should u think life is the pits? (2)

one of my clients told me he was saddened to come to know he's no longer covered under his integrated shield plan?

how so?

because he has hust received an official letter from the insurer stating:

As we have not receive the outstanding premium to date, we regret to inform you that the integrated shield cover for the above policy number has been terminated with effect from 01 Dec 2010.

If the insured is also covered under the integrated plan and terminating without switching to another insurer or change of plan, you should note the following from the Central Provident Fund (CPF) Board.

The insured will continue to be insured under the MediShield scheme with the CPF Board, as long as he is eligible for the scheme. The MediShield cover will be renewed automatically each year after the premium is deducted from the MediSave Account.


my comments:

all along, for more than 10 years, his son has been footing his dad's premiums from both his medisave account and topping up the difference in premium by paying cash*.


*Medisave can also be used to pay for premiums of these private Medisave-approved Integrated Shield plans, subject to a withdrawal limit of $800 per policy, per year. For policyholders aged 81 and above, the withdrawal limit is $1,150 per policy, per year.

i guess the premiums are now very much higher than more than 10 years ago because his old man is already in his early 80s and will need a higher commitment from the son to pay premiums.

if i look up what is payable for his plan based on his age (early 80s), it is now >$2,000 per annum just for the integrated shield plan alone without the rider. and to cought out more than $1,000 in cash is probably something which the son considers as too much of a commitment.

on this, i have often been told by my clientele when doing retirement planning that their plan A is to rely on their children to take care of them when they reached their retirement age.

well, sadly, this is a classic illustration of a plan A going horribly unexpected or not going the way the plan is supposed to be going.

my point here is, if he has planned for his retirement, than obviously he has a concrete foundation to fall back on.

that's why i'm always ruffled when the person in front of me says he will rely on his child/ren in his golden years.