Disability shall mean the inability of the Policyholder to perform at least 3 of the following Activities of Daily Living, even with the aid of special equipment, and always to require the physical assistance of another person throughout the entire activity.
Washing : The ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash by other means.
Dressing : The ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical or medical appliances.
Feeding : The ability to feed oneself food after it has been prepared and made available.
Toileting : The ability to use the lavatory or manage bowel and bladder function through the use of protective undergarments or surgical appliances if appropriate.
Mobility : The ability to move indoors from room to room on level surfaces.
Transferring : The ability to move from a bed to an upright chair or wheelchair, and vice versa.
Definition of Pre-existing Disability
Pre-existing Disability are excluded, i.e. suffering from the Disability as defined above before your ElderShield Policy's commencement date. For persons who are auto-covered, disability caused solely by accidents that occur during the 90-day opt-out period shall not be regarded as Pre-existing Disability.
Tuesday, September 16, 2008
Eldershield - is it worth insuring?
Dear Mr Tan,
I have just received a letter asking me to subscribe for Eldershield. Can I know is it worthwhile to subscribe to it or not. I am covered with enhanced Incomeshield, term insurance, accident and critical illness plan.
REPLY
It depends on the cost and benefit of the Eldershield plan.
I suggest that you take the annual premium and accumulate it at interest rate of 4% per annum (which is what you now earn on your special account).
The chance of making a claim before age 75 is quite low. The chance of making a claim after 75 is probably between 30% to 50% (which is just my guess).
Perhaps, you can see if it make sense to insure, or carry the risk on your own.
I have just received a letter asking me to subscribe for Eldershield. Can I know is it worthwhile to subscribe to it or not. I am covered with enhanced Incomeshield, term insurance, accident and critical illness plan.
REPLY
It depends on the cost and benefit of the Eldershield plan.
I suggest that you take the annual premium and accumulate it at interest rate of 4% per annum (which is what you now earn on your special account).
The chance of making a claim before age 75 is quite low. The chance of making a claim after 75 is probably between 30% to 50% (which is just my guess).
Perhaps, you can see if it make sense to insure, or carry the risk on your own.
Monday, September 15, 2008
Eldershield - benchmark figures
A male at 40 pays $175 for 25 years for the lifetime coverage of Eldershield. If this person opts out of Eldershield and keeps the money in CPF special account to earn 4% a year, the premium will accumulate to $11,220 at age 75.
The chance of making an Eldershield claim before age 75 is quite small, maybe less than 5%. The chance of making a claim after 75 is perhaps less than 30% (but it may increase in the future).
Eldershield pays $400 a month for up to 72 months. However, most people who make the claim do not live for 72 months. I guess that the average payout could be (say) 48 months. This gives $19,200.
If the chance of making a claim is 30%, the average payout is $5,760. This represents a claim ratio of 51%. This claim ratio is quite fair.
However, if the chance of making a claim during the lifetime is less than 30%, then it is better to self-insure, rather than buy Eldershield.
A female pays a premium of $218. This is 25% higher than for a male. The chance of a female making an Eldershield claim is higher than for a male.
I do not have the latest figures on the claim rate. Perhaps, the Ministry of Health may release this figure in the future?
The chance of making an Eldershield claim before age 75 is quite small, maybe less than 5%. The chance of making a claim after 75 is perhaps less than 30% (but it may increase in the future).
Eldershield pays $400 a month for up to 72 months. However, most people who make the claim do not live for 72 months. I guess that the average payout could be (say) 48 months. This gives $19,200.
If the chance of making a claim is 30%, the average payout is $5,760. This represents a claim ratio of 51%. This claim ratio is quite fair.
However, if the chance of making a claim during the lifetime is less than 30%, then it is better to self-insure, rather than buy Eldershield.
A female pays a premium of $218. This is 25% higher than for a male. The chance of a female making an Eldershield claim is higher than for a male.
I do not have the latest figures on the claim rate. Perhaps, the Ministry of Health may release this figure in the future?
Term insurance - is the premium proportional?
Dear Mr. Tan,
Thank you so much for putting so much useful information on your website. I almost bought a whole life insurance policy from my financial planner--but luckily thanks to finding your site I realized that it doesn't really make sense to do so. I'm in the process of reading every article in your website.
I have a question about the following page on your website: http://www.tankinlian.com/faq/term.html
In it you stated that the annual premium for $100 000, 30-year old male, covered for 30 years, are $305 for level, and $115 for decreasing.
My question is: how linear is this guideline? Does it mean that to get if the sum is $200 000, the premium should be $610 and $230, respectively? Does it get cheaper if the sum assured is more than 1 million? Also, what if I want the coverage to last 35 years (until I'm 67), instead of 30 years?
Thank you very much in advance, and thanks again for your blog and your website.
REPLY
Usually, the premium rate is in straight proportion to the sum assured. However, it depends on the practice of each insurance company. It is best to ask a few insurance companies to quote you the rates for various sum assured.
Here are some companies that you can call
http://www.tankinlian.com/faq/termd.html
Thank you so much for putting so much useful information on your website. I almost bought a whole life insurance policy from my financial planner--but luckily thanks to finding your site I realized that it doesn't really make sense to do so. I'm in the process of reading every article in your website.
I have a question about the following page on your website: http://www.tankinlian.com/faq/term.html
In it you stated that the annual premium for $100 000, 30-year old male, covered for 30 years, are $305 for level, and $115 for decreasing.
My question is: how linear is this guideline? Does it mean that to get if the sum is $200 000, the premium should be $610 and $230, respectively? Does it get cheaper if the sum assured is more than 1 million? Also, what if I want the coverage to last 35 years (until I'm 67), instead of 30 years?
Thank you very much in advance, and thanks again for your blog and your website.
REPLY
Usually, the premium rate is in straight proportion to the sum assured. However, it depends on the practice of each insurance company. It is best to ask a few insurance companies to quote you the rates for various sum assured.
Here are some companies that you can call
http://www.tankinlian.com/faq/termd.html
Is all landbanking a scam?
Comment posted in www.theonlinecitizen.com
Is all Landbanking a scam? Every case in the UK so far has proved to be.
In the UK you can say Land Banking is a scam and the papers often do because there are many thousands of cases of good people losing all their money. There are no audited cases of end plot investors being successful . One of the biggest property booms ever just ended at the end of 2007 in the UK so you would expect that there should have been some plot based land banking success in 2006 and 2007 but there was none.
Many of the Land Banking companies with similar names to those now operating in Singapore offering UK plots have been shut down in the UK by the FSA and are NOT allowed to offer those plots to people living in the UK.
As a Brit let me say this. Imagine I was offered plots on the Padang in Singapore by a UK company that was not allowed by MAS to operate in Singapore. Would you Singaporeans suggest it as a good investment ? It is open land in the middle of the city. Ideal for building on and Singapore is short of building space. Would you expect the Singapore government to protect a stupid foreigner who made that investment ?
Dont invest in what you dont understand.
Do you hear the people sing
This is my favorite song from Les Miserables. It was during a time when the poor people of France were oppressed, and they wanted a new life. Maybe, this reflects our current times?
http://www.youtube.com/watch?v=x6-5g78Nr6Q
http://www.youtube.com/watch?v=x6-5g78Nr6Q
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