Dear Mr. Tan,
Someone told me that you recommend paying premium for Shield out of pocket, instead of Medisave. You also said to pay the co-payment using cash, instead of claiming against Medisave. Why?
REPLY
If you have the cash, it sits in the bank earning less than 1% per annum. You can use it to pay the Shield premium and the co-payment (for hospitalisation).
If you do not touch your Medisave savings, it will earn interest at 4% plus 1% bonus, making a total of 5%. This is a good yield.
You will need your Medisave savings to pay for the insurance premium and hospital co-payments when you grow old. If you do not use it, the excess, above the cap, can be transferred into your retirement account to be paid out monthly.
The Medisave account is a good form of investment earning 5% without any risk.
Read this FAQ for more explanation:
http://www.tankinlian.com/faq/shield.html
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