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All about CareShield Life

careshield life supplement family

ElderShield just got a big and amazing upgrade! It’s now got a new name with better benefits and better coverage called CareShield Life.

Read on to find out what this new insurance scheme is all about!

What is CareShield Life?

Starting October 1st, 2020, or when you turn 30 years old (whichever is later), all Singaporean citizens between the ages 30-40 years old are automatically under a new long-term care plan. CareShield Life is a plan that offers lifetime coverage as well as monthly cash payouts to the severely disabled. This is to help shoulder the costs in the long run.

You are considered severely disabled if you need daily assistance in any of these 3 Activities of Daily Living (“ADLs”) :
– Washing
– Dressing
– Feeding
– Toileting
– Walking or moving around indoors from room to room on level surfaces
– Transferring from a chair to the bed and vice versa

careshield life supplement ADL
6 Basic Activities of daily living (ADL)

CareShield life will provide an average payout of $600 a month starting from 1st October 2020, for as long as you remain severely disabled. These payouts will increase by 2% a year from 2020 to 2025. Thereafter, payout increases and corresponding premium adjustments will be recommended by an independent CareShield Life Council.

CareShield Life premiums are fully payable by Medisave. Family members are also able to help you pay through their own Medisave accounts or top up your Medisave with cash.

What are the premiums?

Premiums will start automatically when you are 30yrs old and end when you are 67yrs old. The premiums are starting at $206 for men and $250 for women, aged 30.

In line with increasing payouts, for the first 5 years, premiums will also increase at the rate of 2% yearly.

Do keep in mind that once you have started claiming your payout, the payout amount will remain fixed throughout the duration of your severe disability.

What happens if I cannot afford to pay the premiums for CareShield Life?

There are 2 kinds of subsidies that the government is offering to make premiums more affordable.

1. Transitional Subsidies

Singapore Citizens will be given a total of $250 in the first 5 years to help pay off their annual CareShield Life premiums.

2. Means-Tested Subsidies

Means tested subsidies will also be available to Singaporeans in lower to middle income households, depending on their monthly per capita household income. For households with a Per Capita Household Income (PCHI) of $1,200 or less, there will be a 30% subsidy. For households with a PCHI between $2,000 to $2,800, there will be a 20% subsidy.

Additional Premium Support

Families who are unable to pay for premiums even after premium subsidies and family support, may also be eligible for Additional Premium Support.Eldershield vs CareShield Life – what are the differences?

The differences between ElderShield and CareShield is obvious with a huge gap between the two. Residents are automatically enrolled into the schemes but the difference here is that you can opt out of ElderShield but this choice is unavailable with CareShield. CaresShield Payouts are significantly higher; it lasts a lifetime instead of just 6 years and is universal.

ElderShieldCareShield
Coverage DetailsOptional coverage for those 40 years and above.Universal Coverage for 30 years and above (starting 1 Oct or when you turn 30 years old)
Premiums IncrementsStays the same for the term2% per year increments from 2020 to 2025. Thereafter, as determined by the CareShield Life Council.
EnrollmentAutomatically enrolled (but can opt out)Optional for those born in 1970 or earlier.
Compulsory for those born in 1980 or later
Pre-existing conditionsSubject to a case by case basisYes
Duration of PremiumFrom age 40 to 65From age 30 to 67
AdministrationPrivate Insurers (Aviva, Great Eastern, NTUC Income)Government
EligibilityExcludes individuals with pre-existing disabilitiesIncludes all (includes pre-existing disability or conditions)

Although it is not compulsory for citizens under ElderShield to switch over, the option is still available. Those that have decided to switch over to CareShield Life will have to pay more premiums by topping up.

Do I need a Careshield Life Supplement Plan?

Purchasing a CareShield Life Supplement Plan can complement your CareShieldLife cover.

You can increase your Monthly Benefit from $600 per month to as high as $5,000 per month and also opt to receive a payout upon the inability to perform 2 Activities of Daily Living.

To find out more on CareShield Life supplements, click here.

InsureDIY has financial advisers that can help you make the right choice and answer any of your questions. Simply email us at sg_service@insurediy.com anytime!