Stress and uncertainty with Incomeshield

Hi Mr. Tan,

I would like to seek you advice on my Incomeshield. Previously, I was still covered under Medishield. I underwent an operation to remove X and Y. Later, I switched to Incomeshield. I declared the operation but forgot about the Y and only indicated X. I was accepted with no exclusion term.

Recently I found out about the omission and make another declaration. I was excluded from any claim relation to and/or arising out of Y.

I called CPF to check if I were to revert back to Medishield, would Y be excluded? They were not able to answer it. I called NTUC, they are not able to advise whether the basic component will still cover that.

At the point of my operation, I was covered under Medishield. What is the possibility that CPF will exclude this clause. I'm in dilemma as to whether I should continue with NTUC or go back to CPF.

REPLY
I believe that Incomeshield is required (by Ministry of Health) to cover you for Y for the Medishield limits under Medishield. You can confirm this point with NTUC Income. If this is the case, you can lodge a complaint about giving you a lot of stress and uncertainty.

Simple Financial Planning

I wish to give this advice to any person on your financial planning:

> buy a 20 year term assurance for 5 to 10 years of your income
> ask the insurance company to quote the rate for your comparison
> do not talk to an insurance agent
> do not invest in any whole life, endowment or investment linked policy
> make monthly savings (of 15% of your earnings) in a bank
> when the saving reach $3,000, buy 1,000 units of STI ETF.

Read these FAQs:
Financial planning for the young
http://www.tankinlian.com/faq/fptips.html
Personal insurance:
http://www.tankinlian.com/faq/choice.html
Buy Term Insurance directly:
http://www.tankinlian.com/faq/termd.html

If you talk to an insurance agent, be prepared for the agent to "convince" you to buy a critical illness policy or a term to 100 years (which is a whole life policy by another name). Say good-bye to more than $1,000 of your savings (as it will be used to pay commission to the agent.