Hospital and surgical
This type of policy reimburses expenses for inpatient and some outpatient medical treatments.
Buy a plan that reflects your health-care expectations, such as the type of ward you would prefer should you be hospitalised. Choose a guaranteed-renewable plan that provides lifetime cover. An 'as-charged' plan, which does away with benefit limits, is desirable as it minimises out-of-pocket expenses.
Critical illness
It pays a lump sum when you are diagnosed with one of 30 designated critical illnesses.
Payouts made under this type of policy serve to replace your income when you are unable to work because you are critically ill. As a guide, one may insure an amount of about two to five years of income or at least $100,000.
Disability income
This type of policy pays a monthly sum when you are unable to work due to a disability.
As a guide, the payout should be enough to cover all non-discretionary monthly expenses and all monthly contributions towards achieving your financial goals. This is generally 50 per cent to 75 per cent of one's regular monthly income.
Long-term care
This type of policy pays a monthly sum when you suffer from a severe disability.
To estimate the cost of caregiving needed, consider the following: If caregiving is provided by a family member, about $400 a month is required just for medicine alone; If a foreign maid is needed, about $1,000 a month is needed to pay for medicine, and the maid's salary and levy;
Caregiving at a basic nursing home (eight-bed ward or more) may cost up to about $1,300 a month. Those demanding higher standards of caregiving should get a higher level of cover.
Hospital income
It pays a fixed sum based on the number of days of hospitalisation.
Previously, such plans served to supplement the protection of a hospital and surgical plan. However, with improvements to Shield plans, this cover is no longer essential. Source: Providend
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