It is a good idea to do voluntary top ups of our CPF-MA. Enjoy income tax relief (for the recipient of the top up) and also earn 4% interest per annum.
We will all grow old and fall sick. It is only natural.
Not to be saddled with huge medical bills which we find impossible to pay, I am sure all of us will agree that having a good hospitalisation and surgical (H&S) insurance policy is important.
Of course, a good H&S insurance policy is not going to be cheap but would you believe me if I were to tell you that we could possibly get one for free?
Free? Am I nuts? Well, maybe, but this is how I look at it:
Build up our CPF Medisave Account (CPF-MA), stay healthy and not use the money in our CPF-MA for as long as possible.
Yes, that is all there is to it. Why?
The CPF-MA attracts a 4% annual interest and if our CPF-MA has enough funds, the interest it pays would be enough to cover the insurance premium annually.
Of course, some might say that the premium to be paid will increase as we age and there could come a time when the interest earned is not enough to pay the premium. This is a valid point and almost bound to happen.
This is why, although some lament that the CPF-MA's ceiling has been raised once again, I am quite happy that it has been raised. This means that I will have more funds in the CPF-MA earning higher interest to offset my H&S plan's insurance premium in future. It is a good thing, in my opinion.
My CPF-MA shows:
Interest earned: $1,654.48
Incomeshield: $ 665.00
Total drawn from CPF-MA: $ 900.04
I think I will probably be getting "free" medical insurance for many more years to come.
Top up your CPF-MA or your loved ones' CPF-MA, if you can afford to do so.
The interest earned will go towards getting that "free" medical insurance that so many people I know want to have in Singapore. We will get it with some effort and a bit of help from the government.
Maximum sum for the CPF-MA, which will be raised annually to keep pace with the higher draw on Medisave by the elderly, will go up from $48,500 today to $49,800 next January. (ST, 2015.)
2. Enhanced Incomeshield for my mom.
3. How much for H&S insurance?