If you are covered for medical insurance, and you need to go for medical treatment, what should you do first?
Call the insurance company.
Give your particulars. Ask them to explain what is covered under the medical insurance. Ask about the limits for each category of coverage and the exclusions.
Tell the insurer about the estimate cost of treatment given by your doctor. They may be able to advice if the estimate is reasonable, and if there are better, more cost effective alternatives.
Be better informed. Do not be shy to ask.
Thursday, April 19, 2007
Claim on several accident policies
Dear Mr Tan
If I have several personal accident policy, and something happens to me, can my family make a claim on all the policies?
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My reply:
If you are insured under several personal accident or life insurance policies, you can make a claim on all of them. There is no limit to the total amount that can be claimed under these policies that cover a human life.
The situation is different for insurance policies that are intended to reimburse you for the actual loss, such as a fire insurance policy or a medical expense policy. Under these policies, you will only be paid for the amount that you have incurred.
For example, if your house is burned down by a fire, and the cost of rebuilding the house is $500,000, you can claim up to this amount only, even though you may have insured for a much larger sum.
Similarly, if you have several medical expense policy, you can only claim for the amount of your medical bills, even though the insured sum under all the policies may be higher.
The principle is: you cannot make any gain under a "reimbursement" policy.
If I have several personal accident policy, and something happens to me, can my family make a claim on all the policies?
-----------------------------------------
My reply:
If you are insured under several personal accident or life insurance policies, you can make a claim on all of them. There is no limit to the total amount that can be claimed under these policies that cover a human life.
The situation is different for insurance policies that are intended to reimburse you for the actual loss, such as a fire insurance policy or a medical expense policy. Under these policies, you will only be paid for the amount that you have incurred.
For example, if your house is burned down by a fire, and the cost of rebuilding the house is $500,000, you can claim up to this amount only, even though you may have insured for a much larger sum.
Similarly, if you have several medical expense policy, you can only claim for the amount of your medical bills, even though the insured sum under all the policies may be higher.
The principle is: you cannot make any gain under a "reimbursement" policy.
Write a Will
Hi Mr Tan,
Do you advice people to write a will? What happens if there is no will? Will the assets be distributed unfairly?
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My reply:
Here is my view as a non-lawyer.
You should write a will if you have fairly large estate, say more than $1 million, and you have specific ideas about how the assets are to be distributed on your death.
If there is no will, the legal position is that the estate will be distributed according to the intestate law. In most cases, the surviving spouse will get 50 percent and the remainder will be distributed equally among the children.
In practice, the family members will decide how best to distribute the assets among themselves. They may wish to give a larger share to a poorer member of the family. This can be decided by agreement among the members.
If there is a dispute, and the matter is brought to court, the distribution will be made according to the intestate law.
It is usually better to have a will. If you change your mind later, you can write a new will. The cost of a standard will is quite modest.
Do you advice people to write a will? What happens if there is no will? Will the assets be distributed unfairly?
--------------------------
My reply:
Here is my view as a non-lawyer.
You should write a will if you have fairly large estate, say more than $1 million, and you have specific ideas about how the assets are to be distributed on your death.
If there is no will, the legal position is that the estate will be distributed according to the intestate law. In most cases, the surviving spouse will get 50 percent and the remainder will be distributed equally among the children.
In practice, the family members will decide how best to distribute the assets among themselves. They may wish to give a larger share to a poorer member of the family. This can be decided by agreement among the members.
If there is a dispute, and the matter is brought to court, the distribution will be made according to the intestate law.
It is usually better to have a will. If you change your mind later, you can write a new will. The cost of a standard will is quite modest.
Wednesday, April 18, 2007
Insurance payout are tax-free
Hello Mr Tan
I had brought the NTUC Income FlexiCash policy last year. Is the payout subject to tax? In general, will payout of life insurance be subjected to tax?
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My reply:
All payout from life insurance policies, including flexi-cash, are NOT subject to tax.
I had brought the NTUC Income FlexiCash policy last year. Is the payout subject to tax? In general, will payout of life insurance be subjected to tax?
---------------------
My reply:
All payout from life insurance policies, including flexi-cash, are NOT subject to tax.
Advantages of taking a bus
I am now a regular commuter of the public bus.
Here are the advantages of taking a bus to your destination:
* I relax and let someone do the driving
* I am usually able to get a seat, eg during offpeak period
* It is economical, ie one fifth of the taxi fare
* I have the chance to exercise, i.e walk to the bus stop and to the destination
* I can think while waiting for the bus or on the journey
The only disadvantage is that it take more time. But, it is all right if I leave early and allow more time for the journey.
Here are the advantages of taking a bus to your destination:
* I relax and let someone do the driving
* I am usually able to get a seat, eg during offpeak period
* It is economical, ie one fifth of the taxi fare
* I have the chance to exercise, i.e walk to the bus stop and to the destination
* I can think while waiting for the bus or on the journey
The only disadvantage is that it take more time. But, it is all right if I leave early and allow more time for the journey.
More insurers offer term insurance policies
NTUC Income offered attractive term insurance rates under its i-Term policy.
Recently, I read that Prudential has also advertised its term insurance rates. I do not know if their rates are as attractive as NTUC Income.
I am glad that more life insurers are promoting term insurance. It will allow more people to have adequate life insurance coverage at a low cost.
They can invest their savings in an investment fund to get a better return. Read more in this FAQ
Recently, I read that Prudential has also advertised its term insurance rates. I do not know if their rates are as attractive as NTUC Income.
I am glad that more life insurers are promoting term insurance. It will allow more people to have adequate life insurance coverage at a low cost.
They can invest their savings in an investment fund to get a better return. Read more in this FAQ
Where to find part time work?
Dear Mr Tan
I like your suggestion for seniors to find part time work near the home. But where can we find the work? Please advice.
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My reply:
The Center for Seniors will launch its call center soon. You can call the hotline and give the following information:
* your name
* your postal district
* types of work that you are interested in
* your expected pay per hour of work
I have approached three several large organisations. They are willing to support this initiative and provide part time work for seniors. The initial number is about 300 part time jobs, but this can increase, if the pilot exercise is successful. The rate of pay is between $6 to $8 per hour.
More details will be announced within the next few weeks.
I like your suggestion for seniors to find part time work near the home. But where can we find the work? Please advice.
-----------------------------
My reply:
The Center for Seniors will launch its call center soon. You can call the hotline and give the following information:
* your name
* your postal district
* types of work that you are interested in
* your expected pay per hour of work
I have approached three several large organisations. They are willing to support this initiative and provide part time work for seniors. The initial number is about 300 part time jobs, but this can increase, if the pilot exercise is successful. The rate of pay is between $6 to $8 per hour.
More details will be announced within the next few weeks.
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