Insure against health costs

Lee Hui Chieh, Wed, Aug 08, 2007 The Straits Times

Everyone knows a horror story. A simple procedure turns into a nightmare of complications, inflating a hospital stay from days to months, and the cost in the process.

That was what happened to a Myanmar patient, Madam Daw Tin Nyunt, whose two-day stay in a private hospital stretched to 344 after a failed heart stent implant.

Her hospital bill also ballooned to $560,000, from the initial $15,227 estimate given by the hospital.

It won't happen to you?

Not if you make sure you are adequately covered, say financial advisers.

They say there are three kinds of insurance plans one should have to make sure that you won't be knocked for a loop by health-care costs: MediShield or enhanced Shield plans (to take care of hospitalisation costs), disability insurance and critical illness plans (to ensure you have an income if you can no longer work for a prolonged period).

MediShield and Shield plans

If you have nothing else, have at least a plan which will take care of hospitalisation costs.

The top must-have is MediShield or - its enhanced versions - the Shield plans, said Mr Eddy Cheong, 37, who heads independent financial advisory firm Providend's family office services.

MediShield is a basic hospitalisation and surgical plan that all Central Provident Fund (CPF) account holders have, unless they have opted out, or upgraded to a Shield plan.

After a revamp in 2005, MediShield now pays for 60 per cent of hospital bills, on average.

Shield plans, which are offered by private insurers and approved by CPF, have also improved. Some 'as charged' plans no longer place limits on the amount that can be claimed each day for hospital stay and procedures.

You can even buy a rider to pay for the portions of the bill that the policy doesn't cover, such as the deductible. So a carefully chosen 'as charged' plan could reimburse as much as the entire bill.

Policies are usually pegged to hospital ward classes. Choose a plan based on the type of services you expect, and what you can afford.

Mr Cheong's advice for buying MediShield or Shield plans: Go for the best you can afford.

He said: 'It's a question of insurability. If you go for something more high-level, you can downgrade any time you want.

'But if you start low, and want to upgrade later, there will be medical underwriting.'

Underwriting assesses whether a person is healthy enough to qualify for coverage.

Since you are more likely to develop medical conditions later in life that insurers would shy away from covering, such as high blood pressure and high cholesterol, you may not be able to upgrade to a better plan then. So, buy the best one you can afford while you are young and healthy.

There is another reason you should consider a better plan.

If the Government should introduce means testing in future - meaning giving subsidies based on actual income rather than on your choice of ward class - you could end up having to stay in a more costly ward than you wanted. A policy which is pegged to a lower class will not give you enough coverage.

Critical illness plans and disability insurance

Once you have your hospitalisation cover, think about that other big headache people face after becoming seriously sick - loss of income during the period of illness and recovery.

This is where disability insurance and critical illness plans come in.

While not as essential as Medishield or Shield plans, both should be taken up, Mr Cheong said.

They will pay out a sum of money to compensate for income loss, or to pay for nursing services, medical equipment and supplies and even tonics and alternative treatment such as traditional Chinese medicine.

Most insurance companies carry critical illness plans which cover a range of conditions. You should compare different plans from different companies to see which best suits your wallet.

Mr Cheong recommends insuring yourself for a payout of two to five years' annual income if you become critically ill.

The other should-have is disability insurance, which spans your working years. This will pay a monthly allowance if you become disabled and cannot work for a prolonged period.

This is different from total and permanent disability - much rarer and more serious - which is usually covered as part of a life insurance policy.

He advises insuring for a payout of 50 to 75 per cent of your current monthly salary.

Take note of the fine print though. Such plans lapse once you are out of work or out of the country for a certain period of time.

As you are nearing retirement age, you can then take up insurance for long-term care or disability, such as ElderShield.

Like taking the correct medication for a disease, buying the right insurance at the right time will cure your wallet's woes.

Which is the best Medishield or Shield plans should you choose? Drop us a line and get a free financial health check.

What are your CPF OA funds drawing 2.5% or 24% gains?

Assets managed by Singapore-based fund managers up 24% in 2006
By Yvonne Cheong, Channel NewsAsia | Posted: 04 July 2007 1443 hrs

SINGAPORE : Assets managed by fund managers based in Singapore grew by 24 percent last year to reach S$891 billion.

The figures were announced on Wednesday by Senior Minister Goh Chok Tong, who's also chairman of the Monetary Authority of Singapore (MAS).

Speaking at the Nomura Asia Equity Forum, he noted that total assets managed here have grown robustly over the last six years.

Sources of funds flowing into and through Singapore have diversified, with more money being channelled from South Asia and the Middle East.

Some 84% of the assets under management last year were sourced from outside Singapore.

Said SM Goh: "The critical mass of asset management activity in Singapore is continuing to grow. In 2006, 57% of total AUM (assets under management) in Singapore was invested in the Asian region.

"Fund managers continue to use Singapore as their regional headquarters because they see Singapore as a prime location to service clients, raise capital from the region as well as invest into the region and beyond."

Foreign asset managers contributed for the bulk of the growth last year.

The number of hedge fund managers jumped by 76 percent, managing over S$40 billion.

Asia drew a greater proportion of the funds invested, accounting for some 57 percent.

The strong performance of regional stock markets last year meant that equities were a favourite, making up 55 percent of total assets managed.

The senior minister also noted that global financial institutions could tap into Singapore's growing trade links with the Middle East.

"Interest has centred on servicing Asian investors - primarily on project financing and loan syndication. I encourage you to take a wider perspective - consider making commercial banking, corporate finance, capital market services and private banking part of your long term growth strategy. You can explore possibilities for collaborating with Singapore-based financial institutions with strong know-how," urged SM Goh.

Mr Goh also noted that political integration is progressing more slowly than economic integration, as Asia is more diverse - politically and culturally - compared to Europe.

However, he added the basic direction has been set and the deepening integration will create the conditions and framework for the private sector to grow. - CNA/ch/ls

What are your CPF OA funds drawing 2.5% or 24% gains?

If your CPF Ordinary Account (CPF OA) is still drawing 2.5% p.a. from CPF Board, then you are missing out on potential earnings for your nest egg when you retire!

Current Singapore-based fund managers are up 24%!!!! That is close to 9X earnings / interest of what you are getting now with CPF Board.

Take active action by talking to us on how we can maximize the growth of your investment or retirement funds!

Giving your Child a Headstart in Life!

The Sound Advice for the Month of June have come!
This month, we will be touching on the topic of "Giving your Child a Headstart in Life!"

Be it your clients, be it parents, soon-to-be parents, young or married couple or simply friends who want to know much more about the potential within a child, do invite them to this interesting and exciting seminar and be empowered with the following:

All parents wish for their children to grow up to be the best they can be.
However, have you ever wondered:
- Why as children grow up they become more rebellious and more difficult to talk to sometimes?
- What you as a parent can do to communicate better with your child?
- What your teenage children are really interested in today?
- What is the most appropriate way to give your child a headstart?
- Do you have in place the financial means to send your child to the tertiary institution he can qualify for?

Speakers:
Mr Gary Lee
Master Trainer
Adam Khoo Learning Technologies Group

Mr Patrick Wong
Associate Manager
Great Eastern Life Assurance Co. Ltd.

Details:
Date : 23rd June 2007 (Saturday)
Time : 2.30pm to 4.00pm
Venue : Great Eastern Centre
Centre for Excellence

Refreshments will be provided after the seminar.

Please RSVP, click here for contact number

More to get help to cope with disability

April 12, 2007

By Yap Su-Yin

NEW HOPE: With counselling and emotional support from the Society for the Physically Disabled's case management programme, Mr Jimmy Tan, seen here with his mother, Madam Ang, has become less demanding and is considering taking up vocational training. -- DESMOND WEE

HOUSEWIFE Ang Ah Poh, 62, was at a loss when her son Jimmy suffered a stroke at the age of 32 that impaired his movement.

Depressed and unable to cope, he refused to speak. His temper soured and his mother, his main caregiver, bore the brunt of it.

Those were tough times, recalled Madam Ang in Hokkien.

'I waited on him hand and foot after his stroke, but I'm old and it was difficult to manage,' she said.

Luckily, five months ago, the Society for the Physically Disabled (SPD) put Mr Jimmy Tan on its new specialised case management programme, which turned things around for both mother and son.

Madam Ang said: 'With counselling and emotional support, he has become less demanding and more independent and is even considering taking up vocational training in future.'

The society hopes to repeat this early success with those who need help to cope with the stress and challenge of living with disability.

Previously, there was no service providing continuous counselling, case management and early access to resources and services after discharge from hospitals, said SPD's head social worker, Ms Lim Lutin.

At present, hospital staff can link a disabled patient to services offered by different voluntary welfare organisations (VWOs), depending on his needs.

But it is done on an ad hoc basis and, since there is no follow-up, there is no way of knowing whether the patient is using these services.

'Some have told us they would not have felt so lost if someone had followed through that journey with them,' said Ms Lim. Her team has come across cases where disabled people have shut themselves away from society for years because they do not know how to get help.

'We need to be there to motivate the client to think about what to do with his life after his disability, because life has not ended yet,' said Ms Lim.

Catching them when they are 'in transit' between hospital and home is critical because this is a difficult period of adjustment, when both the patient and caregiver need plenty of support, she said.

So the SPD will put in place a system whereby hospitals or VWOs can refer such cases directly to SPD for 'holistic' help.

If necessary, SPD will link the clients - mostly adults - to other services it offers, such as therapy or vocational training.

More networking is needed though.

Currently, just Tan Tock Seng Hospital Rehabilitation Centre in Ang Mo Kio has tied up with SPD. It connects patients to SPD's 'specialised case management programme' about a week before patients who suffer physical disabilities are due for discharge.

Since last October, when the pilot programme was rolled out, the team has seen about a quarter of its annual target of 400 patients.

The pilot programme was given $300,000 in funding, to last two years, from the National Council of Social Service.

Said Madam Ang: 'For poor folk like me, unable to read English, having a social worker show me how I can help my child help himself makes me happy.'

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Make sure you have Critical Illness coverage

You should have at least a minimum coverage to protect against any critical illness. You can't determine the damage the illness will do to you. But you can ensure if any thing happens, you and your family are will have funds to get medical treatment and protect your income.

Don't be a burden to your family, click here to find out how you can get your free financial health check!

How to avoid being overcharged

April 5, 2007

Think doc has overcharged you? Turning to Case only recourse now

SMA decision was made with 'great reluctance'

Other professional groups relooking fee guidelines

# Before choosing a doctor, shop around if possible.

Both the Singapore Medical Association (SMA) and the Consumers Association of Singapore (Case) recommend that patients call a few clinics to get an idea of how much the market rate might be for a certain treatment.

# Check surveys of actual charges and bill sizes for an idea of what reasonable rates are.

The Health Ministry's website has information on average bill sizes for the 70 most common hospital procedures.

By the end of this year, it will also publish on its website the average bill size of treatment for chronic conditions like diabetes, high blood pressure, high cholesterol and stroke at private clinics.

Later this year, the SMA will publish results of its survey of charges in primary care clinics.

Next year, it will make public survey results for charges for more common procedures in private specialist clinics.

# Check the clinic's counter, signboards or brochures for consultation charges.

Doctors have been advised by the SMA to display them prominently.

# Whenever possible, ask your doctor beforehand for the expected range of costs for consultation, tests and treatment.

The SMA has recommended that doctors conduct financial counselling with patients