Prudential covers corporate clients' staff till age 100

Firms with group hospital insurance plans with Prudential Singapore will now be able to cover their staff until they reach 100 - if they want to work that long.

The insurer on Tuesday said it raised the age cap from 69 to 100 for group medical coverage for employees of its corporate clients and its own 1,200 staff on Sept 1. The plans cover hospital and surgical, outpatient medical and dental expenses.

It also raised the maximum age coverage for its group term life, accidental death and dismemberment and major medical plans to a range of 70 to 74, up from 64 to 69.

Mr Jeff Ang, Prudential Singapore's head of enterprise business solutions, said the changes aim to fulfil the needs of the greying workforce here. Singapore residents have the longest lifespan in the world, with an average life expectancy of 84.8 years.

Mr Ang told The Straits Times yesterday: "With rising healthcare costs and the need for a bigger retirement nest egg to last these increased years, employees need greater support in their extended careers. Employers need to support their aspirations by making workplaces age-friendly.

"By providing insurance till age 100, we want to help employers attract and retain their senior talent, and we want to provide their employees the peace of mind that their needs are taken care of with greater coverage."

Mr Jeff Ang, Prudential Singapore's head of enterprise business solutions, said the changes aim to fulfil the needs of the greying workforce here. Singapore residents have the longest lifespan in the world, with an average life expectancy of 84.8 years.

He declined to provide the number of corporate clients and workers who will benefit from the two age changes, but said they will not impact premium rates for employers.

Prudential cited a survey it carried out last year with the Economist Intelligence Unit, which found that Singapore residents wanted their companies to provide more financial benefits such as medical insurance to support them in their extended careers.

Last month, Prudential also raised the Central Provident Fund contribution rate it pays for its employees above age 55 to 17 per cent, bringing it up to the level it pays for younger staff.

A version of this article appeared in the print edition of The Straits Times on September 05, 2019, with the headline 'Prudential covers corporate clients' staff till age 100'. Print Edition | Subscribe