From ST, Singapore
Aviva's unique offers include payouts for those who recover slightly from disabilities, and for kids whose parent is disabled
By Salma Khalik
People 40 years and older have a wide range of schemes to choose from to protect themselves financially against severe disability, with the final insurer, Aviva, releasing its schemes yesterday.
Among its new offerings are monthly payouts for people with severe disabilities who are recovering and money for children under 21 when a parent is disabled.
Between them, the three insurers - Great Eastern (GE), NTUC Income and Aviva - offer combinations of longer coverage and higher payouts, up to a maximum of $3,500 a month for life.
ElderShield, the national severe disability insurance scheme, was revamped recently so that people who join from this month will get a payout of $400 a month for six years should they qualify - up from $300 a month for five years for people who joined earlier.
Once on the basic scheme, they can opt to buy one or more supplementary schemes from any insurer.
Premiums for the supplementary scheme can be paid with Medisave money - the portion in Central Provident Fund savings reserved for health care - up to a cap of $600 a year.
Health Minister Khaw Boon Wan was pleased at the buffet offered, but cautioned people to study the various schemes carefully before picking one that 'provides best value for money and within their affordability level'.
He told The Straits Times yesterday: 'The supplements cover a good range of payouts and should meet the diverse needs of most Singaporeans who want and can afford higher payouts than what the basic ElderShield provides.'
All three insurers have retained the basic criterion for payouts - when a person is unable to do three of the following without help: bathing, eating, going to the toilet, walking, dressing or getting out of bed or a chair.
Newcomer Aviva has tried to be creative with some unique offers.
These include giving a 50 per cent payout if the person recovers slightly, but still is unable to do two of the six activities of daily living. The basic scheme stops payment when this happens.
It also provides a $200 a month additional payment for three years if the policyholder has children younger than 21 years of age.
Policyholders also enjoy discounts at public hospitals in the National Healthcare Group for services such as health screening and podiatric treatment.
The last is especially useful to diabetics, who need such treatment at least once a year.
Like its rival NTUC Income, Aviva also offers lifetime payouts. Alternatively, policyholders can opt for a 12-year payout period.
The amount of coverage ranges from $600 a month to $3,500 a month, including the basic ElderShield payout.
It also gives the option of paying premiums till the age of 65, or for as long as one lives, at lower rates. Whichever is chosen, coverage is for life.
Its marketing head, Mr Paul Hughes, expects most people to choose a monthly payout of $800 to $1,000. He said premiums for such schemes for people up to 55 years old should be completely payable by Medisave. In fact, for most people, the premium can be paid for simply with interest earned on the Medisave accounts.
Like GE, it offers a lump sum payout of three months at the start of the claim, and a death benefit should the person die during the claim period.
Member of Parliament Lam Pin Min said the range of schemes is 'a good start', but he thinks the premiums could be lower and hopes that excess income would be returned.
He advised people to choose carefully: 'They should be realistic yet practical in their choice so that they do not over-insure themselves unnecessarily.'
But Madam Halimah Yacob, head of the Government Parliamentary Committee for Health, wanted the insurers to go further, for example, by providing payouts for people who need help but fail to qualify under the current scheme.
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