Singapore Expats

Hi,

We've recently got PR granted and now I'm trying to figure out all these CPF things.

There is an option for either use the Medisafe portion as it is or alternatively to spend some of it for a health insurance. AFAIK there are only 4 approved insurances: AIA, Asia Life, Great Eastern and NTUC. Comparing these I think NTUC may be the best option when I look at the premium development vs. age. Would be nice if somebody could post personal experiences. No agents argumentation please, I will not buy from you .

On the other hand these insurances cover only hospitalization (I have a standard AIA coverage, 5$ doctor, with the company). Is there a possibility to get a full and if possible international insurance coverage in 1st class using the CPF medisafe money?

Thanks!
Mac

hi. CPF issues can be found on cpf.gov.sg it should be quite informative but quite confusing. Another way is to look for adviser to seek their consultancy.

Basically every year you will receive a CPF statement to show the balance in your 3 sub-account: Ordinary, Special and Medisave. With Ordinary account, you can pay for the housing instalment and deposit with HDB or private properties (residential or commercial, conditions applied). If you have kids who are full time students with reginised institutions ounder CPF-education scheme, your kids can used your CPF ordinary for their education, again terms applied here. Special account you cannot touch unless all of oirdnary account is used up for housing and you run into financial problems. Medisave is purely for hospitalisation payment of certain amount.

There are a few insurance scheme that CPF will provide to its member: DPS (Dependent Protection Scheme), HPS (Home Protection Scheme) and Medishield.

Both Ordinary and special account can be used for investment under CPF-approved investment vehicles such as unit trusts, stocks, annuities and gold. Be careful and do your research when investing.

As you just got your PR, the 1st year contribution is 4% of your wage and 5 % from your employer. It will be increased from 2nd year onwards. Your CPF account will continue and will not be terminated as long as you stay in Singapore (even not working). You can only terminate your CPF account through certain legal procedures to "vow" that you are leaving Singapore and west malaysia permanently.

Take note that CPF ordinary account gives 2.5% interest while special and Medisave gives 4% each. This is reviewed quarterly and may change according to the computation by CPF. However, the good news was it did not change for the past 1 year eventhough the bank interest rates are lowered.

As for your health insurance queries, it is a "law regulation" that government want all CPF members not to rely on government susidy but to also pay partially from our Medisave account which is called co-payment, so that CPF members do not exploit the Medisave/Medishield/health insurance scheme. You can only get health insurance from insurance companies which will pay full hospital bills.

Also, beware of how you do your income tax filing. As a PR, SIR will check quite thoroughly on your declaration at least for the 1st time.

My advice to you is if you decide to stay in Singapore for quite some years, do understand the system here well from some advisers or your colleagues. Though some Singaporeans may not even know their own country's system so clearly, it is always good to search through internet.

I am a certified AFP which consumer know me as Financial Planner, that's how I know the local system so well. Only 12% of local advisers are AFP like me. For more advice you can email me: [email protected]

regards

hsu hsia