In a recent article by the Straits Times, it is reported that 1.5 million people would face premium hikes for their Integrated Shield plans when the premium freezing period is lifted on 31 Oct 20161. About 60% of policy holders are insured for private hospital stays. This is a significant concern as a number of people may have to review their current healthcare policies, to determine if they can still afford to fund them throughout their retirement years.
After running our previous article, “3 Terrifying Facts About Critical Illness, You (Probably…) Didn’t Know”, many people have asked us how to go about covering for Critical Illness. Some common concerns are, how to cover out-of-pocket medical expenses, and how to help cover lump sum costs for certain critical illness treatments.
How can you cover for Critical Illness (CI)?
Jonathan, age 35, is a non-smoker. He has been looking around for critical illness coverage to help offset any potential loss of income during the recovery period and hefty medical bills. The most direct way to obtain coverage, is to buy a critical illness plan.
Table 1: Critical Illness plans (e.g. Manulife ManuCompleteCare, NTUC Income VivoCare 100, Tokio Marine TM EarlyCare)
Product |
Sum Assured |
Premium Term |
Annual Premiums Paid |
Estimated Total Commission Received from Insurer |
Savings You Get Through Insurance@FSM |
Manulife ManuComplete Care to Age 75 |
$100,000 |
40 Years |
$1,977.00 |
$3,202 (approx. $1,186 first year commission) |
$960 |
NTUC Income VivoCare 100 |
$50,000 (with Minimum Protection Benefit of $100,000 till age 65) |
25 Years |
$1,923.95 |
$2,501 (approx. $1,539 first year commission) |
$750 |
Tokio Marine TM EarlyCare to Age 75 |
$100,000 |
39 Years |
$1,993.00 |
$3,163 (approx. $1,843 first year commission) |
$949 |
*Premiums reflected on the table are tabulated on 28th October 2016.
#This is a simple illustration that does not take into account client risk profiles, financial objectives and other types of commitment.
If Jonathan is looking for a comprehensive coverage which includes early stage critical illness, he can utilize the above plans.
From table 1, he may want to insure himself with a $100,000 sum assured coverage, which comes at an annual premium of $1,977 (using ManuComplete Care to age 75). Based on Insurance@FSM’s 30% commission rebate, Jonathan will enjoy an estimated total savings of $960.
However, if Jonathan is not comfortable with ending his coverage at age 75, he may look at NTUC Income VivoCare 100 which provides a minimum protection benefit of $100,000 sum assured till age 65, after which the coverage will lower to $50,000.
Some available plans on Insurance@FSM:
Manulife - ManuCompleteCare (Term), NTUC Income - VivoCare 100 (Whole Life), Tokio Marine - TM EarlyCare (Term)
With different plans available, comes the difficult task of choosing the right one for your financial needs. At Insurance@FSM, we have a team of professional investment advisers and specialists to help review and walk through with you the different plans that are available, so that you can make the best informed decision. Get the protection coverage you need today, contact our investment advisers at advisory@fundsupermart.com.
1Source: http://www.straitstimes.com/singapore/health/some-15-million-face-premium-hikes-when-moratorium-ends
Interested to learn more? Check out these articles:
3 Terrifying Facts About Critical Illness, You (Probably...) Didn't Know
To Your Insurance Agent, You Are Just a $4,000 Cash Cow!
Do You Know That Medical Inflation in Singapore is 15% now? Part 1 / Part 2 / Part 3