How do you when is the right time to downgrade great supreme health p plus + great eastern great total care ( classic P) to a lower tier when of old age?

Hi anon,

It is a stark reality the hospitalization plan premiums increase with age, almost exponentially.

We can't control that. However, we can plan for that. The premiums for age 75 that you see now will not apply to you when you reach 75, in all likelihood, it will be higher.

Having private hospital coverage is about having options. Typically, the best or most experienced doctors in their respective fields are in private practice and if it is a life or death scenario, you (or your family) will likely want to have the option to speak to the top minds about your situation.

I prefer to take a longer term view to the issue, which is to plan and include such costs in the planning for retirement, so that you can afford it in retirement.

Hi,

Premium at older age will definitely be the main factor when determining whether it is the right time to do a downgrade. When you starts to feel abit painful when paying the premium, maybe you should consider downgrading it at the next renewal.

Another factor to note is that GE's P plan rider now uses Claims-Adjusted Pricing. If there is a claim of more than $2k at a private hospital, your rider's premium will increase at the next renewal. However, if there is no claim for the policy year, there will be a 20% discount provided one is currently at the Standard Level premium rate.

Claims-Adjusted pricing is only at the Private ward level. Hence, if you are not comfortable with the claims-adjusted pricing and do not mind staying in govt hospital, you can consider downgrading your plan now.

Hope I have answered your question.

Cheers.