Insurance is an important element in one’s portfolio. You want to mitigate the risk of unfortunate events from happening and impacting your finances. The best way to do that is through insurance. But before you start searching and comparing insurance plans, here are four insurance plans you probably didn’t know you owned.
1. Medishield Life
Medishield Life is a health insurance plan that automatically covers all Singaporeans and PRs, regardless of whether you have any pre-existing conditions. Medishield Life premiums are deducted from your Medisave Account (MA).
Medishield Life pays for a proportion of large hospital bills and certain costly outpatient treatments like dialysis or chemotherapy. However, MediShield Life coverage is only for subsidised treatment in public hospitals and pegged to Class B2 or Class C wards. For higher class wards, Medishield Life payout will only make up for a small proportion of the bill.
Enhancing Your Medishield Life With An Integrated Shield Plan
One way which you can enhance your Medishield Life coverage is to buy an integrated shield plan with private insurers. Under the integrated shield plans, Class A/B1 wards in public hospitals or private hospitals can be included under the benefits.
These private insurers will provide additional medical coverage on top of what is covered under Medishield Life. You can compare the integrated shield plans here.
Benefits of Eldershield
Eldershield is an insurance scheme that protects you against the event of severe disability. The extent of disability is measured by your ability to successfully carry out at least three of the six activities of daily living (ADLs).
Upon an unfortunate event where you require long-term medical care for severe disability, Eldershield will pay you a monthly cash payout to cover your medical expenses. Eldershield will pay up to a maximum period of 72 months.
There are two schemes under Eldershield: Eldershield300 and Eldershield400. For Singaporeans and PRs who turned 40 before September 2007, you will be included in Eldershield300. The main difference between Eldershield300 and Eldershield400 is the:
- monthly cash payouts ($300 versus $400)
- maximum duration of benefits (60 months versus 72 months) and
Who are included in Eldershield?
For Singaporeans above the age of 40, you would have been automatically enrolled for Eldershield. Premiums will be deducted from your CPF MA. Three months before your 40th birthday, you would have received a package from one of the three private insurers that manage Eldershield for the Ministry of Health (i.e. Aviva, Great Eastern or NTUC Income).
Should I trigger the opt-out option for Eldershield?
One thing to note is that Eldershield is an opt-out scheme. Therefore, unless you choose to opt out of the scheme, you would be automatically included in the Eldershield scheme. By joining the scheme as an auto-inclusion, you do not have to undergo any medical underwriting. If you were to opt out of the scheme, re-joining the scheme will require medical underwriting.
Moreover, the chargeable premium is dependent on your age of entry into the scheme. If you choose to opt-out of the scheme, your premium will increase if you were to rejoin.
3. SAF Group Insurance (Group Term Life, Group Personal Accident)
Singaporean males might be familiar with this insurance if you served or are still serving national service (NS). This includes full-time national servicemen (NSFs), operationally ready national servicemen (NSmen), Regular members of the SAF and volunteers (SAF Volunteer Corps, NS Volunteers, SPF Voluntary Special Constabulary and Civil Defence Auxiliary Unit).
Since 1st July 2016, MINDEF and Ministry of Home Affairs (MHA) provides both term life and personal accident coverage for all those who have served national service through Aviva. The premiums are paid for by MINDEF/MHA for NSFs and cover up to $150,000 each (Term Life and Personal Accident).
Under the group insurance, Aviva also provides the option to allows NSFs to enhance coverage or add on additional riders like Living Care, Living Care Plus, Disability Income and Outpatient Medicare.
4. Dependants’ Protection Scheme (DPS)
For any working Singaporean or PRs above the age of 21, you would have been automatically included in the DPS. Similar to the Eldershield, DPS is also an opt-out scheme for Singaporeans and PRs.
Under the DPS, a maximum sum assured of $46,000 will be paid out if the insured life passes away or suffer from Terminal Illness or Total Permanent Disability. The DPS will provide coverage for up to 60 years old. Unlike Medishield Life and Eldershield, DPS is subject to medical assessment. For those who have a serious pre-existing condition, you might be deferred or declined coverage under DPS.