When it comes to insurance, many women share a familiar frustration: We do our best to live healthily, but the higher premiums we pay for certain insurance make us feel like we have manoeuvred ourselves into a corner.
The recent debate over CareShield Life premiums is a prime example. Looking at the comments on social media, many Singaporean women clearly felt they had been dealt the short end of the stick.
CareShield Life is Singapore’s mandatory long-term care insurance scheme that gives lifetime monthly payouts to Singaporeans who become severely disabled and require assistance with daily living. It aims to offer basic financial protection against the high costs of long-term care, with premiums paid during working years.
Payouts are triggered when you are assessed as severely disabled (unable to perform three or more activities of daily living). At age 30, before subsidies, a woman pays approximately S$264 in annual premiums compared with a man's approximate premium of S$223.
This is where things can get heated. When CNA Women spoke with Larissa Tiang, a 45-year-old secondary school teacher, she did not hold back in expressing her displeasure at how CareShield Life is priced for women. “Just because women have a longer life expectancy in general doesn’t necessarily mean we should pay higher premiums,” she said.
Tiang felt that since women get lower starting salaries than men (due to National Service being recognised by many employers as “work-adjacent experience”) and are generally paid less for doing the same jobs, paying more for CareShield Life premiums is adding insult to injury.
Vanessa Chew, a 50-year-old wedding planner, agreed: “If we can level the playing field when it comes to starting salaries for men because of NS, why can’t the government try to even out the healthcare costs for women in our old age?”
Some Singaporean women argue that just because women live longer doesn’t mean they should pay higher insurance premiums. (Photo: iStock/MicroStockHub)
This sentiment is shared by a number of Singaporean women who believe that the government could do better in spreading out the social good. If a woman earns less over a lifetime, puts in more towards the unpaid labour of caretaking, then when it comes to taking care of her in old age, CareShield Life premiums should even out this inequality.
“At both our peak earning periods, many men benefit from women putting their careers on hold for the family – ‘the greater good’. So, it makes sense that towards the end of our lives, we women can benefit from the men too,” argued Chew.
Tiang and Chew believe that CareShield Life is hiding behind gender differences instead of addressing gender inequality. “Is it really about insurance or about doing right by the female half of your population?” asked Tiang.
“The national service we perform here is the childbearing and the caregiving work that we do,” said Chew. “It’s unpaid, and the career breaks we take because of caregiving often set us back in the professional world. The higher premium we pay for CareShield Life is, to me, the biggest pink tax we pay for simply being women.”
Whether premiums are affected by gender, race or lifestyle, it is evident that insurance pricing is a nuanced landscape that requires a fair bit of unpacking.
When I shared Larissa’s comments with a male friend, he said: “It’s best to let math win. Everyone has a different story. You could argue that when a woman decides to become a stay-at-home mum, her husband has to shoulder the entire financial needs of the family.
“In that instance, the man here is at a disadvantage. Instead of having more disposable income that he could invest or spend on himself, a large percentage of his money now goes towards the family.”
The counter-argument to a woman becoming a stay-at-home mother is that her husband then has to shoulder the entire family’s financial needs. (Photo: iStock/miodrag ignjatovic)
In insurance, the “math” here refers to actuarial science. Actuaries are professionally trained in pricing the risks relative to the benefits and payouts of insurance products.
Life Insurance Association Singapore (LIA), the industry body representing life insurance companies here, told CNA Women that the key factors actuaries consider include the detailed risk profiles of the expected group of insured individuals and the associated costs of distribution and servicing.
“This comprehensive approach ensures that premiums accurately reflect the underlying risks and operational requirements,” said a spokesperson from LIA.
The industry body said actuaries rely on large pools of anonymised data to price insurance benefits.
In a nutshell, risks are factored into the pricing to keep premiums fair for everyone.
The Life Insurance Association Singapore (LIA) encourages consumers, regardless of gender, to refer to The Basic Financial Planning Guide as it educates them about their insurance needs based on life stages. Here are some important points:
In your 20s: Lay a strong foundation by securing basic health insurance as well as income protection, such as early critical illness coverage.
In your 30s: Plan for escalating financial responsibilities. If you’re starting a family, maternity insurance becomes crucial, said LIA. If you anticipate taking a career break to care for your children or parents, consider income protection to safeguard your earning potential. “Some modern plans even extend to fertility treatment coverage or mental wellness support, recognising the holistic needs that arise during these busy years,” said an LIA spokesperson.
In your 40s: Strengthen retirement planning during these peak earning years – make sure your savings and investment growth are on track, and potentially increase critical illness and life insurance coverage.
In your 50s and beyond: Shift priorities to ensure you can “age in place”, meaning you will be able to live independently in a familiar place, such as your own home, in your golden years. The likelihood of developing multiple chronic diseases also rises, so ensure sufficient health insurance protection that meets those needs.
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The short answer is, no.
Yvonne Lim, a financial consultant from Prudential Assurance Company Singapore, said: “I understand why there has been so much noise surrounding the CareShield Life premiums, but people also need to know that there are valid reasons for the first tier of underwriting to be done this way.”
Lim said: “Typically, women pay more for disability and health insurance because women, on average, tend to live longer than men, and may have a higher chance of developing certain disabilities. This is why long-term care or disability-type plans, like CareShield Life, charge women a higher premium.
“Men usually pay more for motor insurance, term insurance and whole life insurance because statistically, men tend to be riskier drivers and have lower life expectancy, meaning the insurer is more likely to pay out a claim sooner.”
Some events, such as a medical emergency, are too expensive to handle on our own and can clean out our savings, which is where insurance comes in. (Photo: iStock/eyesfoto)
The concept behind this is known as “risk pooling”, LIA said, where premiums from all policyholders fund a shared pool of claims.
“Women find themselves paying more for individual health insurance due to factors like higher use of medical services, more frequent exams, and costs related to maternity care,” explained Lim. “In a nutshell, we have ‘more parts to maintain’.”
We need insurance because some events are too expensive to handle on our own. Medical emergencies, long-term care needs, or a fender bender can derail even the most carefully laid out savings plans.
Insurance helps cushion the financial impact, allowing us to pay for these situations without wiping out our savings.
For women across different age groups or life stages, your insurance needs should take into consideration your priorities, health and financial goals. This is where costs can quickly add up.
“Nobody can know for sure if they will be making a claim,” Lim said. “So it’s more like a ‘just in case it really happens, I don’t have to pay everything myself’ scenario. When you pay an insurance premium, this is the scenario you are paying for."
CNA Women is a section on CNA Lifestyle that seeks to inform, empower and inspire the modern woman. If you have women-related news, issues and ideas to share with us, email CNAWomen [at] mediacorp.com.sg.
Continue reading...
The recent debate over CareShield Life premiums is a prime example. Looking at the comments on social media, many Singaporean women clearly felt they had been dealt the short end of the stick.
CareShield Life is Singapore’s mandatory long-term care insurance scheme that gives lifetime monthly payouts to Singaporeans who become severely disabled and require assistance with daily living. It aims to offer basic financial protection against the high costs of long-term care, with premiums paid during working years.
Payouts are triggered when you are assessed as severely disabled (unable to perform three or more activities of daily living). At age 30, before subsidies, a woman pays approximately S$264 in annual premiums compared with a man's approximate premium of S$223.
This is where things can get heated. When CNA Women spoke with Larissa Tiang, a 45-year-old secondary school teacher, she did not hold back in expressing her displeasure at how CareShield Life is priced for women. “Just because women have a longer life expectancy in general doesn’t necessarily mean we should pay higher premiums,” she said.
Tiang felt that since women get lower starting salaries than men (due to National Service being recognised by many employers as “work-adjacent experience”) and are generally paid less for doing the same jobs, paying more for CareShield Life premiums is adding insult to injury.
Vanessa Chew, a 50-year-old wedding planner, agreed: “If we can level the playing field when it comes to starting salaries for men because of NS, why can’t the government try to even out the healthcare costs for women in our old age?”
Some Singaporean women argue that just because women live longer doesn’t mean they should pay higher insurance premiums. (Photo: iStock/MicroStockHub)
This sentiment is shared by a number of Singaporean women who believe that the government could do better in spreading out the social good. If a woman earns less over a lifetime, puts in more towards the unpaid labour of caretaking, then when it comes to taking care of her in old age, CareShield Life premiums should even out this inequality.
“At both our peak earning periods, many men benefit from women putting their careers on hold for the family – ‘the greater good’. So, it makes sense that towards the end of our lives, we women can benefit from the men too,” argued Chew.
Tiang and Chew believe that CareShield Life is hiding behind gender differences instead of addressing gender inequality. “Is it really about insurance or about doing right by the female half of your population?” asked Tiang.
“The national service we perform here is the childbearing and the caregiving work that we do,” said Chew. “It’s unpaid, and the career breaks we take because of caregiving often set us back in the professional world. The higher premium we pay for CareShield Life is, to me, the biggest pink tax we pay for simply being women.”
UNDERSTANDING HOW PREMIUMS ARE PRICED
Whether premiums are affected by gender, race or lifestyle, it is evident that insurance pricing is a nuanced landscape that requires a fair bit of unpacking.
When I shared Larissa’s comments with a male friend, he said: “It’s best to let math win. Everyone has a different story. You could argue that when a woman decides to become a stay-at-home mum, her husband has to shoulder the entire financial needs of the family.
“In that instance, the man here is at a disadvantage. Instead of having more disposable income that he could invest or spend on himself, a large percentage of his money now goes towards the family.”
The counter-argument to a woman becoming a stay-at-home mother is that her husband then has to shoulder the entire family’s financial needs. (Photo: iStock/miodrag ignjatovic)
In insurance, the “math” here refers to actuarial science. Actuaries are professionally trained in pricing the risks relative to the benefits and payouts of insurance products.
Life Insurance Association Singapore (LIA), the industry body representing life insurance companies here, told CNA Women that the key factors actuaries consider include the detailed risk profiles of the expected group of insured individuals and the associated costs of distribution and servicing.
“This comprehensive approach ensures that premiums accurately reflect the underlying risks and operational requirements,” said a spokesperson from LIA.
The industry body said actuaries rely on large pools of anonymised data to price insurance benefits.
In a nutshell, risks are factored into the pricing to keep premiums fair for everyone.
INSURANCE FOR YOUR 20S, 30S AND BEYOND
The Life Insurance Association Singapore (LIA) encourages consumers, regardless of gender, to refer to The Basic Financial Planning Guide as it educates them about their insurance needs based on life stages. Here are some important points:
In your 20s: Lay a strong foundation by securing basic health insurance as well as income protection, such as early critical illness coverage.
In your 30s: Plan for escalating financial responsibilities. If you’re starting a family, maternity insurance becomes crucial, said LIA. If you anticipate taking a career break to care for your children or parents, consider income protection to safeguard your earning potential. “Some modern plans even extend to fertility treatment coverage or mental wellness support, recognising the holistic needs that arise during these busy years,” said an LIA spokesperson.
In your 40s: Strengthen retirement planning during these peak earning years – make sure your savings and investment growth are on track, and potentially increase critical illness and life insurance coverage.
In your 50s and beyond: Shift priorities to ensure you can “age in place”, meaning you will be able to live independently in a familiar place, such as your own home, in your golden years. The likelihood of developing multiple chronic diseases also rises, so ensure sufficient health insurance protection that meets those needs.
Collapse Expand
DO WOMEN ALWAYS PAY MORE?
The short answer is, no.
Yvonne Lim, a financial consultant from Prudential Assurance Company Singapore, said: “I understand why there has been so much noise surrounding the CareShield Life premiums, but people also need to know that there are valid reasons for the first tier of underwriting to be done this way.”
Lim said: “Typically, women pay more for disability and health insurance because women, on average, tend to live longer than men, and may have a higher chance of developing certain disabilities. This is why long-term care or disability-type plans, like CareShield Life, charge women a higher premium.
“Men usually pay more for motor insurance, term insurance and whole life insurance because statistically, men tend to be riskier drivers and have lower life expectancy, meaning the insurer is more likely to pay out a claim sooner.”
Some events, such as a medical emergency, are too expensive to handle on our own and can clean out our savings, which is where insurance comes in. (Photo: iStock/eyesfoto)
The concept behind this is known as “risk pooling”, LIA said, where premiums from all policyholders fund a shared pool of claims.
“Women find themselves paying more for individual health insurance due to factors like higher use of medical services, more frequent exams, and costs related to maternity care,” explained Lim. “In a nutshell, we have ‘more parts to maintain’.”
We need insurance because some events are too expensive to handle on our own. Medical emergencies, long-term care needs, or a fender bender can derail even the most carefully laid out savings plans.
Insurance helps cushion the financial impact, allowing us to pay for these situations without wiping out our savings.
For women across different age groups or life stages, your insurance needs should take into consideration your priorities, health and financial goals. This is where costs can quickly add up.
“Nobody can know for sure if they will be making a claim,” Lim said. “So it’s more like a ‘just in case it really happens, I don’t have to pay everything myself’ scenario. When you pay an insurance premium, this is the scenario you are paying for."
CNA Women is a section on CNA Lifestyle that seeks to inform, empower and inspire the modern woman. If you have women-related news, issues and ideas to share with us, email CNAWomen [at] mediacorp.com.sg.
Continue reading...