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My Insurance Review (2020)

A review on my personal insurance coverage.



In case you haven't heard about it, Critical Illness (CI) definition are changing in Singapore soon.


According to the Life Insurance Association Singapore (LIA), the main insurance association representing the local insurance scene, these new CI definitions are set to take effect on 26th August 2020 (in about 3 weeks time).

What this means is that from 26th August 2020 onwards, all insurers in Singapore would have to adopt the new Critical Illness (CI) Framework 2019 as set out by LIA Singapore, replacing the current CI framework adopted in 2014.


I won't be going into the details of the new CI framework and its implications, but if you are interested, Seedly has written a nice article for the ordinary individual to understand more about these changes and how you might be affected by the new CI definitions.


In general though, there will be stricter definitions for cancer, heart complications and stroke (the so-called "big 3 CIs"), along with more exclusions added to conditions like coma and benign brain tumour, to name a few.


What this mean is that it may become harder for policyholders to make claims against their policies, and in a few instances, policyholders will even need to spend more money to undergo diagnostic tests to further confirm the condition before they can make a CI claim.


Existing CI policies will not be impacted, as insurers are required to fulfil the terms in the contract for as long as the policy remains in effect. As such, for those who have yet to get any CI coverage, this will be the last chance to get any CI policies under the old definition adopted in 2014.


With this in mind, I guess this would be a good time to review my insurance coverage, in particular on my critical illness coverage. After all, it's been a while since I last reviewed them.


Before I begin, I would like to point out that I am neither an insurance professional nor have I been explicitly trained in insurance. I do not have any of the necessary certifications, have never sold insurance to anyone and have no intention to do so in the foreseeable future.


This post is also not sponsored by anyone, and is purely a humble review of my own personal insurance coverage. My only hope is that this post might be able to help others make better insurance choices, based on my personal reasoning and experiences.



My current insurance coverage


In their respective categories, I currently hold:

  1. Hospitalisation Insurance (AIA HealthShield Gold Max Plan B)

  2. Critical Illness Insurance (Aviva Mindef Group Living Care)

  3. Early Critical Illness Insurance (Aviva Mindef Group Living Care Plus)

  4. Death/TPD Insurance (Aviva Mindef Group Term Life & GE Dependents Protection Scheme)

  5. Personal Accident Insurance (Aviva Mindef Group Personal Accident & AIA Solitaire Personal Accident)


What's missing


The only insurance I am not covered for is Disability Income Insurance, but since I am not working and do not have an active income for now, I am not eligible for it. Nothing I can do about it now, but I would look into this when I start working in the future.


Breakdown of my current insurance coverage


1. Hospitalisation Insurance (AIA HealthShield Gold Max Plan B)

  • Total Coverage: Up to Public Hospital (Ward A and below)

  • Comments: Stayed in both Public Hospital and Private Hospital before, and the entire Public Hospital experience met my expectations.

  • Given this, I feel that that my current health insurance coverage of up to Ward A government restructured hospitals is adequate for me, with the yearly premium more affordable as well.

  • Verdict: No Change needed


2. Critical Illness Insurance (Aviva Mindef Group Living Care)

  • Total Coverage: $350,000 for 36 out of the 37 CIs defined by the LIA. The remaining CI, 'Angioplasty & Other Invasive Treatment For Coronary Artery', is capped at 10% of sum assured or $25,000, whichever is lower ($25,000 in my case).

  • Point to note: $350,000 is the maximum coverage possible for this policy.

  • Comments: At the time of writing, the CI coverage offered by the Aviva Mindef Group Living Care rider has already adopted the new 2019 definitions set out by LIA.

  • Unlike individual policies, this is a group policy, so Mindef 'owns' the insurance policy. In other words, I don't have control over any future changes that Mindef might adopt for this insurance policy, just like how in this case I don't have control over whether to accept the new 2019 definitions or not.

  • Nonetheless, I would still keep the Aviva Mindef Group Living Care, since it is very affordable (before the age 50) for the amount of coverage it provides, and is easily one of the cheapest policies out in the market.

  • However, as part of my plan to increase my CI coverage to $500,000, I guess this would be a good time to layer on another CI insurance, and to 'lock in' this additional coverage with the 2014 CI definitions.

  • Side Note: The high coverage I am striving for here is just me being kiasu; the recommended CI coverage by LIA is only 3.9x your annual income in case you are wondering.

  • Verdict: Get additional CI insurance


3. Early Critical Illness Insurance (Aviva Mindef Group Living Care Plus)

  • Total Coverage: $300,000 for 10 Early CIs.

  • Point to note: $300,000 is the maximum coverage possible for this policy.

  • Comments: Similar to the Aviva Mindef Group Living Care, the Aviva Mindef Group Living Care Plus is also very affordable (before age 50) for the amount of coverage it provides.

  • While it only covers 10 Early CIs, the 10 Early CIs covered are from the "big three CIs" (i.e. cancer, heart complications and stroke), as well as kidney removal and small intestine or corneal transplant.