr Tan,
Not many are self sufficient to be self insured and no need such insurance.

This case is an example of penny wise pound foolish.

I hope I am getting the point across that Shield plan is a necessary backup and expense for lifetime.

May 28, 2008 6:18 PM
Tan Kin Lian said...

Under the "portability insurance" which will be provided by the insurer under its group H&S policy sold to employers (to be ready in a few months time), the employee is guaranteed to get continuity of coverage on standard rates, on leaving the employment.

There is no need for the employee to buy a personal Shield policy to provide this assurance. This allows the employee to save on the annual premium paid on a personal Shield policy.

May 28, 2008 8:52 PM

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