Questons on Life and medical insurance

Q: My medical bill is covered by the Government. I am on the pension scheme. Should I be covered for Medishield under CPF?

If you are covered for medical benefits by the Government for a lifetime, there is no need for you to buy Medishield or any of the private Shield plan. You can save on the premium.

I understand that the Government scheme may require you to make a small co-payment for some of the charges. This co-payment is small and can be paid out of your savings. There is no point in buy a Shield plan to cover the small co-payment, as the premium charged is out of proportion to the coverage that is provided.

Q: I have a whole life policy. I am 35 years old. Should I liquidate and convert to a term assurance?

It is better for you to keep the whole life policy, as you have already incurred the upfront expenses that is deducted to pay the commission to the agent.

In the future, you may have to increase your life insurance protection. At that time, it is better to buy a term insurance or a decreasing term insurance for the additional cover.

Q: I bought a Living and a Career policy from NTUC Income What is the best time to redeem these policies?

I suggest that you continue this policy until your retirement date. At that time, you can decide on how best to deal with these policies. You can read the tips contained in paragraph 10 in this FAQ.