Worry Free for Medical Expenses

[richwang]

I have performed some simple calculation for AIA Gold Max A insurance with Rider - that means you don't need to pay a single cent for single bed private hospital expenses.

The life time premium is about S$300K - in line with US cost.
So if you have factored that into your retirement, it will be worry free.

[richwang]

"Fidelity Investments, for example, estimates a 65-year-old couple retiring this year will need roughly $220,000 to cover medical expenses, not including long-term care insurance throughout retirement."

http://www.cnbc.com/id/101137178

[Shanhz]

chronic diseases which do not require hospi - these still will come out of pocket, altho' govt got give subsidy.

[richwang]

The current CPF limit of using S$800 - S$1,200 to buy medical insurance is based on life expectancy of 100 years.

[richwang]

Long-Term-Care Insurance benefits and Risks (in US)

http://online.wsj.com/news/articles/SB10001424127887323475304578501822156473886

[princess_morbucks]

Richwang, so you feel that AIA Gold Max A insurance with Rider is really worth it?
Was thinking of getting it too.
What about Max B with rider?
Got someone who was declined by the insurance company of Max A in the past although he was insured with their previous highest end insurance before AIA upgraded to the gold series.

[richwang]

I have no clue about the complicated hospital insurance stuff. The only thing I can do is to ensure I have put aside the fund to pay the premium.

[richwang]

Got someone who was declined by the insurance company of Max A in the past although he was insured with their previous highest end insurance before AIA upgraded to the gold series.

My friend who was rejected the upgrade has just received a letter from AIA to automatically upgraded him last week.
Hope your friend has also received his/her auto-upgrade.

[richwang]

Richwang, so you feel that AIA Gold Max A insurance with Rider is really worth it?
Was thinking of getting it too.
What about Max B with rider?


It seems like Max B is designed for restructured hospital private patient Class A while Max A is designed to match the cost of private hospital single bed.

http://www.moh.gov.sg/content/moh_web/home/costs_and_financing/schemes_subsidies/Medishield/Comparison_of_MediShield_and_Private_Integrated_Plans.html

[richwang]

Richwang, so you feel that AIA Gold Max A insurance with Rider is really worth it?

Pls note the life time Rider premium difference between Max A and Max B is only about S$10K.
The base cost difference is about another S$55K.
So if you have S$65K to spare, why not consider Max A to give you the option to stay in private hospital when there is a need.

[richwang]

Of course when you are at age 99, and don't want to pay S$8,273 for the premium of Max A, you can downgrade to pay S$5,863 for Max B.

[princess_morbucks]

Pls note the life time Rider premium difference between Max A and Max B is only about S$10K.
The base cost difference is about another S$55K.
So if you have S$65K to spare, why not consider Max A to give you the option to stay in private hospital when there is a need.

Thanks richwang, for your detailed analysis.
If the only difference bet Gold max A and B is govt and pte hospital , then I guess Max B will suffice as I have full confidence in the govt hospitals in SG.

[princess_morbucks]

Richwang, the rider has to paid in cash and not through medisave, right?

[richwang]

Riders are always in cash.
If you go for Max B, by age 61, you will start to use cash to pay the base insurance as well. CPF Limit is S$800 for age 65 and below, but the premium for Max B is S$1,119 for age 61-65.
By age 99, the CPF Limit is S$1,200, but the premium is S$5,863.

Anyway, the MediShield Life review will cover Integrated insurance review as well. Let's hope government will have guideline for insurance company to pay out 80% of premium collected - so the premium for very old people will actually drop.

[Shanhz]

Thanks richwang, for your detailed analysis.
If the only difference bet Gold max A and B is govt and pte hospital , then I guess Max B will suffice as I have full confidence in the govt hospitals in SG.

princess, personal experience. was not feeling well, SGH A&E gave me "special" Q for gastroenterologist. guess what? special Q waiting time 2 weeks. by then i would be dead already.

went to gleneagles, next day immediately scope. after that results out in 2 hours after scope. medicines and within 2 days problem solved.

thankfully i have full claim for private. my annual premium is $400+. the scope cost me $4k all in all including visits and med. you say worth it or not?