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
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.
10 comments:
Well it must have been pretty shocking for Lee indeed, who must have succumbed to the costs.
Good day !.
You re, I guess , perhaps curious to know how one can reach 2000 per day of income .
There is no need to invest much at first. You may start to get income with as small sum of money as 20-100 dollars.
AimTrust is what you thought of all the time
The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with offices everywhere: In USA, Canada, Cyprus.
Do you want to become an affluent person?
That`s your choice That`s what you desire!
I feel good, I started to get real money with the help of this company,
and I invite you to do the same. If it gets down to choose a proper partner who uses your money in a right way - that`s it!.
I make 2G daily, and my first investment was 500 dollars only!
It`s easy to get involved , just click this link http://vadodabym.builtfree.org/iqijes.html
and go! Let`s take this option together to feel the smell of real money
Hi !.
You re, I guess , probably very interested to know how one can reach 2000 per day of income .
There is no need to invest much at first. You may start to receive yields with as small sum of money as 20-100 dollars.
AimTrust is what you need
The firm incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.
Do you want to become a happy investor?
That`s your choice That`s what you desire!
I`m happy and lucky, I began to get real money with the help of this company,
and I invite you to do the same. It`s all about how to select a proper companion utilizes your money in a right way - that`s the AimTrust!.
I take now up to 2G every day, and my first deposit was 1 grand only!
It`s easy to get involved , just click this link http://pimidydamy.virtue.nu/ojufim.html
and lucky you`re! Let`s take our chance together to become rich
Hi !.
You re, I guess , perhaps very interested to know how one can make real money .
There is no initial capital needed You may begin to receive yields with as small sum of money as 20-100 dollars.
AimTrust is what you need
The company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with offices around the world.
Do you want to become an affluent person?
That`s your chance That`s what you really need!
I feel good, I started to get real money with the help of this company,
and I invite you to do the same. It`s all about how to select a correct companion who uses your money in a right way - that`s the AimTrust!.
I earn US$2,000 per day, and my first investment was 500 dollars only!
It`s easy to join , just click this link http://ijeluhyz.freecities.com/lymabup.html
and lucky you`re! Let`s take this option together to become rich
Good day !.
You may , perhaps curious to know how one can collect a huge starting capital .
There is no initial capital needed You may commense earning with as small sum of money as 20-100 dollars.
AimTrust is what you need
The firm represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.
Do you want to become an affluent person?
That`s your chance That`s what you desire!
I feel good, I began to get income with the help of this company,
and I invite you to do the same. It`s all about how to choose a correct partner who uses your funds in a right way - that`s it!.
I earn US$2,000 per day, and my first deposit was 1 grand only!
It`s easy to start , just click this link http://gahyhoje.wtcsites.com/idujas.html
and go! Let`s take this option together to feel the smell of real money
Hello everyone!
I would like to burn a theme at this forum. There is such a nicey, called HYIP, or High Yield Investment Program. It reminds of ponzy-like structure, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.
For quite a long time, I earn money with the help of these programs.
I don't have problems with money now, but there are heights that must be conquered . I get now up to 2G a day , and I started with funny 500 bucks.
Right now, I'm very close at catching at last a guaranteed variant to make a sharp rise . Visit my web site to get additional info.
[url=http://theblogmoney.com] Online investment blog[/url]
Hello. And Bye.
hi ppl. I'm really into shoes and I was digging allowing for regarding that singular model. The prices due to the fact that the sneakers are around 200 pounds everwhere. But finally I bring about this locate selling them for the benefit of half price. I absolutely like these [url=http://www.shoesempire.com]gucci sneakers[/url]. I will probably order these. what is your opinion?
Hi,
I am a web master of some financial sites.
I was going through your blog:- http://getprotection.blogspot.com/
and witnessed many a great features on finance with lots of informations.
I have some quality financial websites on Debt, Loan, Insurance,
budgeting and bankruptcy with good PR, and very less OBL to maintain
its quality and we are open to the following linking ways with your
website:
1) 3 ways Link Exchange
2) Article Exchange
3) Banner Exchange
It would be great to work with you. A bridge built between two
legitimate & reputable site would be beneficial for the visitors & as
well as for us.
Please let me know about your thoughts at edward.josse@gmail.com,
and I am open to accept any kind of suggestion from you.
Looking forward to your positive reply. Have a nice day!
This is quite an important post. I think that the health costs can sometimes be very high, so I it is good to have insurance to cover it. Thanks for sharing.
Post a Comment