Buy basic Medishield for elderly parents

Dear Mr. Tan,

I'm looking at increasing and paying for the coverage for my parents.  They're both around 70 and are now on Incomeshield standard plan B (capped).  I'm hoping to upgrade to either plan A or P and possibly the enhanced plans (as-charged).  

I've done the sums and found the differences in total premiums up to age 85 is large, i.e. an additional $ 37,000 for each parent. While I'd still like to get them the best, I'm thinking whether this is money well spent, relative to the extra benefits they bring.  In particular, do one really need the extra benefit of as-charged vs. a capped plan? 

REPLY
Your findings is similar to what I said in my book, Practical Guide on Financial Planning. Medical insurance is very expensive for old people.

There is no need to buy expensive medical insurance for elderly people. They can get good medical attention in subsidised B2 and C ward, which is largely covered by basic Medishield. The quality of care in the subsidised wards is quite good. There is no need for you to pay $37,000 on expensive medical insurance, which provides medical attention that is not much better.

I have also changed to basic Medisheild (without any rider) to reduce the premium cost for my own medical insurance. 

Read practical Guide on Financial Planning

Competition and medical fees

There was a decision by the Competition Commission that the guidelines issued by the Singapore Medical Association on medical fees is anti-competition. I do not agree with their decision.

A sick patient is in no position to negotiate the fees with the doctor. If a doctor over-charges a patient for the consultation or medication, the patient may not be aware about it, or may not have any recourse. The guidelines provided by the Association is actually helpful to the patient to know what is the reasonable level of fees

I do not know what the Competition Commission wish to achieve by removing the guidelines. I think that the unintended consequence is that consumers will have to pay more in medical fees.

What are your views? Participate in this survey.

Tan Kin Lian

History of the internet

Read this article

Here is my personal perspective. I read about the Internet when I was at Harvard Business School in 1993. It was restricted to academic circles. My company launched its website in 1995 - among the first to do so in Singapore - thanks to my technical head of I.T. The result is history.

Cost of Living and Children

Read this blog.

My view
I have made many comments in the past that the biggest obstacle to raising children is the high cost of living. Parents do not wish to be burdened with this additional responsibility. In my view, the cost of raising children have to be largely borne by society and not be the parent.

Each family should be allowed to have two children, with the cost paid by society. We have to get away from the past practice of giving tax incentive, as it only benefits the high income earners, and they are not so keen to have children.

Video on Tangram Quiz

Watch this 2 min video.

Tangram book

Video on Shape Quiz

Watch this 2 min video

Shape Quiz book

Learn Sudoku (Logic9)

The http://www.easysearch.sg/ portal contains several useful applications. Go and visit it.

You can clickn on Logic9 (Sudoku) to learn how to play the popular game called Sudoku. The direct link can be found here:
http://projects.easyapps.sg/Logic9/

You can click on the various tabs to learn the tips of Sudoku.
When you are ready, you can click ono "Play" to play the game.

The direct link is here:
http://projects.easyapps.sg/Logic9/playLogic9.asp

You can select the game at level 1, 2, 3 or 4. You can also choose the differet types of symbols (apart from the usual numbers 1 to 9).

Enjoy. The Sudoku pocket book is available here.

DBS Internet banking transfer

It is easy to make an internet banking transfer with DBS Bank. You only need to come prepared.
I have made many transfers before and now come prepared with the token, mobile phone, screwdriver, pliers and torchlight (in case I have to open up my computer when the system hangs)..
I usually have to go through a complicated process to authenticate the payee and then to remove it. What is in the small white container next to the torchlight? Some headache ointment!

Financial Planning for a Retiree

Many retirees ask for my views about how to invest their savings. They are risk averse and not familiar with investing in the stock market. They find the interest rate paid on bank deposits to be too low.

The best investment is to keep the money in the CPF retirement account and earn an interest rate of 4% (plus bonus). For the other savings, they should invest in a low cost investment fund. Read more about it in my FAQ on "financial planning for a retiree) in www.tankinlian.com/ask.aspx. This FAQ also explains the type of insurance that is needed.

There is a talk being organised by FISCA on Saturday 28 August. It is suitable for retirees. Register at www.fisca.sg