April 12, 2007

By Yap Su-Yin

NEW HOPE: With counselling and emotional support from the Society for the Physically Disabled’s case management programme, Mr Jimmy Tan, seen here with his mother, Madam Ang, has become less demanding and is considering taking up vocational training. — DESMOND WEE

HOUSEWIFE Ang Ah Poh, 62, was at a loss when her son Jimmy suffered a stroke at the age of 32 that impaired his movement.

Depressed and unable to cope, he refused to speak. His temper soured and his mother, his main caregiver, bore the brunt of it.

Those were tough times, recalled Madam Ang in Hokkien.

‘I waited on him hand and foot after his stroke, but I’m old and it was difficult to manage,’ she said.

Luckily, five months ago, the Society for the Physically Disabled (SPD) put Mr Jimmy Tan on its new specialised case management programme, which turned things around for both mother and son.

Madam Ang said: ‘With counselling and emotional support, he has become less demanding and more independent and is even considering taking up vocational training in future.’

The society hopes to repeat this early success with those who need help to cope with the stress and challenge of living with disability.

Previously, there was no service providing continuous counselling, case management and early access to resources and services after discharge from hospitals, said SPD’s head social worker, Ms Lim Lutin.

At present, hospital staff can link a disabled patient to services offered by different voluntary welfare organisations (VWOs), depending on his needs.

But it is done on an ad hoc basis and, since there is no follow-up, there is no way of knowing whether the patient is using these services.

‘Some have told us they would not have felt so lost if someone had followed through that journey with them,’ said Ms Lim. Her team has come across cases where disabled people have shut themselves away from society for years because they do not know how to get help.

‘We need to be there to motivate the client to think about what to do with his life after his disability, because life has not ended yet,’ said Ms Lim.

Catching them when they are ‘in transit’ between hospital and home is critical because this is a difficult period of adjustment, when both the patient and caregiver need plenty of support, she said.

So the SPD will put in place a system whereby hospitals or VWOs can refer such cases directly to SPD for ‘holistic’ help.

If necessary, SPD will link the clients – mostly adults – to other services it offers, such as therapy or vocational training.

More networking is needed though.

Currently, just Tan Tock Seng Hospital Rehabilitation Centre in Ang Mo Kio has tied up with SPD. It connects patients to SPD’s ‘specialised case management programme’ about a week before patients who suffer physical disabilities are due for discharge.

Since last October, when the pilot programme was rolled out, the team has seen about a quarter of its annual target of 400 patients.

The pilot programme was given $300,000 in funding, to last two years, from the National Council of Social Service.

Said Madam Ang: ‘For poor folk like me, unable to read English, having a social worker show me how I can help my child help himself makes me happy.’

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April 5, 2007

Think doc has overcharged you? Turning to Case only recourse now

SMA decision was made with ‘great reluctance’

Other professional groups relooking fee guidelines

# Before choosing a doctor, shop around if possible.

Both the Singapore Medical Association (SMA) and the Consumers Association of Singapore (Case) recommend that patients call a few clinics to get an idea of how much the market rate might be for a certain treatment.

# Check surveys of actual charges and bill sizes for an idea of what reasonable rates are.

The Health Ministry’s website has information on average bill sizes for the 70 most common hospital procedures.

By the end of this year, it will also publish on its website the average bill size of treatment for chronic conditions like diabetes, high blood pressure, high cholesterol and stroke at private clinics.

Later this year, the SMA will publish results of its survey of charges in primary care clinics.

Next year, it will make public survey results for charges for more common procedures in private specialist clinics.

# Check the clinic’s counter, signboards or brochures for consultation charges.

Doctors have been advised by the SMA to display them prominently.

# Whenever possible, ask your doctor beforehand for the expected range of costs for consultation, tests and treatment.

The SMA has recommended that doctors conduct financial counselling with patients

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May 4, 2007

CHANGES TO ELDERSHIELD

3rd insurer bids to be provider

Aviva joins Great Eastern, NTUC Income in tender for new five-year term

By Salma Khalik, Health Correspondent

A THIRD player may enter the market to provide severe-disability insurance cover for those aged 40 and up.

Aviva has joined Great Eastern Life and NTUC Income in tendering for one or more openings as providers of ElderShield insurance plans.

The other two insurers have been ElderShield providers since its 2002 debut. Tenders for the new five-year term, which starts on Sept 30, closed last Monday.

The Ministry of Health (MOH) appoints insurers in five-year blocs, although they are required to guarantee payouts to policyholders for the rest of their life. Premiums and payouts remain unchanged during the five years, but insurers must hand out rebates if their payouts are less than projected in that time frame.

Health Minister Khaw Boon Wan said yesterday the premiums proposed by the rival companies look competitive ‘at first glance’.

Current ElderShield premiums stand at about $149 a year for men and $190 for women, who join the scheme at age 40. These have turned out a little high for a current payout of $300 a month for up to five years.

Rebates are therefore on their way. The amount will be announced in August.

Unlike in ElderShield’s first five years, insurers will be allowed to offer enhanced schemes in the coming five years, besides the basic plan.

From Sept 30, the basic scheme will likely pay out $400 a month for up to six years. Premiums should not rise by more than $10 a month.

Criteria for a payout remain the same. An individual has to be disabled enough to need help with any three of the following: bathing, walking, eating, going to the toilet, dressing or moving from bed to chair.

Any insurer that wants to offer add-on schemes must also offer the basic one. This is to prevent insurers from cherry-picking and offering only the enhanced schemes, where profits are likely to be higher.

It is believed all three companies have submitted plans for enhanced schemes, which may offer higher payouts, payouts over longer terms or at lower levels of disability.

MOH said yesterday the number of insurers picked will depend on the competitiveness of the bids, insurers’ experience with long-term care plans and how much they are willing to put into ElderShield.

Mr Khaw added that this tender is breaking new ground, so his ministry will take its time to pick the best deal for Singaporeans.

About 750,000 people are insured under ElderShield. At the end of last year, 2,366 had made successful claims.

What happens after the Eldershield pay out ends?

To a disabled person, who can’t even manage his/her daily activities, will payouts from five to six years really matter?

If the person is permanently disabled, it is remote that this person will ever recover! Can this person work for a living?

How then is this elderly disabled person going to get funds to support themselves?

I hope this revamp will really benefit the elderly disabled.

Alternative is to have a plan should oneself be on the disabled! What are your options? Contact us on your planned health needs.

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May 18, 2007

Case File                                         

$26K IN CASH, GEMS STOLEN IN BREAK-IN

THE office of a furnishing company at LHK Building in Sims Drive was robbed after it had been locked by staff members on Tuesday evening.

The break-in was discovered about 9am the next day when a staff member reporting for work noticed a glass window pane facing the common corridor had been forced open and left ajar.

A number of workstations had been ransacked and drawers forced open. Cash amounting to $130 was missing from a cash box. An assortment of foreign currencies totalling $6,000 and jewellery worth $20,000 were also stolen.

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April 23, 2007

Look out for add-ons to supplement ElderShield

They can be bought separately and may pay higher benefits over longer periods

By Salma Khalik, Health Correspondent

EXPECT a slew of insurance plans to protect the elderly against disability in their later years.

With the introduction of supplementary schemes for ElderShield that can draw on Medisave accounts for as much as $2,000 a year in premiums, insurers can afford to be creative in what they offer.

Tenders for such schemes were put up on April 2.

The anticipated new schemes will be on top of the basic ElderShield – the national severe disability scheme – which will be changed to provide people who qualify with payouts of $400 a month for up to six years.

Several insurance companies plan to offer supplementary schemes when the new five-year period for ElderShield starts in September.

They can be bought separately by anyone who already has ElderShield. Thus, someone insured by one company for basic ElderShield may buy a supplementary scheme from another insurer.

The five-year-old disability insurance, meant for the elderly who need full-time help to do simple things like going to the toilet or eating, has come in for heavy criticism over the low payouts and the need to have at least three disabilities before a claim is allowed.

While the basic scheme will likely stick with the current criteria, supplementary ones are expected to be open to creative enhancements.

According to the tender documents, they could offer higher benefits, pay over longer periods, be less strict on the definition of disability, and offer no-claim discounts too.

But the underlying principle remains – so they may not offer surrender value which allows a policy holder to collect a lump sum payment if he stops the insurance after a certain number of years.

After all, the scheme is meant to provide coverage for the rest of a person’s life.

But the supplementary schemes are allowed to offer an initial lump sum payment of three months’ worth of benefits, since the initial period of disability may be a greater financial drain.

They may also extend payment for up to three months after the death of the person, to help with funeral and other expenses.

Dr Lam Pin Min, a member of the Government Parliamentary Committee (GPC) for Health, said that with people living longer, ‘the importance of the disability insurance scheme will be even greater’.

Allowing as much as $2,000 from Medisave to be used on premiums, he said, would encourage people to ‘take up appropriately and adequately covered disability insurance schemes’.

Madam Halimah Yacob, who heads the GPC, noted that such enhancements ‘will not be suitable for older Singaporeans with low savings’.

Health Minister Khaw Boon Wan has proposed that the basic scheme should also be improved, by increasing the monthly payouts from the current $300 to $400, and the period of payment should go up from five to six years.

This will mean higher premiums, even for the basic scheme. But he has pledged that this will not exceed $120 more a year. Premiums paid depend on the age at which a person joins ElderShield.

At age 40, women pay about $190 and men $150 a year. If they join at 60, women pay $845 and men $630 a year. Payment stops when they are 65 years old, but coverage will be for life.

The tender document also stated that current policy holders who want to remain on the existing plan may do so. There is also a scheme which allows people who stop after paying a minimum amount, to get a pro-rated payout starting at $100 a month, should they become disabled.

salma@sph.com.sg

http://www.abundance2insure.com

April 4, 2007

Among them: Higher payouts and a two-tier scheme

By Judith Tan

Proposed changes

A TWO-TIER ElderShield has been proposed by the Ministry of Health (MOH) – the basic plan, and an add-on providing for higher payouts.

The basic ElderShield scheme, in place for the past five years, will be retained for all Singaporeans to pay for long-term disability care.

The second tier, referred to by Health Minister Khaw Boon Wan as ‘ElderShield Supplements’, will be offered by insurers at higher premiums, payable in part by Medisave.

In addition to the proposed new tier, several other tweaks to improve ElderShield have also been suggested (see box), and MOH launched a public consultation exercise yesterday to gather feedback on the changes.

Among the main revisions: A proposal for payouts on the basic scheme to go up from $300 to $400 a month, with repayment periods extended to six years, from the current five. This will raise payouts to a maximum of $28,800, up from the present $18,000.

But Mr Khaw said yesterday that ‘this big jump would require a few dollars’ increase in premium’. Because of this increase, he said, there was a need to consult Singaporeans.

Proposed changes

Current ElderShield

· Payouts – $300

· Payment period – Five years

· Insurers – NTUC Income, Great Eastern Life

· Supplementary products – Not allowed

· Assessment fees – Out-of-pocket payment: $25 at clinics, $100 for house calls

Proposed ElderShield

· Payouts – $400

· Payment period – Six years

· Insurers – Open to more insurers

· Supplementary products – Allowed (subject to MOH guidelines)

· Assessment fees – Fees reimbursed to successful claimants

http://www.abundance2insure.com

By Kelvin TanRecent newspaper articles have highlighted the importance of estate planning here in Singapore. While numerous countries like Malaysia, Hong Kong, India, Australia, New Zealand, Italy, Sweden and Canada have actually done away with such taxes. Below are some news articles which highlight this issue.

March 11, 2007

Why estate duty should die a quick death

THERE was much disappointment among Singaporeans and tax experts when the much-hoped-for scrapping or tweaking of the estate duty did not materialise this year.

Instead, the Government has opted to postpone its decision over what to do with the tax until next year.

Some people reckon that it should be abolished. Their arguments include the following:

It’s a double whammy for taxpayers: A taxpayer is taxed twice – once on his income which is used to acquire the assets and again on the value of his assets when he dies.

It’s an unfair exemption limit for movable assets: The lower exemption limit of $600,000 on movable assets such as cash and shares means that many middle-income earners would be slapped with the tax.

And these are the people who may not be financially savvy enough to minimise the potential tax paid through estate planning.

March 11, 2007

Death can be taxing for the living

With rising affluence, more Singaporeans may find themselves having to grapple with estate duty

By Lorna Tan, Finance Correspondent

FOR such a sombre topic, the death tax has been generating some very lively debate of late.

It has continually popped up in Budgets over recent years, including the recent one, while letters about it were still appearing in The Straits Times Forum page last week.

The attention reflects the fact that increasing numbers of Singaporeans who do not consider themselves rich are waking up to the fact that they are not immune from the snares of the tax, which kicks in if a deceased person has assets over a certain limit.

March 11, 2007

What can be done to minimise estate duty?

Q MY BROTHER, 54, who was single, died last year. He had willed all his money to our mother, who is about 80 years old now. My younger brother, 41, and myself, 42, are also not married and are named as executors to the will. In all, he left behind about $1 million in cash and a commercial property that was under his name alone. There is a small outstanding mortgage on this property.

My question is whether this money is subject to estate duty if our mother were to die? If so, what can be done to reduce or avoid being taxed? Estate duty of about $32,000 has already been paid and the Letter of Probate obtained. The monies are now in a joint account under my brother’s and my name.

Currently the best policy for estate planning is to plan now and review it regularly. Even if you give your assets away, there is a 5 year claw back! i.e. Should you die within the 5 years, your gifts will be taxable! Some methods of planning your estate are by wills, trust and gifts.

Contact us for more information and advice www.Abundance2Insure.com

Ricky Ng and Associates are Professional financial planners with expertise in life, medical, financial, retirement, estate and investment planning. Representing Great Eastern Life, one of the largest insurance company in Singapore.

An alternate site with the same post can be found at http://getprotection.blogspot.com/

March 28, 2007

ADB lifts growth forecast for Asian economies

It expects pickup in consumer, business sentiment to even out weaker exports

MANILA – THE Asian Development Bank (ADB) raised its growth forecast for Asia excluding Japan on expectations that a pickup in spending by consumers and companies in the region will cushion the impact of weaker exports.

Asia’s developing economies will expand 7.6 per cent this year, faster than the 7.1 per cent estimated in September, the Manila-based lender said yesterday. The pace will quicken to 7.7 per cent next year, it said in its Asian Development Outlook 2007 report.

Rising incomes and increased employment across Asia are boosting consumer spending and encouraging companies to lift investment.

That will help sustain the region’s economies this year even as slowing growth in the United States and Europe dampens demand for made-in-Asia exports, according to the ADB.

China and India are likely to continue to drive Asia’s expansion. The ADB lifted its 2007 forecast for China to 10 per cent from 9.5 per cent estimated six months ago, while India may now expand 8 per cent instead of 7.8 per cent.

Asia’s rate of expansion this year is still expected to trail that of last year, when the region grew an ‘exceptional’ 8.3 per cent, the ADB said. The lender also expects growth in the US, Japan and euro zone to slow, pushing world trade volumes lower this year.

‘These projections imply that growth will move on to a more sustainable footing and that overheating pressures that surfaced in 2006 will gradually abate,’ the ADB said. In Asia, ‘net exports’ contribution to growth will soften, but strengthening domestic demand will fill part of the gap’.

Slowing inflation stemming from lower oil and commodity prices and as a result of previous interest rate increases may encourage central banks to cut borrowing costs this year, the lender said. Inflation pressures in South-east Asia may ‘subside significantly’, the ADB said.

‘Most developing countries are very cognizant of overheating,’ Mr Ifzal Ali, the bank’s chief economist, said in an interview in Tokyo. ‘Monetary policy will have a major role in bringing this under control.’

Asian central banks raised rates more than 25 times last year to curb inflation, control lending and limit inflows from overseas that were creating asset bubbles in their markets.

‘As the pass-through effects of high oil prices comes to an end, there may be scope for interest rates to come down,’ the lender said, citing Indonesia and Thailand which have already begun lowering rates.

The 10 economies in South-east Asia will grow 5.6 per cent this year, and accelerate to 5.9 per cent next year, the ADB said.

Said Mr Bill Belchere, an economist at Macquarie Securities in Hong Kong: ‘Domestic demand cycles are stronger in South-east Asia and are being reinforced by policy, whether that is cutting interest rates or adding fiscal stimulus.’

China is taking steps to boost domestic demand and curb a reliance on exports and investment for growth. Premier Wen Jiabao this month said the nation’s economic expansion is unstable and environmentally unsustainable.

Risks to the region’s growth this year include slowing demand for electronic goods and a resurgence of inflation should oil or commodity prices rise, the ADB said.

Crude oil has dropped about 20 per cent since reaching a record US$78.40 per barrel on July 14 last year. It was US$62.61 yesterday.

‘The global electronics cycle could turn in 2007, which would negatively affect export prospects particularly for East and South-east Asia,’ the report said. ‘The relief that lower prices are currently bringing to budgets, to inflationary pressures and to import bills is welcome, but should not be counted on.’

BLOOMBERG NEWS

The Asian markets are moving! What investment should you look at? How do you invest? What investments will yield the best returns?

Contact us for your reliable needs based investment advice

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March 27, 2007

Which University?

For four years now, students have been able to apply to all three local universities, and choose where to go once acceptances come in. So the universities strive to be different – in their programmes, admission criteria and fees. The Straits Times Education Correspondent Sandra Davie takes a look at the choices offered by the universities

Degrees

THERE are the local single degrees, of course. A few years ago, double degrees were all the rage. Now it is the global degree route. These are proving popular as more companies look out for employees with a global outlook.

NUS: It offers the widest range of degrees among the three universities. Its exclusive courses are medicine, architecture, dentistry, music, pharmacy, nursing, and project and facilities management.

Global degrees:

Bachelor of Arts (Honours) with the University of North Carolina at Chapel Hill.

Bachelor of Computing (Communications & Media) and Master in Entertainment Technology with Carnegie Mellon University.

Bachelor of Engineering (Civil Engineering) with the University of Melbourne.

NTU: It has expanded its range of courses in recent years to include social sciences and fine arts. Its exclusive offerings include art, design and media, aerospace engineering, communication studies, maritime studies and education (conducted by the National Institute of Education).

Global degrees:

Double degree in Biomedical Sciences and Medicine (Traditional Chinese Medicine) with Beijing University of Chinese Medicine.

Double MBA degree programme in Management of Technology with Japan’s Waseda University.

Bachelor of Engineering (Computer Science) from NTU and Master of Science (Computer Science) from Georgia Institute of Technology

SMU: Positioning itself as a boutique business university, it offers four-year, full-time programmes in accountancy, business, economics, information systems management and social science. It has introduced a new one, law, which will take in 90 students in its pioneer batch.

Global degrees:

Bachelor of Science (Information Systems Management) degree from SMU and master’s degree from Carnegie Mellon University.

Fees

THE three universities announced in January that they will not raise tuition fees this year in view of the upcoming increase in goods and services tax (GST).

SMU, anyway, has a lock-in system for its fees, which will not be raised over the duration of one’s course even if fees are increased for later intakes.

Some parents and students prefer this lock-in scheme, because it allows them to plan ahead and set aside a specific amount of money.

Both NUS and NTU have said they are considering a similar scheme.

NUS ANNUAL FEES

Dentistry and medicine: $17,520

Music: $7,570

Nursing: $7,000

All other courses: $6,110

NTU ANNUAL FEES $6,110

SMU ANNUAL FEES $7,500 (except law which is $9,000).

Example

If you are planning to send your child to University.

Gender: Female Age: 4 next birthday

For Singapore, using SMU annual fees of, $ 7,500.00

Age of entry to university 18 (Females)

This amount is needed for Years 4

Total amount needed for Local Course fees $ 30,000.00

Shortfall will be needed in Years 15

Education cost, I feel will increase annually by about 6%

Education Costs 15 years later $ 71,896.75 (after inflation)

SHORTFALL to Fund Education

Lump Sum in today dollars needed to meet the shortfall $ 53,420.34

OR Monthly savings per month for 15 years $ 342.26

Have you done your children’s education planning?

Will you have enough savings when the times comes for your children’s education?

Give your children a head start with an education policy!

Contact your reliable needs based-advisor on how to have a discipline savings plan that provide protection and education funds for your childrens University

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April 2, 2007

Student loans: No defaults, say banks

By Cheryl Tan

LOAN SHIRK?: Better not default, or my guarantor will have to pick up the tab.

THEY may owe money, but they’ll pay it back.

Banks offering student loans to undergraduates at Singapore’s universities say they have yet to encounter defaulters. Some even repay their loans early.

That is a far cry from students in the United States.

In November, the USA Today newspaper cited a credit analysis report which stated that unpaid student loans had put two out of three million people in their 20s surveyed in bad debt.

Such loans, along with credit card debt, had even caused up to 1.5 million of those surveyed to stop repayments altogether, forcing lenders to sell these debts to a collection agency.

The worst cases have had their cars repossessed or sought bankruptcy protection.

Singapore students are another breed altogether.

Credit Counselling Singapore’s assistant director Tan Huey Min said 20somethings do seek help after overspending on credit cards, but not for student loans.

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Just imagine your poor child with a huge loan to repay even before nailing a job! Give your children a head start in life with an education policy! There are numerous plans that provide a force savings for parents to provide a lump sum of monies to pay for their children’s education. Some of such insurance plans in Singapore are:-

Endowment

With the costs of higher education rising, it makes sense to plan for your child’s future by investing in Endowment Classic, a savings plan with potential higher returns than regular bank deposits that combines savings with protection in one plan.

Premiums on Endowment Classic are guaranteed, and you can choose to have the policy mature when your child is ready to enter university. The resulting returns from your sum assured, as well as all attaching bonuses, would come in handy when it’s time to pay those hefty tuition fees.

You are also covered against death and total and permanent disability should the unforeseen happen.

Life Policies with Savings rider

Whole life protection with premium payment required only for 20 years (Flexi20). Ideal for newborns – For example, sign up for a 1-year old infant and by the time the child is 21 years old, his policy would have been fully paid for. No additional premium is required while he continues to enjoy protection for life.

In the meantime the saving rider will mature at the university age yielding a lump sum amount for the child’s education where ever he may wish to study. But the main policy continues providing protection and accumulation through out their life until surrender.

Life Policy using Investment linked products

GreatLink SupremeLife is an insurance policy designed to meet your protection and investment needs in a smart and secure way. It ensures you and your family are financially protected while investing for the future.

This comprehensive regular-premium investment-linked plan combines whole life protection with investment opportunities aimed at achieving returns on your savings. From a low minimum monthly premium of $100, you will enjoy protection benefits of the basic sum assured and the total investment value of your funds invested.

More importantly, SupremeLife gives you the control and flexibility to allocate more of your premium towards protection as your financial liability rises or potentially higher investment returns as your protection need decreases near retirement.

Which plans best suit your child or children?

Contact your reliable needs based adviser today!

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