With a blink of an eye, we have now come to the end of the March. This also marks the end of the 1st quarter of 2018. For the market, March can be described as a month of volatility with the STI dropping 2.44% from 3,513.85 to 3,427.97, occasionally crossing the 3,300 range during the last few days of the month. 

On the other hand, the SGX S-REIT 20 Index was trading sideway from 1,239.088 to 1,244.381, with an increment of 0.43%. 

One of the significant events is probably the signing of the executive memorandum on 22 Mar that would impose retaliatory tariffs on Chinese imports, which raised the prospect of a trade war. 

I have initially intended to review each and every counter in my portfolio but decided to keep this a short post as i have recently just got back from Taiwan for vacation and am busy with a financial programming project which I will publish soon. 

Action in March

I have initiated a position in Starhill Global REIT("SGR") at $0.715. The write-up on SGR can be found here.

Portfolio

As I have only started to review the portfolio formally from Feb, I have omitted the portfolio value in Jan. With the addition of SGR to the portfolio, my portfolio value has finally broke the $50,000 mark. This is perhaps one of the many milestones to achieve in this long financial journey. 

In order to keep track of my progress, I will also occasionally update my Portfolio page. 

Dividend

January and March were dry dividend months for me. The dividend i have collected thus far is from STI ETF in Feb. 

Total dividend collected: $79.50
Average dividend/month: $6.63

*Exchange Rate
1 EUR : 1.6158 SGD

Following from the previous post on the Pyramid of Insurance Needs, I will touch on the Hospitalization component of the pyramid in this post. Citing a common saying: "One can die, but cannot fall ill", it underscores the growing concerns of the high healthcare cost in Singapore. In my opinion, hospital bills can potentially have a devastating impact to your wealth. While I am thankful that I have not been admitted to hospital before (touch wood!), I understand that we should not be taking good health for granted. Given that hospitalization usually incurs huge expenses, it is thus prudent to ensure that there is sufficient health coverage in this area. 

MediShield Life

All Singaporeans and PR are provided universal coverage under MediShield Life, including those with pre-existing conditions. It is a basic health insurance plan that helps to pay for hospital bills and outpatient treatments. Implemented from Nov 2015, the premium for Medishield Life can be paid in full via Medisave, hence minimising cash payment. 

MediShield Life payouts are pegged at Class B2/C wards in public hospitals. It can be used to subsidize the bills incurred for Class A/B1 wards in public hospitals or in private hospitals, however the payout will only make up a smaller proportion of the bills. Another thing to note is that patients will still be required to pay the deductible and co-insurance component of the bills. To put it simply, deductible refers to the fixed amount (first layer of the bill) that the insured has to pay whereas co-insurance refers to a percentage of the medical bills (second layer of the bill) which the insured has to pay on top of the deductible, before he can start filing for claims under MediShield Life.

Typically, the types of wards are as follows: 

• Private Hospital: Single to 4 bedded room, Air-conditioned, TV
• Public Hospital Class A: Single or 2 bedded room, Air-conditioned, TV
• Public Hospital Class B1: 4 bedded room, Air-conditioned, TV
• Public Hospital Class B2: 5 or 6 bedded room, naturally ventilated
• Public Hospital Class C: 8 to 10 bedded room, naturally ventilated

Integrated Shield Plans ("IP")

This is where the private insurance plans for hospitalization comes in. They exist in the form of IP that provide additional private insurance coverage, typically to cover medical expense in higher-class wards (ie. Class A/B1) in public hospitals or private hospitals. 

To find out if you have any existing IP, you can log into your CPF > My Messages > Insurance. I have included the premium comparison tables for all 6 insurer below.

Additional Withdrawal Limits ("AWL") 

Before we proceed to examine the IP premium, you will be glad to know that AWL was introduced from 1 Nov 2015 to help Singaporeans pay for part or all of the additional premiums for the private insurance component of Medisave-approved IPs, using Medisave. 



The AWLS amounts for the respective age groups are as follows: 

For example, if the premium for your additional private insurance coverage is $215 when you are at the age of 28, you do not have to fork out any cash as the AWL of $300 will fully cover the premiums. 

However, if the premium for your additional private insurance coverage is $380 when you are at the age of 35, the cash outlay will be $80 as the AWL will cover the premiums, up to the aforementioned cap.

Premium Comparison Table

Public Hospital Ward Class A and below

Public Hospital Ward Class B1 and below

• Level of coverage: How comfortable will you be staying in either ward class A/B1 in public hospital or private hospital if you are required to be hospitalized? 
• Scope of coverage: Does the IP Shield Plan provide a comprehensive coverage such as inpatient/outpatient hospital treatment and overseas medical treatment?
• Policy Exclusion: Do you have any pre-existing illness medical conditions which the IP Shield Plan will exclude coverage of?
• Ability to choose your own doctor: How much do you value the choice of your preferred doctor? 
• Claim Limits: One of the key consideration is to understand the maximum amount you can claim which can take the form of a policy limit, lifetime limit or annual limit. 
• Riders: One should also give thought to the available riders and examine its suitability to complement the IP Shield plan. (eg. coverage of deductible / co-insurance)
• Affordability of future premium: As with Medishield Life, the premiums for Shield plans tend to increase as the policyholder becomes older. Besides the current premium, it is vital to also consider the affordability of the future premiums.
• Claims Processing Duration: How long it will take for the insurer to process IP claims with positive payouts? For example, according to the MOH website, Great Eastern has a higher median claim processing duration as compared to other insurers.

Disclaimer: Kindly note that this is not a sponsored post. The author is in no way affiliated with any of the insurers and does not receive any form of remuneration for this post. The Boy who Procrastinates has compiled the information for his own reference, with the hope that it will benefit others as well.

Reference

NTUC Enhanced IncomeShield

Prudential PRUshield

AXA Shield

• Life/Term Insurance: Pays a lump sum to the dependants upon death of insured which can be used to pay for final expense and outstanding debts, etc. 
• Hospitalization: Pays for hospital bills and outpatient treatments
• Critical Illness: Pays a lump sum should you be diagnosed with the covered critical illness
• Disability: Pays a fixed amount periodically to replace the lost income in the event that you are unable to work due to disability