Getting to know your company's health benefits.

On 26th December, after a month stay, my client who is an acute leukaemia patient was discharged from the hospital. The medical bill was substantial and he checked with his company's medical benefit seeking reimbursment. Only then he was told that the company's medical benefit is only on "accident during work". His disappointment is beyond words.

On 24th December(Sunday times), I read an article titled: "What you didn't know about your company's health coverage." I have observed that many people do not know what their company health benefits are, and when things happen, it is too late to find out the details.

Another observation is that the HR departments of companies usually do not fully understand the benefits themselves. This lack of understanding can lead to disappointment, and in some cases legal actions. Both the companies and the employees incurred financial costs which can be avoided.

My professional suggestion is that one can seek his/her financial planner's help in examining the company health benefits for him/her. Most insurance-based planners or FA reps are equiped with certificate in Health Insurance by the Singapore College of Insurance, which make them a better person to analyse your company benefit than layman.

I can assure you that such initiative is worth the effort. Below are the steps:

Step 1: Seek your financial planner's agreement in analysing your company's benefit.

Analysing the company benefits takes time. Some planners might charge a fee, but most will be pleased to do it in exchange for a goodwill.

Step 2: Approach your HR Department

Approach your HR department to ask for a copy of the health benefit schedule based on your entitlement. Such schedule can be found in the group insurance policy document. If the HR department does not keep a copy, you may seek it from the insurance company directly.

(If your HR department says this is a state secret, then it would be prudent to work for another company!)

Step 3: During the meeting with your financial planner

During this meeting, besides the company benefit schedule, it would be good to provide your personal health insurance, disability income plan, critical illness plan and medishield policy details to the planner. This will enable him/her to analyse your medical cover comprehensively.

Step 4: Some critical questions you should ask

a. What are the policy exclusions?

b. What is the waiting period?

c. Benefits entitlement and their sub limits?

d. Any deductible or co-insurance elements within the plan?

e. Treatment of pre-existing medical condition(s)?

f. Treatment of expenses incurred overseas and locally?

g. Claim procedures.

This exercise will be of enormous value to you.

HIV and its implication on insurance

HIV in Singapore has become a health and social issue that a government committee has been formed to look into this problem. The impact on a person with HIV from the insurance perspective is terrible.

1. Medical Expense Insurance (e.g. Medishield or private shield plans)

HIV is excluded in this form of insurance. Therefore, a HIV patient has to pay the hospitalisation bills by his/her savings.

2. Disability Income Insurance

AIDS is excluded in this form of insurance. Therefore, a HIV patient cannot claim the loss of income as a result of AIDS.

3. Critical Illness Insurance

HIV is claimable provided:

a. the infection was through a blood transfusion;

b. the blood transfusion was medically necessary or given as part of a medical treatment;

c. the blood transfusion was received in Singapore.

Or the person got infected during his/her professional duties. Only people in the medical profession (i.e. doctor, nurse, medical lab techinican, paramedical worker etc) qualify for this claim.

4. Life Insurance

If the policy was inforced BEFORE the person got HIV, life insurance proceed(death benefit) is claimable.

If the person already got HIV, no life insurance company would approve new life policy on him/her.

Therefore, beside the health and social issues, a HIV patient will be hit hard financially as well.

Start your retirement saving today!

I review no less than 50 personal financial plans a year in my work. I notice that many people do not set aside sufficient savings for their retirement. Most of them cite convincing arguments why they can't save. But I can sense this group of people are living in a self-denial state. Let me show you the hard facts about retirement planning.

1. Retirement planning is not about receiving a gold medal from your employer, getting a fat pension, and start travelling round the world with your spouse(or partner).

1.1. Retirement planning is when you transit into certain inevitable age band where your bodily functions begin to slow down, and you have sufficient financial resources to generate income to live.

1.2. Retirement planning is about having bulk of your income coming from passive instead of active income. Passive income source can come from annuity, dividends, rental from property, planned draw down from life insurance cash values or investment etc. Active income comes only you are able to work.

1.3. When you are old, you need income:

a. to eat and clothe yourself;

b. to maintain the place you stay;

c. to keep up inflation of cost of living;

d. to provide for medical treatment (or medical insurance premium);

e. to discharge your responsibility to your parents(who would be much older than you);

f. to attend red or white events from friends or family members;

g. to please(or pacify) your spouse.

Retirement planning is a personal responsibility. If you can't save now, what make you so sure you can save in the future.

A quote from a wise man: "The difference between an elderly gentleman(or lady) and an old man(or woman) is INCOME."

Start(and continue) your retirement saving today!