Protect What’s Important to You
It doesn’t matter if you are aged 30 or a senior. Let’s not be tricked by our own brains thinking retirement is so far away. What matters most is we are proactive and TAKE ACTIONS to plan ahead for ourselves and our loved ones.
If you are married with young children and support your parents, have you wondered if you can manage financially if any of your parents had fallen sick?
- Do they have a hospital & surgical insurance plan (private integrated shield plan) or a critical illness insurance cover to help them pay for potential hospital bills and medical bills during retirement?
- Will you and your siblings help to take care of your parents both financially and their medical and personal care?
Other than having enough funds for retirement, we can help our parents retire by planning for their health. To help our parents maintain their health, we can encourage them to have a good nutritional diet and leading an active lifestyle and stay socially connected to others through part-time work or joining community clubs or doing volunteer work.
Most importantly, help yourself and your parents to plan financially for health contingency that might arise later so that their retirement funds will not be wiped out.
According to data from an insurance firm in USA, a couple will need USD$225,000 at age 65 to offset future medical expenses, not including long-term care.
i.e.. S$500,000 can be spent in a short amount of time in the event of a need to stay at nursing home due to a bad fall or stroke.
We cannot plan for retirement without considering the potential pot-of-pocket costs of outpatient bills, inpatient medical bills and even personal care in the event that we are chronically ill or disabled or at home or a in a nursing home.
Who is going to care for the parent? From your parents’ own insurance plans? From their retirement funds? From your own pockets? Are you going to quit your job if you are the only child or work part-time instead? Where will this money come from?
This is why our government had implemented the basic Eldershield plan ten years ago to address the long-term care which is for medical and personal care for the chronically ill or disabled and can be provided at home or in a nursing home. In the event of an accident or sickness and if the doctor certifies that we cannot perform any 3 out of the 6 Activities of Daily Living (ADL) such as toileting, showering and feeding, then we can claim a cash benefit of either $300/mth or $400/mth for 72 months only.
Question: is $400/mth enough for a nursing home or hire a maid to take care of ourselves or our loved ones?
Today, a bed at a local government operated nursing home costs $900/mth after government subsidies. Over ten years, the total cost will be S$108,000. Imagine the potential physical, financial and emotional stress of such an event. I know because my own grandfather died of stroke and my father cared for him till he passed on.
So do not leave it to chance. Please help your parents check if they have the basic Eldershield plan. Log into the CPF website with your SingPass to check.
You can get an eldershield supplement plan and use up to $600/yr from your Medisave funds to top up the coverage for yourself if you are aged 40 or for your parents.
- The earlier you or your parents buy this enhanced coverage, the less expensive the plan will be.
- Remember we buy insurance with our health. Good health means it will be easier for us and our parents to qualify for insurance coverage.
- Postponing this idea only put your own insurability or your parents’ insurability at risk. It’s not worth the gamble to possibly lose the insurance option if they are not healthy to buy the long-term care insurance in future.
Don’t worry about servicing this plan as we can use our Medisave funds to service this Eldershield plan for our parents and top up the coverage by getting a supplement plan for them as the 4% interest on your Medisave funds can help you pay for these plans.
I would be more than happy to meet up with you to share with you more information on the ElderShield supplement and how these plans can help you feel secure and confident during your retirement for your parents and yourself.
Feel free to call me at 8168 7459 for an obligation free discussion. Let me help you weed out the information out there so that you make an informed decision for yourself.
Senior Financial Consultant
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