Ironic to restrict use of Medisave for insurance
From Jan 1, Medisave contributions have increased by one percentage point. This is no incentive for the self-employed who are well-insured.
If one is allowed to use Medisave for all of one’s insurance policies, well and good, but current Central Provident Fund (CPF) policies are too restrictive.
I dutifully set aside around S$500 to S$600 of my monthly income on whole-life and medical insurance, which sees to my medical needs until the age of 100. However, I am still required to contribute additional funds yearly to Medisave.
Except my hospitalisation cover, my other insurance policies — which provide for loss of income and will take care of my needs in case of critical illness, personal accident and total permanent disability — must be paid using cash.
It is ironic that CPF members are allowed to use their retirement savings to dabble in stocks and other risky investment products, but are restricted in using their Medisave to buy life policies and coverage for illness, disability and accidents.
Singaporeans should rightly make provisions for their medical needs. But increasing the Medisave contribution and restricting the use of our Medisave money to pay for insurance is more of a burden than benefit for the self-employed, certainly in my case.
