A simple yet endearing gesture from AXA [The thought that counts]

Posted 1 March, 2018 by Clearly
in Opinion




Insurers have been “shaking up” the premiums in their Integrated Shield Plan to reflect the rising costs of health care. And by shaking up, we mean increasing. Sometimes dramatically.

There has been much consternation in the street, decrying the wanton consumption that is driving up health care costs – possibly into an impossibly expensive spiral.

We’ve written about this issue here, here and here – but that is not the focus of this article.

What we really want to highlight, is that sometimes a small action does go unnoticed – but it needn’t be that way.



The smallest gestures are sometimes the most endearing. Here’s a doggie pic, just because.


To understand the significance of that small gesture, we need to have an idea about how premiums for IPs can be paid for – either by cash or using Medisave.

For example, if the annual premium for a plan is $500, and the nice folks at CPF allow up to a yearly limit of $600 of Medisave withdrawal (depending on age of applicant), then the full premium can be settled using Medisave.

But if the annual premium for a plan is $800, then only up to the first $600 can be paid by Medisave. The rest has to be paid by cash.

The need for cash outlays usually come in for older folks, since their premiums usually start to outstrip the yearly allowable limit from ages 45 – 50 onwards, depending on insurer.


A small revision from AXA


The good folks at AXA noticed for a small age band of their IP (Shield Plan A), the premiums were $3 over the annual allowable yearly limit – hence any applicants or policy holders in that band had to cough up three cold, hard dollars in cash on top of their Medisave.

From 6th March 2018 onwards, they will be revising the premiums for that band downwards by $3, hence eliminating the need for additional cash.

Here is a before and after comparison, Shield Plan A (for Age Next Birthday 46 – 50).



Total Annual Premium: $603
Yearly Deduction by Medisave allowed: $600
Cash Top Up required: $3


Total Annual Premium: $600
Yearly Deduction by Medisave allowed: $600
Cash Top up required: $0


In summary: No extra cash required


The biggest wow for us


The premium discount is hardly worth mentioning, and it wouldn’t even qualify as a rounding error on their books. The value in this gesture isn’t in the money that the customer saves, it removes an extra hoop that the customer has to jump through.

What we can see from this trend: Insurers are really starting to place the customer to the forefront, instead of simply providing lip service. For the longest time, the industry has been repeating “the customer comes first” as a mantra – but it is only in recent years that we’ve noted a real commitment to their words.

And that, can only mean better things for us in the future.

Read about what Manulife and AIA did just this very year as well.

Let us see who is the next insurer to step up!


www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

Yes we love coffee, doggies, customer-ccentricity and children – in no particular order.

  1. Fact checked

    Seriously pure marketing material, most companies do not have this problem at this age band because they are cheaper ie. Not even near the limit in the first place.
    The issue with the $3 is also 2 fold, it creates administrative issues for the company to have to handle for 5 additional years, for a measly 3 dollars. It also prematurely remind it’s policy holders that they are approaching the age where they have to top up cash, prompting a review and comparison leading to a potential switch to a competitor.
    Your articles are not bad but it’s getting more sponsored marketing recently.

    1. Clearly

      It isn’t sponsored. I wish it were.

      Appreciate your comment about our articles though. If you would like to make a contribution to help keep us going, contact us anytime.

    2. What an ASSWIPE

      @Fact checked
      Oi fuck face, dont act clever if you dont even have 2 brain cells to rub together. why would an insurer spend money to advertise that they give a 3 dollar discount?

      if you are so damn cynical, do us all a favor and remove yourself from the gene pool. ppl write for free you complain what fuck.

      every article written needs to be paid for some way or another. if you dont quite understand this fact of life i suggest you check with your mother,teacher, or gay bff. fuck off

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