Thursday, May 14, 2009

Eldershield Supplements

I had wrote about Eldershield several times in my blog but nothing mentioned about the supplements. A lot of people are already confused with Eldershield, not to say about the supplement. Even many advisers are confused about these plans.

Today, I like to share a bit about it and the difference between 3 insurers providing this insurance.

In my comparison, I'd used a few assumptions:
a) Disability Period = 10 and 15 years (Amount paid out)
b) Presuming disabled at an age of 72
c) The insured is 50 years old today when he/she take up this plan
d) Total Premium paid will be from age 50 to 72

The Yellow Portion is the part payable via Basic Eldershield.
The Green Portion is the part payable via Eldershield Supplement
The Blue Portion is the extra/bonus payout from the Supplement plan

NTUC Income - Eldershield Lifetime Care Series

Strength and Weaknesses of the NTUC Income Plan
* The Eldershield Care plan gives additional cover for short period. Value for money only if disabled for short period
* The Eldershield Lifetime plan gives additional cover beyond the basic Eldershield for life
* Eldershield Care and Lifetime Plan combined make the cover very comprehensive
* Premium payable till age 65 and hence higher premium. The high premium paid in initial years hinders growth of Medisave fund.
* Value for money if disabled at a very late age, say 82 yrs old.

Great Eastern - Value Plus and Eldershield Comprehensive Series

Strength and Weaknesses of the GE Plan
* No Lifetime cover and limited benefits
* Yearly Renewable premium and hence need to pay little in the beginning
* Very basic and for budget constraint policyholders
* Value for money if disabled at a very young age and for 9-10 yrs.

Aviva - MyCare Series

Strength and Weaknesses of Plan
* Very comprehensive and include Rehabilitation and Dependent Care Benefits
* Flexibility of limited premium term of up to 20 years and Benefit payout term of 12 years
* Value for money if disabled early and for a long period
Hope above info are useful for you.

No comments: