Note: This post below has been updated on 1 April 2026.
Unanswered Questions from Debunking Insurance Pitches: Upgrade or Overpay?
1. How does Havend recommend policies while balancing the flat numbers on each policy, and the reliability of claim process via each different brand?
We consider needs, policy benefits, underwriting outcome, insurer’s financial strength, premium and our experience working with the claims team to make a holistic recommendation. Rest assured that all insurers do their claim assessment fairly according to the terms and conditions of the contract and will not reject any claims without proper reasons.
2. About hospitalisation plans, what are the consideration factors to choose the “upgrade” or basic? e.g. AIA Gold Max should upgrade or downgrade?
To consider whether you should upgrade or downgrade a hospitalisation plan these factors should be considered.
- What is your healthcare expectation? In the event of hospitalisation, if you are content to be treated in restructured hospital, then you might not need the highest plan.
- What is the speed of care that you require? For private hospitals, the speed of care is faster.
- Would you like the widest range of doctors to choose from? Plans that cover Private hospitals would also give you a wider range of doctors to choose from.
These factors differ from individual to individual and so, it would be best to speak to your advisor to determine this.
3. Is the new hospital rider plan worth switching to if I already have the older plan?
While the new rider comes with it more affordable premiums, there are a few changes, namely there not being any deductibles coverage as well as a higher co-payment cap. The implication to this is there would be higher out-of-pocket expenses and the possibility that smaller bill sizes will not be covered. If you favour better coverage, it would be advisable to maintain the older plan for as long as you can afford to.
Learn more about the new IP rider changes and the accompanying implications here.
4. I am 55 this year and bought a Pru ILP about 25 years ago, covering critical illness and death/TPD. How should I review this plan given the escalating protection costs – in particular, what criteria or considerations are relevant to me? What are my options?
Thank you for the question, we notice that this question is highly personal in nature, and while we’d love to address it, giving a general response may not do justice to your specific situation.
To ensure you receive advice that is relevant and meaningful, we encourage you to reach out to us directly at communications@havend.com. Our team would be happy to take a closer look and guide you more appropriately based on your individual circumstances.
We look forward to supporting you further.
5. I missed what Omar said about critical illness traditional plan, what’s the advice?
The main reason why one should get a critical illness plan is to ensure that in the event of diagnosis of a critical illness, the client is able to take time of work and focus on recuperation, while ensuring that there is no break in the income chain. LIA Guidelines suggest a coverage of 2 to 5 years of your Annual Income to cover for this. You can also consider keeping on the policies if they offer additional Critical Illness coverage to cater for alternative treatments or cancer treatments not on the cancer drug list, even going into your retirement years.
6. Given the recent controversy of Prudential denying CI payout. My CI plans are more than 25 years old. And one of them is an ILP. I’m considering terminating the plan as I was disillusioned with how insurance companies can just deny claims based on lots of T&Cs. Also, it seems like one might need to be at terminal stage before they can claim, especially for older plans. Comments please?
While we’re not able to comment on the recent case, we completely understand why it may raise concerns.
When considering whether to keep or terminate a plan, it’s important to look at your overall protection needs first. For example, if your ILP is tied to a whole life policy and your health situation has changed over time, you may find it difficult to secure a new life policy with comparable coverage. In such cases, maintaining an existing plan can sometimes continue to play an important role in your protection portfolio.
Beyond that, the decision should also take into account your current financial position, including your assets and liabilities, whether you still require the level of coverage, and, specifically for ILPs, your comfort with market fluctuations over the long term.
Given the complexity, it may be helpful to review your policies holistically before making any changes. You can speak with your advisor, or feel free to reach out to us via our website or through email (communications@havend.com), we’d be happy to walk through your situation with you and provide more tailored guidance.
7. I am already 61 and hold a few whole life insurance policies bought a long time ago. The only term insurance bought had expired recently and could not be extended. I have pre-existing conditions and I don’t think I can buy a new term plan or add on critical illness rider. How would Havend help clients like myself?
It depends on your current assets and liabilities, whether there even is a need to add on to your current coverage (if any). It could be a case where while you are unable to add on to your coverage due to your pre-existing condition, your assets might be enough to ensure that in the event of catastrophic events, you are able to self-insure. We would recommend you to write in to us via our website or through email (communications@havend.com) so that we are able to go into your specific portfolio and advise accordingly.
Learn more about whether you might need permanent life insurance should you outlive your term insurance here!
8. I have the NTUC Income Enhanced shield preferred plan with classic assist rider and made a hospital surgery claim before for thyroid cancer. Is it advisable to switch to the new rider lower premium plan if I still want to retain the same private hospital option or keep status quo?
While the new rider comes with it more affordable premiums, there are a few changes, namely there not being any deductibles coverage as well as a higher co-payment cap. The implication to this is there would be higher out-of-pocket expenses and the possibility that smaller bill sizes will not be covered in the event of a claim. If you favour better coverage, especially to counter against the risk of a relapse, it would be advisable to maintain the older plan for as long as you can afford to. This is also in relation to whether you are able to afford the premiums in the long run. Write in to us via our website or through email (communications@havend.com) for us to assess your portfolio and advise you accordingly.
Learn more about the new IP rider changes and the accompanying implications here.
9. For retirees 55 years old & above, do you have any advice on dividend paying policies with yield that higher than CPF OA (2.5%)?
If your question is about asking if you should buy a plan or investment that pays a return higher than CPF OA interest, then it will depend on your objective. At Havend, we believe your foundational retirement should be safe and reliable without having to invest or expose to market volatility risk. Hence, we would recommend retirement annuities that could provide a guaranteed income as well as a projected bonus, that potentially gives a return of 3%+. You can enquire with us via our website or through email (communications@havend.com) for specific discussion on this topic!
10. My children have already started working and would I need to continue keeping my whole life policy at 60? I have more policy I no longer need pay premiums and another I will need to continue paying the premiums into my 80s.
To consider whether you should keep paying for your policy and retain the polices that you have already completed paying for, a few factors should be considered, mainly:
- Do you still require the coverage? Since your children have started working, they might not be financially dependent on you anymore and so the death benefit which is primarily to maintain the dependents’ standard of living might not be necessarily so important. However, the policies do include critical illness coverage, you might consider keeping it to be used for alternative treatment or for treatments not on the cancer drug list, especially if the premiums have already been paid.
- Are you still able to afford the premiums? If you are approaching retirement, you might want to consider the premiums for the plan that still requires you to pay for the coverage and it goes back to point (1), and whether your current assets are able to support the premiums into your retirement years.
It is a little challenging to know exactly what advice to give without looking into your current portfolio and assets so write in to us via our website or through email (communications@havend.com) and we will gladly assess your needs in greater detail.
11. I have bought life policy with critical illness coverage because my life policy is fully paid for before my retirement and will continue providing me with coverage after retirement whereas a term plan would cover only till before retirement. I am single and needs the coverage. Is life policy still important for me?
While the need for death coverage is not important, assuming that you do not have any dependents, the critical illness coverage is still useful to have into your retirement years to provide coverage for alternative treatments for example, TCM treatments or for treatments not on the cancer drug list, in the event of diagnosis of cancer. Since the life policy will be fully paid before your retirement, it would be useful to keep the policy for the above reason.
12. I bought some whole life policies many years ago. I’m now 63, retired, single and have no dependents. What are the considerations whether to redeem these policies? Thank you.
It goes back to the intention of the policy. In this case, a whole life plan will pay out in the even of demise. If you do not have any dependents, then the need to maintain a whole life plan is lower. However, you can consider keeping on the policies if they offer additional Critical Illness coverage to cater for alternative treatments or cancer treatments not on the cancer drug list.
13. Term insurance premiums can be very high if a policy owner buys it in their 60s. Should he consider buying a universal life policy instead as the premiums could be less than a term insurance? Also, the premiums would not be sunk cost as the policy owner can surrender the policy if they are in need of liquidity.
While it is true that Term Insurance premiums can be very high if a client were to buy in their 60s, we would need to ascertain if there is a need for coverage, especially if the client is retired. Since the need to replace an income in the event of death reduces in importance after retirement since, there is no income to protect, he might not even require any coverage at all. Furthermore, with a universal life, to get a coverage as high as a term plan, the premiums might be similar or higher, depending on the age group and what it is invested into, as well as exposing the client to additional investment risks. To determine whether this is something that is required, write in to us via our website or through email (communications@havend.com) for an assessment on which is the best option.
14. For someone who is about to retire; CPF is at FRS already, I find myself with excess funds and was advised to place them in an annuity account with an insurance company that promise a lifetime monthly payout till death. However, the terms for this annuity are that there would be no interest payout on the first 2 years; interest payout only commence on the 3rd year onward. What advice do you have for me.
To determine whether this is a policy that would add value to your portfolio, we would first need to determine what level of income you would like to receive during your retirement years. After that we would take your FRS into account, as well as your other assets to see if there is still a remaining shortfall. Only then then we will be able to see if this plan truly suits your needs in ensuring that you have a safe and reliable income stream, during your retirement years. For a more comprehensive assessment of your portfolio, write in to us via our website or through email (communications@havend.com) and we will assess what would the best option be.
If you would like to see a case study of how Insurance Annuities to supplement one’s retirement income (CPF monthly payouts), read this article!
15. I am retired now and have some whole life policies that I held on to them for many years. It was said that there are no benefits to continue the policies. Should I redeem them. Thanks.
It goes back to the intention of the policy. In this case, a whole life plan will pay out in the event of demise to ensure that your income is protected in your income earning years. Since you are retired, theoretically, there is no more income to protect and so the need to maintain a whole life plan for the death coverage it may provide reduces. However, you can consider keeping on the policies if they also offer additional Critical Illness coverage to cater for alternative treatments or cancer treatments not on the cancer drug list.
16. Which type of policy can appoint secondary life assured?
This is commonly seen in plans like whole life or endowment policies structured for two individuals (e.g. spouses/children) with a long policy term. Under such policies, there is a primary life assured and a secondary life assured. The policy can either pay out on the first death or continue coverage until the second life assured passes on, depending on how it is designed.
17. Is a rider needed if one has an IP plan that covers public hospital ward A?
If your Integrated Shield Plan already covers Ward A in a public hospital, you’re already well covered for major medical expenses.
The main gap to consider is the deductible and co-insurance, which can still amount to a few thousand dollars per claim. A rider is designed to reduce or cap this portion, giving you more certainty on your out-of-pocket costs.
So, the decision really comes down to your comfort level. If you have sufficient savings and are okay handling that potential amount, a rider isn’t strictly necessary. But if you prefer to minimise unexpected expenses and have greater peace of mind, then adding a rider would be a prudent enhancement to your coverage.
Learn more about the new IP rider changes and the accompanying implications here.
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