This will make you buy medical insurance immediately! - $1 million medical bill in Singapore

It is all too often to hear people say that insurance is not important. Especially in Singapore, insurance agents and advisers often hear excuses such as there is MediShield insurance, there is medisave, Singapore's healthcare system is the one of the best in the world and government has kept it affordable.

But if you get smacked with a medical bill of $1 million like Fina Leong did, you wouldn't be saying the same thing.

In a heartfelt post on facebook, Fina shared a very personal experience of what her mum went through:

Fina Leong, $1 million medical bill in Singapore

If you can't see it, here's where to find the link and what she shared:

Is it necessary to re-evaluate insurance policies?

Press Release

Purchasing an insurance policy is the first step towards getting insured. If you think you’ve done enough. No you haven’t. An insurance policy grows and evolves with you as you move through life. What you purchase today may not be as relevant in 10 years time and that’s why it’s crucial that you revisit your policy from time to time.

Re-evaluating your insurance policy is a necessity and especially vital when you experience significant life events like marriage or having a child.  When married, review both your and your spouse's policy coverage. This is crucial step, especially if you are the sole breadwinner of the family. Ensuring that your policy fits your family needs will greatly ease their burden should you require sudden hospitalization or death which could leave your spouse and family in financial limbo and unable to pay the bills.

Keep monthly expenses in mind as well as your income and that of your spouse when choosing the policy you want. And when you have children, review it again. This is because protecting your child’s future or to save for their education fund is one of the very first consideration a new parent should make, as it is one way to make sure  your child is financially protected if their parents can’t be there for them.

“It is a good idea to speak with your insurance agent every three years about your life insurance policy and your changing needs. This way you'll always be prepared should the worst happen, and your loved ones be left behind without the financial means to support themselves,” said Rangam Bir, CEO of Allianz Life Insurance.

Are life and medical insurance plans REALLY essential for each individual and family?

Allianz Life Insurance Malaysia tells you why it is.

As an insurer, Allianz Life Insurance Malaysia Berhad (“Allianz Life”) wants to create awareness on the importance of life and medical insurance plans to each individual and family. It realises the need to not only provide results for customers but also to the general public alike.

“Both the life and medical insurance plans are equally important in its own way. A life insurance plan is especially important for the sole breadwinner of a family as in the event of death or permanent disablement of the breadwinner, the life insurance policy provides protection for the most basic needs of the affected family. This is such as the policy proceeds can step in to mitigate the loss of regular income. On the other hand, a medical insurance plan is certainly necessary for each and every individual as it covers the cost of hospitalization in case of an illness. This is especially important as medical costs are on the rise,” said Rangam Bir, CEO of Allianz Life.

As life insurance intends to look after the well-being of families, it also forms an integral pillar in one’s financial planning and estate planning portfolio.  It is important to plan and prepare for any unforeseen events as families should not be burdened with trying to meet basic financial obligations. As both life and medical insurance plans work on the basis of risk probability, it is always advisable to start a life or medical insurance policy young when the risks assumed are lower. Most life insurers enable an application for life and medical insurance as early as when the child is 15 days old. 

“One does not have to buy an expensive plan, but begin with an affordable one as it is better to have a plan even if it provides small coverage than not to have one at all.  Once a plan is purchased, insurers will not change the terms and conditions of the policy due to health condition that is acquired after the policy is in force, unless the policy lapse,” said Rangam.

For those who already are diagnosed with illness and do not have an insurance plan in hand, they can still purchase a life insurance policy as long as the illness is not life threatening or terminal. 

Does travel insurance cover activities such as such as water sports, winter-sports or others such as bungee-jumping, indoor climbing, or going on a hot air balloon?

Going on an adventure-filled and action-packed holiday? Bought your travel insurance and you are all good to go?

Not quite.

Travel insurance policies typically come with exclusions stating that they do not cover "dangerous activities" such as bungee jumping and water sports. So what can you do if you plan to engage in exciting activities such as such as water sports, winter-sports or others such as bungee-jumping, indoor climbing, or going on a hot air balloon?

Here's what Allianz suggests:

"Individuals who are planning for an adventurous or action-packed holidays such as water sports, winter-sports or others such as bungee-jumping, indoor climbing, or going on a hot air balloon can be covered as well with an additional premium paid which also provides some coverage to sporting equipments."

More travel insurance tips and points to note from Allianz:

The coming changes in Critical Illness Insurance definitions

So the Life Insurance Association of Singapore announced Changes to Critical Illness Insurance Benefits Guidelines. (For quick takeaways: Understanding the Changes to Critical Illness Insurance Benefits Guidelines.)

So how will the definitions differ?

We take a look at the five critical illnesses which research findings from Gen Re’s “2012 Dread Disease Survey” shows that over 90 per cent of all severe stage claims received by life insurers are for. The markets covered by Gen Re’s survey included Hong Kong, Malaysia, Australia, United Kingdom and Singapore, and these five important or core CIs are found within the standard 37 CIs. 

The five are: 

• Major Cancers 
• Heart Attack of Specified Severity 
• Coronary Artery By-pass Surgery 
• Stroke 
• Kidney Failure 

 

Changes to Critical Illness Insurance Benefits Guidelines

Fresh off the press:

Life Insurance Association Singapore (LIA) introduces updated Critical Illnesses benefit guidelines to meet changing needs of policyholders 


1 August 2014 – Following a one-year review, the Life Insurance Association Singapore (LIA Singapore) today announced changes to the Critical Illnesses (CI) benefit framework aimed at providing consumers in Singapore with more varied CI products. The revised guidelines encourage life insurers to innovate products and services to better meet the evolving needs of Singaporeans. 

Effective immediately, CI benefits offered under new individual or group insurance policies may be launched with two changes. They are: 

Revised standard definitions for the severe stage of 37 common CIs; and 
Flexibility for more medical conditions to be covered 

The framework is adopted by all member companies of the LIA Singapore and the General Insurance Association of Singapore (GIA). 

“The Life Insurance Association is pro-actively introducing changes to provide for current and anticipated needs of individuals in Singapore. This is especially important given the changing demographics of our community, medical advancements and expectations of today’s society. Making refinements to the critical illness benefit framework is one of numerous initiatives undertaken by the life insurance industry aimed at providing protection for the well-being of individuals over their lifetime,” said Dr. Khoo Kah Siang, President of LIA. 

Today, Singapore has a greying population with 300,000 people aged 65 or above, and that will triple by 2030
The incidence of chronic diseases among both the young and old is also increasing and will escalate the nation’s overall healthcare expenditure by an additional 11 per cent each year until 20182

Revised standard definitions for the severe stage of 37 common CIs 

Standard definitions for the severe stage of some of the 37 common CIs have been updated to reflect advances in clinical practices, medical science and technology which have impacted certain illnesses in their diagnosis and treatment. 

Medishield Life vs Private Integrated Shield Plans - to cancel or not to cancel?

By now, if you are a Singaporean (or living in Singapore), you would have read and heard about Medishield Life - the government's initiative of guaranteed medical and hospitalisation insurance coverage (regardless of medical/health conditions), lifetime coverage, and improved benefits. (more information available at http://www.moh.gov.sg/content/moh_web/medishield-life.html)

As you may know, the media is going on overdrive with headlines suggesting that people will be/should be cancelling their private integrated shield plans from AIA, Aviva, Great Eastern Life, NTUC Income Insurance, or Prudential.

The discussion is probably premature as premiums of Medishield Life are not even revealed yet.

Other analysts and websites are giving their take on the issue, but there still seems to be some confusion. So as usual, we hope to make it easier to understand an issue on insurance matters. We will be avoiding the technicalities of comparison between Medishield Life and Private Integrated Shield Plans, in the hope that you can have a broader and better understanding of the issue without being bogged down by the nitty-gritty details which can be understandably confusing and frustrating. 

Here is just 5 questions that you will have to ask yourself to guide you in your decision making when the time comes (Please discuss with a qualified financial adviser):

What to consider when buying car insurance?

Here is a guide from the General Insurance Association of Singapore on buying a motor insurance policy:

BUYING A MOTOR INSURANCE POLICY – WHAT TO CONSIDER

Not all motor insurance policies are the same. To meet the individual needs of customers, insurers offer a wide variety of products. By shopping around, you will have the best chance of finding a policy with your preferred combination of price, excess and requirements relating to use and repairs.

As a general rule, the lower the premium, the more restrictions may apply to what is covered, how much you would be paid in the event of a claim, and what your options may be in the event of a claim. For instance, low-priced policies might come with restrictions as to where you can send your vehicle for repair or whether new or reconditioned parts are used. More expensive policies may allow more flexibility in your choice of repairers, etc.

The following are important things to consider when buying a motor insurance policy:

·        Are there restrictions on who can drive the vehicle?

·        What extra cover can you buy?

·        Does the policy meet the requirements of your bank or finance company if you are buying the vehicle on hire purchase or a car loan scheme?

·        How much excess will you be required to pay should you need to make a claim?

·        Does the policy require you to take your vehicle to an Independent Damage Assessment Centre (Idac) for damage assessment?

·        Does the policy have restrictions on who is permitted to repair the vehicle?

·        Will reconditioned parts be used for repairs?

Are Singaporeans saving enough for retirement?

One of HSBC’s series of independent global studies into The Future of Retirement. 

A new reality is its eighth report and highlights the real challenges in planning for and achieving the retirement you want. It explores what people are looking forward to from their retirement, what is stopping them from reaching their aspirations and how planning can help to achieve greater retirement wealth.

The Singapore country report, based on the views of over 1,000 respondents in Singapore, highlights the main findings into what people are looking forward to from their retirement and how they are expecting to pay for these aspirations.

The Future of Retirement series released this year, is based on a survey of more than 15,000 people in 15 countries in July and August 2012. Since The Future of Retirement programme began in 2005, more than 125,000 people have been surveyed.

Key findings

Questions on the insurance benefit illustration investment returns revision

You may have read the announced change in Projected investment returns used in insurance quotation by the Life Insurance Association of Singapore and have some questions on your mind.

Here is the list of FAQs that LIA Singapore prepared on the matter.

LIFE INSURANCE INDUSTRY TO REVISE THE INVESTMENT RETURNS

ASSUMED FOR SALES ILLUSTRATION (W.E.F. 1 JULY 2013)

FREQUENTLY ASKED QUESTIONS

1. Why is the investment returns used in the Participating (“Par”) products' Benefit Illustration reduced?

With effect from 1 July 2013, the LIA has adopted a set of lower investment returns - 4.75% p.a. and 3.25% p.a. – for use in the Benefit Illustrations for Singapore-dollar denominated Participating (“Par”) policies. This is a reduction from the 5.25% p.a. and 3.75% p.a., which were in use before 1 July 2013.

The set of lower rates used in the illustration reflects the current low interest rate environment.

These two rates are used purely for illustrative purposes and do not represent upper and lower limits of the investment performance of the Participating (“Par”) Fund. The change in illustration will not affect the actual values of both existing and future Par policies.

The actual returns you can receive from your policy will depend on the actual experience of the Par Fund.

2. How are the investment returns used in Benefit Illustration determined?

The investment returns used in the Benefit Illustration of Par products are determined after considering the views of LIA member companies on a number of factors, including the typical investment mix of asset classes that Par Funds invest in (such as equities, bonds and property) and the long-term returns on each asset class. Long-term return expectations are in turn determined taking into account historical asset class performance and global economic outlook.

Going forward, these returns used in illustration will be reviewed on an annual basis to ensure its ongoing relevance and appropriateness.

3. When was the last time the investment returns used in Benefit Illustration revised?

The last revision of the investment returns used in Benefit Illustration was in 2002 where the maximum illustration interest rate was reduced from 6% p.a. to 5.25% p.a.

4. How frequent will the investment returns used in Benefit Illustration be reviewed and revised?

The LIA will review the investment returns used in Benefit Illustration annually.

Projected investment returns used in insurance quotation

The life insurance industry in Singapore is revising the investment returns assumed for benefit illustration in insurance sales quotations with effect from 1 July 2013, the Life Insurance Association of Singapore announced. 

All the life insurance companies will adopt a set of lower investment returns - 4.75% p.a. and 3.25% p.a. - for use in the benefit illustrations for Singapore-dollar denominated Participating (“Par”) insurance policies. This is a reduction from the 5.25% p.a. and 3.75% p.a. used before 1 July 2013. Participating policies are those that have a share of the allocations of the Participating (“Par”) Fund.

The benefit illustration is meant to illustrate the level of policy benefits assuming the Par Fund earns a certain level of investment returns.

This new set of lower rates used in the benefit illustration reflects the current low interest rate environment.

These two rates are used purely for illustrative purposes and do not represent upper and lower limits of the investment performance of the Par Fund.

Should I buy endowment insurance plans?

Wondering whether you should buy endowment insurance plan from your insurance adviser or agent?

First of all, remember, always know what are the different types of insurance products available and what purposes they serve. 

(See: What are the different types of insurance products available in Singapore?

I am looking to buy insurance in Singapore. What are the factors I need to consider?)

An endowment insurance product serves primarily as a savings and wealth accumulation vehicle. While it usually comes with some sum assured and insurance protection, they are relatively low for the same premiums paid compared to whole life insurance or term insurance products. 

What happens if an insurance company goes bankrupt in Singapore?

Will an insurance company go bankrupt? I guess you can never tell now in such an uncertain world where anything can happen.


So what happens if an insurance company does go bust? You'd be happy that there's something known as Policy Owners' Protection Scheme.


Here's what the information from the Life Insurance Association of Singapore's website. Here are some of the pointers to note:

Difference between Medical insurance and Critical Illness insurance?

If I have a medical insurance plan, do I still need a critical illness insurance cover?
Is medical insurance the same as critical illness insurance?


These are some of the common questions and confusion regarding insurance plans for illnesses.


Hope the below clears it up:

Singaporeans Grossly Underinsured

How much insurance cover is enough and how do you determine the right amount of insurance to buy?
You may want to check out 
How much insurance coverage and sum assured is enough? 
to determine the magic figure.


You may also want to check out how and with what products can you work towards sufficient cover for yourself.
What are the different types of insurance products available in Singapore?




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Studies show Singaporeans grossly underinsured - by Jo-ann Huang as read on channelnewsasia.com

SINGAPORE: Insurance is all about protecting against the unforeseen but studies have shown that Singaporeans are 11 times underinsured.

She has 3 policies but no coverage article

A few key points to note if you came across the article.


Critical Illnesses definitions standardized by the Life Insurance Association of Singapore and General Association of Singapore

To avoid a situation like this, you may want to consider 


Prudential's PruEarly Stage Crisis Cover which is a insurance plan to cover illnesses before the critical illness stage.
May want to consider it to cover the gap for your insurance financial planning

Disclaimer

PRUearly Stage Crisis Cover

Should a critical illness strike, the earlier it is diagnosed, the easier it is to manage and the higher the chances of a full recovery. PRUearly stage crisis cover offers financial support right from the early stages of critical illnesses.

Covering a broad and extensive list of illnesses, PRUearly stage crisis cover helps reduce the financial burden resulting from selected early stage critical illnesses - and make it easier for you to concentrate on a full recovery. 

The first insurance policy of its kind to cover selected complications arising from diabetes, PRUearly stage crisis cover also offers additional reassurance with a $3,000 death benefit. 

Future premiums are waived after the first claim is made under the 50% Severity Payout.

Key Benefits

• Wide coverage with as many as 70 different medical conditions such as Cancer (at the non-invasive stage), chronic kidney diseases, severe asthma and severe Dementia
• Waiver of all future insurance premiums upon a successful claim under the 50% Severity Payout
• Allow second claim if the medical condition deteriorate or a different medical condition occur, PRUearly stage crisis cover will pay the balance of this benefit
• First insurance policy of its kind in Singapore to make payouts for selected diabetic complications. A payout of 20% of the sum assured will be made upon diagnosis of one of the covered Diabetic complications, up to a limit of S$20,000. Diabetic complicationscovered include Diabetic Retinopathy, Diabetic Nephropathy or amputation of part of limb due to gangrene
• Offers a one time claim for Angioplasty and other Invasive Treatment for Coronary Artery of 10% of the Sum Assured, up to a maximum limit of S$10,000

PRUearly stage crisis cover is available as a standalone product (PRUearly stage crisis cover) or supplementary benefit (Early Stage Crisis Cover).

Early Stage Medical Conditions (50% Severity Payout)	Intermediate Stage Medical Conditions (100% Severity Payout)	Critical Illnesses (100% Severity Payout)
Moderately severe Alzheimer's Disease or Dementia	-	Alzheimer's Disease/ Severe Dementia
Reversible Aplastic Anaemia	-	Aplastic Anaemia
Bacterial Meningitis with full recovery	-	Bacterial Meningitis
Surgical removal of pituitary tumour or Surgery for subdural haematoma	-	Benign Brain Tumour
Loss of sight in one eye	Optic Nerve Atrophy with low vision	Blindness (Loss of sight)
Coma for 48 hours	Severe Epilepsy for Coma for 72 hours	Coma for 96 hours
Keyhole coronary bypass surgery or Coronary Artery Arthrectomy or Transmyocardial Laser Revascularisation or Enhanced External Counterpulsation Device Insertion	-	Coronary Artery By-pass Surgery
Partial loss of hearing or Cavernous sinus thrombosis surgery	Cochlear implant surgery	Deafness (Loss of hearing)
Encephalitis with full recovery	-	Encephalitis
Liver surgery	Liver Cirrhosis	End stage Liver Failure
Severe Asthma or insertion of a Veno-cava filter	Surgery removal of one lung	End stage of Lung Disease
Hepatitis with Cirrhosis	-	Fulminant Hepatitis
Cardiac pacemaker insertion or Pericardectomy	Cardiac defibrillator insertion or Early Cardiomyopathy	Heart Attack
Percutaneous Valve Surgery	-	Heart Valve Surgery
HIV due to Assault, Organ Transplant or Occupationally Acquired HIV	-	HIV Due to Blood Transfusion and Occupationally Acquired HIV
Surgical removal of one kidney or Chronic Kidney Disease	-	Kidney Failure
Loss of Speech due to neurological disease	-	Loss of Speech.
Moderately severe burns	-	Major Burns
- Carcinoma in situ of specified organs - Early Prostate Cancer - Early Thyroid Cancer - Early Bladder Cancer - Early Chronic Lymphocytic Leukaemia - Early Melanoma	Carcinoma in situ of specified organs treated with Radical Surgery	Major Cancers
Facial reconstructive surgery or Spinal cord injury	-	Major Head Trauma
Small bowel transplant; or Corneal transplant	-	Major Organ / Bone Marrow Transplantation
Early Motor Neurone Disease	-	Motor Neurone Disease
Early Multiple Sclerosis	-	Multiple Sclerosis
Moderately severe Muscular Dystrophy	-	Muscular Dystrophy
Moderately severe Parkinson's Disease	-	Parkinson's Disease
Early Pulmonary Hypertension	Secondary Pulmonary Hypertension	Primary Pulmonary Hypertension
Early Progressive Scleroderma	Progressive Scleroderma with CREST syndrome	Progressive Scleroderma
Brain aneurysm surgery or Cerebral shunt insertion	Carotid artery surgery	Stroke
Minimally invasive surgery to Aorta or Large asymptomatic aortic aneurysm	-	Surgery to the Aorta

Table: Medical conditions covered under Special Benefit

	Claimable percentage of sum assured	Maximum limit
Angioplasty and other Invasive Treatment for Coronary Artery	10%	$10,000
Diabetic complications include Diabetic Retinopathy, Diabetic Nephropathy or amputation of part of limb due to gangrene.	20%	$20,000

Life Assured	Premium Term	Premium per day6
Male non-smoker age 30 years old at next birthday	45 years	$1.37
Female non-smoker age 30 years old at next birthday	45 years	$1.34
Male non-smoker age 40 years old at next birthday	35 years	$2.20
Female non-smoker age 40 years old at next birthday	35 years	$2.35

For more information, refer to the official Prudential Assurance PruEarly Stage Crisis Cover website.

Disclaimer