I am glad to read the news reported on Sunday Times, "Automatic MediShield cover for kids" 28 October 2007. It is basically a good move and I would like to add on and share on what I did recently with my Shield Plan.
What would you do with $1878.30? For many, it may mean a holiday trip or a new set of plasma/ LCD/ HD TV. For car lovers, it may mean sprucing up their cars with new mods or accessories. And the list goes on......
For me, it means 100% hospitalization fees coverage for my 11-month old daughter for the next 25 years. Recently, I opted for the "As-charged" preferred plan (for my daughter) offered by Income. The $1878.30 that I mentioned earlier is the net present value (compounding returns @ 4% per annum) that I would need to set aside now to pay for 25 years' worth of her medical insurance rider's premiums. The main policy's premiums will be paid for by my medisave account.
I felt very relieved the moment I calculated this $1878.30 is about all I need if my daughter were to be hospitalized for any condition that requires hospital attention. I tried running some imaginative "simulations" in my mind, thinking what contingency to do in case the unthinkable happens. I "concluded" that if anything of the unthinkable were to happen, the first thing is to send my precious to whichever hospital or specialist that can cure her, and the last thing on my mind would be the hospital bill size. All because of this realization and decision to set aside $1878.30 today in exchange for the "relief". And this "relief" can last me for the next quarter century until she is well-equipped and ready to stand on her own feet in her working life. While I fully understand that the premiums are not guaranteed down the road and that I may not get 4% returns every year, at least having a small plan like this beats nothing at all.
I may or may not be able to provide her with extraordinary luxuries down the road, but at least I know I can provide her the best medical assistance available because of the decision I make now. She may not understand why we cannot have plasma/ LCD/ HD TVs now or later in her growing years. But I know I will thank myself for it in time to come.
