Insurance for seniors
New policies targeting older Singaporeans are hitting the market, but how much value do they add to your coverage?
With one in five Singaporeans to be aged 65 and over come 2030, a new group of financial products designed to meet the needs of senior citizens has emerged in the insurance market in Singapore.
With one in five Singaporeans to be aged 65 and over come 2030, a new group of financial products designed to meet the needs of senior citizens has emerged in the insurance market in Singapore.
Earlier this year, NTUC Income launched SilverCare, a personal accident plan aimed at seniors that provides benefits for caregiver training, home care, and home modification, apart from payouts of up to S$50,000 for permanent disability due to accidents, and coverage of hospitalisation expenses.
Meanwhile, AIA Singapore offers Prime Assured, a personal accident plan for seniors that reimburses medical expenses and provides a daily accident hospital income benefit. The extras: Coverage for mobility aids if recommended by a physician and also an Alzheimer's or Parkinson's disease benefit of a lump sum payout of up to S$3,000.
These policies are meant to address the specialised needs of seniors and protection over profits are emphasised, said both companies.
AIA, which found in a survey last year that only one in 10 Singaporeans are adequately insured, said it is "committed to ... continuing to ensure our protection products are competitive and adequately addressing customers' protection needs".
Ms Annie Chua, Senior Manager at NTUC Income, Personal Lines, said: "(SilverCare) is priced at marginal cost to make it affordable to those who need it most."
How do they add value?
When considering silver plans, it is worth noting that critical illnesses defined by the Life Insurance Association which affect the elderly - such as Alzheimer's, severe dementia, Parkinson's, paralysis or loss of limbs - are already covered in a critical illness plan, said Ms Peggy Chan, financial advisor representative from Elpis Financial.
Other financial advisers TODAY spoke to felt such plans are unnecessary as many of those who meet the minimum age requirement would probably already have some form of insurance coverage like ElderShield.
But the new silver plans can play a "complementary role", said NTUC Income's Ms Chua. "ElderShield … provides basic financial assistance to those who need long-term care, while SilverCare provides a lump sum payout to help pay the expenses of caring for a severely disabled person. With the cost of healthcare and daily living rising, NTUC Income's SilverCare will complement ElderShield," she said.
Meanwhile, AIA Singapore offers Prime Assured, a personal accident plan for seniors that reimburses medical expenses and provides a daily accident hospital income benefit. The extras: Coverage for mobility aids if recommended by a physician and also an Alzheimer's or Parkinson's disease benefit of a lump sum payout of up to S$3,000.
These policies are meant to address the specialised needs of seniors and protection over profits are emphasised, said both companies.
AIA, which found in a survey last year that only one in 10 Singaporeans are adequately insured, said it is "committed to ... continuing to ensure our protection products are competitive and adequately addressing customers' protection needs".
Ms Annie Chua, Senior Manager at NTUC Income, Personal Lines, said: "(SilverCare) is priced at marginal cost to make it affordable to those who need it most."
How do they add value?
When considering silver plans, it is worth noting that critical illnesses defined by the Life Insurance Association which affect the elderly - such as Alzheimer's, severe dementia, Parkinson's, paralysis or loss of limbs - are already covered in a critical illness plan, said Ms Peggy Chan, financial advisor representative from Elpis Financial.
Other financial advisers TODAY spoke to felt such plans are unnecessary as many of those who meet the minimum age requirement would probably already have some form of insurance coverage like ElderShield.
But the new silver plans can play a "complementary role", said NTUC Income's Ms Chua. "ElderShield … provides basic financial assistance to those who need long-term care, while SilverCare provides a lump sum payout to help pay the expenses of caring for a severely disabled person. With the cost of healthcare and daily living rising, NTUC Income's SilverCare will complement ElderShield," she said.
AIA added that the lump sum benefit from its Prime Assured plan can also help to tide over immediate financial difficulties.
Mr Anthony Tse, Associate Director from IPP Financial Advisers, concurred that these policies can be useful as people tend to be more accident prone as they age, but consumers must pay close attention to the terms and conditions.
"For example, AIA Prime Assured stated that renewal up to age 85 is 'subject to approval'. Also, benefit will reduce by 50 per cent after age 80," he cautioned.
Getting protected
Good insurance coverage for the silver years should not only include personal accident plans but also hospitalisation plans, critical illness plans or retirement endowment plans, which should be purchased when one is younger and healthier, said Mr Tse.
If budget is limited, priority should be given to hospitalisation insurance and life insurance that covers critical illnesses.
Ms Chan suggested that beyond what was offered in existing plans in the market, "more can be done to alleviate the cost of psychiatric treatment".
One should also enhance the ElderShield policy with supplements currently offered by NTUC Income, Great Eastern and Aviva.
"Basic ElderShield may not offer very significant monthly disability benefit, but that along with the ElderShield Supplement and other health plans will be proven useful in time of need," he said.
Buying a policy: What to look out for
Renewal conditions: The terms and conditions of the policy may change at the next and future renewals
Insurer's 'injury' definitions.
Waiting periods: Some policies require six to 12 months of continuous disability from the date of accident to validate a claim
Premium payment term: Avoid paying premiums beyond your expected retirement age
The insurer's track record in delivering consistent bonuses. An experienced independent adviser should be able to present a long-term return comparison across different insurers.
by Ashley Chia
Source
Mr Anthony Tse, Associate Director from IPP Financial Advisers, concurred that these policies can be useful as people tend to be more accident prone as they age, but consumers must pay close attention to the terms and conditions.
"For example, AIA Prime Assured stated that renewal up to age 85 is 'subject to approval'. Also, benefit will reduce by 50 per cent after age 80," he cautioned.
Getting protected
Good insurance coverage for the silver years should not only include personal accident plans but also hospitalisation plans, critical illness plans or retirement endowment plans, which should be purchased when one is younger and healthier, said Mr Tse.
If budget is limited, priority should be given to hospitalisation insurance and life insurance that covers critical illnesses.
Ms Chan suggested that beyond what was offered in existing plans in the market, "more can be done to alleviate the cost of psychiatric treatment".
One should also enhance the ElderShield policy with supplements currently offered by NTUC Income, Great Eastern and Aviva.
"Basic ElderShield may not offer very significant monthly disability benefit, but that along with the ElderShield Supplement and other health plans will be proven useful in time of need," he said.
Buying a policy: What to look out for
Renewal conditions: The terms and conditions of the policy may change at the next and future renewals
Insurer's 'injury' definitions.
Waiting periods: Some policies require six to 12 months of continuous disability from the date of accident to validate a claim
Premium payment term: Avoid paying premiums beyond your expected retirement age
The insurer's track record in delivering consistent bonuses. An experienced independent adviser should be able to present a long-term return comparison across different insurers.
by Ashley Chia
Source
Thanks
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