- Question on the need for Daily Cash Rider

Question on the need for Daily Cash Rider

Written by Wilfred Ling

Sunday, 30 May 2010

Question from an existing client: "I received a brochure from NTUC regarding the Daily Cash Rider for my hospitalization plan (Preferred Plan). It charges $150 annual premium for the daily cash benefit of $150/day and get-well-benefit of $300 upon discharge from hospital. Do I need to respond to it? In your opinion, do you think it's worth taking up the offer?"

Answer: "The Daily Cash Rider / Get Well Benefit is meant to replace lost of income as a result of hospitalization. However with good financial planning, such short-term lost of income should be borne through an emergency cash of at least six months. So there is no necessity to buy the Daily Cash rider / Get Well Benefit. Not everything need to insure. For long-term lost of income, your existing disability income insurance is meant to hedge against that risk."

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