Some people were advised to buy health insurance at a younger age, to enjoy a lower premium. This is a delusion. Unlike life insurance where the premium is usually fixed based on the entry age, the premium for health insurance usually increases according to your age. As you get older, you pay a higher premium.
The premium can become quite high as you grow older. This table from NTUC Income (http://www.income.com.sg/insurance/IncShield/premium.asp) shows that the premium to be over $4,000 when you are 85. The insurance does not cover the full bill, as you have to pay the deductible and co-insurance, when you are hospitalized. The premium rates charged by other insurance companies are likely to be higher.
You will also find that there is a choice of more than 10 plans just from one insurance company. If you shop around with the other companies, you will have more than 50 plans to choose from. If you talk to an insurance agent, he (or she) is likely to advice you to buy the most expensive plan, as it offers the "best coverage". It seems that cost is not an issue!
When you buy an expensive plan, it may look affordable at a younger age. But you will find it to be more expensive as your grow older. For example, a plan that cost you $400 at age 45 will cost you $4,000 when you are 85 (just look at the same table that is quoted above).
You have to take note of another point. The insurance company has been increasing their premium rates (for the same age group) over the years. What cost $4,000 today, may cost $5,000 a year in 10 years time (or sooner).
The premium can become quite high as you grow older. This table from NTUC Income (http://www.income.com.sg/insurance/IncShield/premium.asp) shows that the premium to be over $4,000 when you are 85. The insurance does not cover the full bill, as you have to pay the deductible and co-insurance, when you are hospitalized. The premium rates charged by other insurance companies are likely to be higher.
You will also find that there is a choice of more than 10 plans just from one insurance company. If you shop around with the other companies, you will have more than 50 plans to choose from. If you talk to an insurance agent, he (or she) is likely to advice you to buy the most expensive plan, as it offers the "best coverage". It seems that cost is not an issue!
When you buy an expensive plan, it may look affordable at a younger age. But you will find it to be more expensive as your grow older. For example, a plan that cost you $400 at age 45 will cost you $4,000 when you are 85 (just look at the same table that is quoted above).
You have to take note of another point. The insurance company has been increasing their premium rates (for the same age group) over the years. What cost $4,000 today, may cost $5,000 a year in 10 years time (or sooner).
5 comments:
Hi Mr Tan,
Thanks for the advice.
I switched my whole family including 2 babies to a private shield as charged plan. so no more medishield
May not be able to afford the premium when old > 70. can we switch to medishield again? any opinions what we can do other than to try and earn more?
Yes, you can switch from a private shield to medishield at any time, and you will be covered automatically. No need to worry about getting approval for the switch back, as it is automatically approved.
i see from income website..
there are so many plan..
IncomeShield M Plans)
IncomeShield Plan)
Enhanced IncomeShield Plan)
what are the different.. i heard that income now don't have full rider for those cash topup.
Medisave Limit for Premium Payment: $1150
Incomeshield Premium: $1291 (female, 81yo)
Housewife Pay CASH: $141 ($1291 minus $1150)
QUESTION
1. The nation is 40+years old, how many housewife (above 65yo) has CPF saving enough to cover medishield premium?
2. CPF Board ask their relative to topup, can lower income workers make it?
Thanks for this great blog, it helped me a lot in getting more information. Bike Insurance Check Online
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