Shield Plan is Important & the wise will take Annuity

2 issues that I would like to share with you which the ministers said are important.

Incomeshield
Health minister will make it compulsory for child borned to have medishield plan unless opt out, and to encourage one to upgrade to PMI, private medical insurance which are the Shield Plans if one desires better care than B2 ward restructured hospital care.

I have always champion for this, that any shield plan one favours, please do it. I have written this in my blog. And do it for all family members.

Last Sunday, Sunday Times compared all the Shield Plans, insurers are basically trying to capture market shares as the insurers compete against each other. My advice is Incomeshield, having the largest base will be more stable. But again, go along with the insurer you are comfortable with and do not wait for things to happen.

I have always been emphasizing that Shield Plan is the primary necessity of all in life.

Annuity
Annuity is one plan, like a pension, you transfer the CPF retirement Minimum sum to insurer and at age 62 you are paid about $600 and it will increase with bonus as it goes, so in the long run, it can pay more than $700 a month and even higher. You can also do this with lump sum cash, other than CPF fund.

Ntuc Income's Classic Annuity is participating, and bonus will be paid and annuity payment will increase.

If you go to an independent website call Dr Money at http://www.askdrmoney.com/Ins_Annuities.htm he compares all the Annuity Plans against CPF draw down. Click on his website for other interesting comparisons as well at http://www.askdrmoney.com/

CPF draw down is likely to exhaust in 20 years, but Annuity pays so long as you live, lifetime income. Some of your senior relatives who have such annuities are drawing the annuity payment now, especially those with Ntuc Income annuity plans, you may want to check with them. Earlier batch had quite good bonus by now and good annuity payments.

Income's Annuity Plan (click on this link for more info to Income website ) in event of pre-matured death, balance with bonus declared, minus draw down will be paid to beneficiary. This is a win win kind of plan in event of pre-mature death before principle is exhausted.

Annuity plan is available by cash or with CPF Fund.