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:

MediShield Life Coverage for All Singapore Residents to start on 1 November 2015

MediShield Life coverage will start on 1 November 2015.

Below is the full press release from the Ministry of Health, Singapore, with the link to the MediShield Life Welcome Booklet at the end. 

If you still do not know what is MediShield Life, here's a quick update to get you up to speed: What I need to know about MediShield Life and MediShield Life Premiums?

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1. From 1 November 2015, all Singapore Citizens (SCs) and Permanent Residents (PRs) will be covered by MediShield Life and benefit from better protection against large healthcare bills for life, regardless of their age or health conditions.  This is a major step in strengthening Singapore’s healthcare safety net and providing Singaporeans with peace of mind for high medical bills. 

MediShield Life Coverage and Benefits to start from 1 November 2015 

2. When MediShield Life is launched on 1 November 2015, its higher benefits and lifelong protection will kick in immediately for all SCs and PRs, for hospital admissions on or after the date.  This includes those who are not covered by insurance today (due to pre-existing conditions, or exceeded the maximum coverage age of 92), and who will now be able to benefit from MediShield Life protection.   For those whose existing MediShield or Integrated Shield Plan policies are not yet due for renewal, they will also start enjoying the enhanced MediShield Life benefits from 1 November 2015, but their MediShield Life premiums will only be payable on their next policy renewal date.  

MediShield Life Welcome Booklet for All Households 

3. All Singapore households will receive a MediShield Life Welcome Booklet in August, as part of the Ministry’s ongoing efforts to explain and communicate this important universal scheme to the public, ahead of the launch of MediShield Life.  The B5-sized booklet in four official languages will provide information on what MediShield Life is, its benefits, premiums and subsidies, as well as how Integrated Shield Plans work. 

4. Each MediShield Life Welcome Booklet will also come with a soft fridge magnet with the MediShield Life hotline and website address.  Please refer to Annex A and Annex B for images of the booklet and magnet.  An online copy of the booklet and more information on MediShield Life can be found on www.medishieldlife.sg. 

What I need to know about MediShield Life and MediShield Life Premiums?

If you have not already read it yet, a comprehensive FAQ on MediShield Life has been written. So comprehensive there are 101 questions! - Straits Times' "MediShield Life: Answers to 101 frequently asked questions".

But, "What if I don't have the time or patience to read through 101 questions?". Luckily for you, here is a list of essential 18 on MediShield Life that should serve you just fine.

1. What is MediShield Life?

It is a new compulsory basic health insured scheme administered by the Government’s Central Provident Fund Board that will help all Singaporeans and permanent residents to pay hospitalization bills. It will take effect by the end of this year, but there is no fixed date yet.

2. What are the differences between MediShield and MediShield Life?

The key differences are:

-   - MediShield provides coverage up to age 92. MediShield Life covers until death.

-   - MediShield Life offers higher claim limits for hospital bills and outpatient cancer treatments like chemotherapy.

-   - MediShield Life covers most pre-existing medical conditions like congenital problems or HIV

3. How do I get MediShield Life coverage and how do I opt out if I don’t want it?

You can’t opt out. You don’t need to apply since the scheme is compulsory. All Singaporeans and permanent residents will be covered from the time they are born to when they die.

4. What treatment and medications aren’t covered by MediShield Life?

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?

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.

Selling term insurance via online platform in Singapore

Are financial advisers allowed to sell term life insurance to the general public via online platform and without providing advice to the customer?


Term life insurance may be made available online to individuals who wish to buy such insurance, without the need for advice. However, a customer should still seek advice from a financial adviser to supplement term life insurance coverage, or on more complicated insurance plans.

Monetary Authority of Singapore (MAS) takes the view that financial advisers should provide customers with clear and relevant information about the product so as to enable the customer to make an informed decision. 

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.

Aplastic Anaemia - Common Critical Illness Definition

Definition of aplastic anaemia for critical illness insurance claims in Singapore



Chronic persistent bone marrow failure which results in anaemia, neutropenia and thrombocytopenia requiring treatment with at least one of the following:


• Blood product transfusion;
• Marrow stimulating agents;
• Immunosuppressive agents; or
• Bone marrow transplantation.


The diagnosis must be confirmed by a haematologist.

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Singapore Insurance Planning FAQs

Singapore Insurance Planning Frequently Asked Questions

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


How much insurance coverage and sum assured is enough?

If I have comprehensive medical insurance cover, do I still need a insurance policy with major illness protection?

Can I buy more than one life insurance policy in Singapore?


Can I get online insurance quotes for Singapore's life insurance policies?


What is the difference between critical illness and terminal illness in Singapore?


What is the difference between medical insurance and critical illness insurance?


What are the definitions of critical illnesses in Singapore?


How to cancel a recently bought life insurance policy if I regretted my decision?


I want to buy insurance in Singapore. What are the factors to consider?


Do I need a personal accident insurance policy if I already have a life insurance policy?

What is the easiest way to save money on my insurance?

Have a question on Insurance Planning which is not answered here?
Contact Us.

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What is the easiest way to save money on my insurance?

The simplest way to save money on insurance?


The simplest way you can save money on your insurance policies is to change the frequency of your insurance premium payment. 


Instead of paying for your policies monthly, you should opt to pay for your insurance policies on a yearly basis if possible. 
For most insurance plans, there are usually cost savings if you choose to pay annual premiums. 

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Do I need a personal accident insurance policy if I already have a life insurance plan?

Wondering if a personal accident insurance policy is still needed on top of your life insurance?


As the name suggests, a personal accident policy pays out the sum assured only if it is due to an accident. Depending on the specific policy, the coverage could include death or total & permanent disability due to accident and dismemberment benefits due to accident.
Riders such as reimbursement of medical expenses and hospital cash or income replacement cash benefits may be added to the policy. 


Even if you already have a life insurance policy, you may want to consider a personal accident cover for the following reasons:


1) Total sum assured: Personal accident is an affordable way to boost up total insurance sum assured. (Note that sum assured is paid out only if it is due to an accident.)


2) Dismemberment benefits: A life insurance plan generally pays out only for dismemberment of two limbs under total & permanent disability benefits. A personal accident policy with dismemberment benefit will payout for dismemberment depending on a schedule of severity.




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Common Definition for Critical Illness Insurance - Kidney Failure

Definition of kidney failure for critical illness insurance claims in Singapore.

Chronic irreversible failure of both kidneys requiring either permanent renal dialysis or kidney transplantation.

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

What to consider when you want to buy life insurance in Singapore?


As you are shopping around for insurance quotes and insurance companies, these are a few basic factors you need to consider before you make any decision.


How much life insurance cover do you need?
You can refer to a related post to find out just how much cover and sum assured is enough. The calculations to determine the insurance cover needed include financial obligations, financial support, financial gift and replacement of income.


How long do you need the insurance for?
Knowing how long you need the protection of insurance for will play a part in knowing what types of life insurance products may be suitable. Do you need the insurance cover for a specific number of years only such as for a specific loan payment period or do you prefer the insurance protection for the whole of your life?


What is your budget for insurance premiums?
Knowing how much sum assured and how long you need the coverage for is one thing but your ability to pay the insurance premiums also need to be considered. For example, if you require a specific sum assured but your budget is limited, you may need to buy a term life insurance policy to get the required insurance cover even if you may prefer a insurance policy that can accumulate cash values.


What types of insurance policies should you buy?
Every plan has its pros and cons, find out more about the four main types of life insurance products in Singapore before you make a decision to see which is suitable to your financial needs and wants. The four main types of insurance policies are whole-life, term life, endowment and investment-linked.

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I bought a life insurance policy recently. What can I do if I regretted the decision?

How to cancel a life insurance policy bought recently if I feel I made a mistake?


For life insurance plans bought in Singapore, all local insurance companies provide what is known as a "14-day free look period". The 14 days start only from the day you receive your insurance policy documents and not the policy start date (which will be earlier than the day you receive the policy documents).


Upon receiving your policy documents, you should review it again to determine if it meets your needs. If for any reason you would like to cancel the policy, such as it does not meet your needs or you felt pressurized to make the purchase, all you have to do is to give the life insurance company a simple written notice of cancellation.


The insurer is supposed to terminate the policy and give you a refund, no questions asked. 


Note that the refund provided may be less fees such as medical examinations and investment losses if the price of units fall for investment-linked products.




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Common Definition for Critical Illness Insurance - Coronary Artery By-pass Surgery

Definition of coronary artery by-pass surgery for critical illness insurance claims in Singapore.

The actual undergoing of open-chest surgery to correct the narrowing or blockage of one or more coronary arteries with bypass grafts. This diagnosis must be supported by angiographic evidence of significant coronary artery obstruction and the procedure must be considered medically necessary by a consultant cardiologist.

Angioplasty and all other intra arterial, catheter based techniques, 'keyhole' or laser procedures are excluded.

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Common Definition for Critical Illness Insurance - Stroke

Definition of stroke for critical illness insurance claims in Singapore.


A cerebrovascular incident including infarction of brain tissue, cerebral and subarachnoid haemorrhage, cerebral embolism and cerebral thrombosis. This diagnosis must be supported by all of the following conditions:

• Evidence of permanent neurological damage confirmed by a neurologist at least 6 weeks after the event; and
• Findings on Magnetic Resonance Imaging, Computerised Tomography, or other reliable imaging techniques consistent with the diagnosis of a new stroke.

The following are excluded:

• Transient Ischaemic Attachs;
• Brain damage due to an accident or injury, infection, vasculitis, and inflammatory disease;
• Vascular disease affecting the eye or optic nerve; and
• Ischaemic disorders of the vestibular system.

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