While the US administration is still deliberating on the insurance approach needed--health insurance cooperatives vs. government-run plan--with President Barack Obama doing what it takes to appease multiple stakeholders of one of the world's most abused healthcare system... thankfully, Singapore has in place a health insurance system that is more sound and stable and less subject to the vagaries of politics.
In the US, healthcare reform is politically driven by the different aims between the Democratic and Republicans. Whereas in Singapore, the situation is more controlled with the insurance department of the MAS already taking steps to clamp down on incorrect and unethical sales advisory conducted by insurance agents.
In an Aug 21 article in the Straits Times, it is reported that the average Singaporean "needs life insurance protection of $494,851. However, his existing life cover is only $165,628 on average, even after including mortgage insurance and CPF savings", which translates to an alarming shortfall to the tune of over $300,000.
The article lists the following as what the sum insured of the insurance policies should cover, in the event of death of policyholder:
- Outstanding debts and funeral expenses
- Housing costs
- Allowance to parents
- Children's expenses, including education
Not forgetting that the nature of life insurance is to provide long-term protection to policyholders. Life insurance, contrary to unit trusts, investment-linked plans or penny stocks, is not an investment, but a form of protection of a person and his family against future, unknown risks.
Unfortunately--I personally feel it is lamentable that--we have left the decisions of insuring our loved ones against fortuitous risks to supposed [untrained] insurance advisers that belong to a system that continues to be unregulated and is made up of agents who do not know what to do when a claim arises or who disappears altogether after a few years since policy inception.
Agreed? Do you have similar experience with agents who do not conduct themselves in meeting your insurance needs in healthcare?
Reference articles: "State-run insurance plan may be ditched", ST, 18 Aug 09 and "S'poreans grossly under-insured: Study", ST, 21 Aug 09
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9 comments:
And YES! I totally agree with the part that talks about untrained insurance agents and that some disappeared after a few years of policy inception. I can totally imagine your thoughts when you penned those words down.
I personally feel that the authorities should look into this area of mis-management by profit-seeking individuals and organizations, especially when insurance policies typically follows a person through his or her lifetime(at least in the case of Whole Life Policies).
Regulation can come in many forms and exercising responsibility in discharging advice is another area, though hard to qualify and quantify, which the authorities might want to look into.
-- Rapheal
I agree to what Rapheal said to some extend. I think perhaps schools should introduce basic financial management and hence insurance knowledge at a deemed appropriate level and by doing so, create level playing field in terms of head knowledge of insurance. -- Jessica
Thanks for your input, Raphael. I brought up in a comment on the discussion board that health insurance is an area that is abused in S'pore, [not only because of the way insurance agents conduct their businesses but also] because patients can malinger to inflate their claims and receive compensation for items such as 'pain and suffering' which can be hard to quantify. In your 'case', it's the issue of insurance advisers' failure to conduct their businesses in ways that truly meet a customer's health insurance needs, which is a huge reason why S'poreans are under-insured and worse, some are not insured at all. This directly results in a situation in which a patient will find himself having exhausted all avenues of medical bills 'offloading' -- his own insurance policies, MediShield, Medisave... can be all exhausted. Hefty medical bills accumulate and he is unable to receive the ideal medical treatment simply because he doesn't have the money to pay.
Jessica, that sounds like a feasible idea -- creating in young people a much needed awareness in working towards creating their own safety net. Off the head, I can see where this applies esp. when H1N1 deaths include mostly those young adults, as well as trends of motor accidents which have seen a spike in deaths and casualties of young drivers.
my sentiments exactly, jessica. life insurance concepts and values ought to be taught from young; for one, the basics of critical illnesses, death benefit, disability need to conveyd to adolescents for 'em to understd wat it means to buy insurance and how life insurance is a lifetime investment, a safety net against fortuitous events... that's my take. adios.
Hi poon... don't mean to demean but merely to add tt proper insurance education is often thwarted by unscrupulous agents or wat they elegantly term these days as 'financial planners slash advisers'. Agents oversell and unnecessarily stretch the benefits of life insurance products. anything can happen under the sun but tt doesn't mean, realistically, one needs to buy all sortsa insurance, rite?
tx for ur comment, Sue. not all agents are unscrupulous and all life agents have to go thru' training as stipulated by LIA (life ins. associatn), so agents are trained, if that's any measure to you.
what i'm saying is insurance education should be taught to young adults. risks and risk transfer and prevention are part and parcel of life. BENEFIICAL to learn earlier than much later. Plan for YOUR future.
dont knoe how many of u refer to older posts but hey, jus wanna say also that it's a good move on part of SG govt that MediShield is applicable to more Singaporeans. khaw boon wan is right tt S'poreans should get insured fr a young age, preferably soon after birth, b4 any health condition develops. MediShield doesnt close the gap for uninusured adults completely but at least its something la
thanks all for your feedback.
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