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ElderShield vs CareShield. Should I switch?

What is CareShield Life?

Introduced by the Singaporean government in October 2020, CareShield Life is a mandatory, long-term care insurance for all Singaporeans and Permanent Residents. CareShield Life is designed to provide financial protection for all Singaporeans, especially for the more vulnerable, such as the lower-income group and individuals with pre-existing severe disabilities, to have basic protection for long-term care needs.

With CareShield Life, even individuals with pre-existing disabilities, who are otherwise unable to enjoy coverage, are protected. CareShield Life premiums are fully payable with MediSave. You will pay for premiums from the age you join (starting from 30 years old), until 67 years old, but remain covered for life. However, if you are unable to pay your premiums, there are government support schemes available, so you won’t lose your coverage due to financial difficulties.

What’s the Difference Between ElderShield and CareShield Life?

There are a few differences between ElderShield 400 and CareShield Life. Check out the table below for a clearer comparison:

ElderShield 400 CareShield Life
Monthly payout S$400 S$600
Payout increment None. Payout increases annually* until 67 years old, or when a claim is made.
*Payout amount will increase by 2% per year for the first five years.
Payout duration 72 months (6 years) after your first claim. Lifetime payouts, even when you stop paying premiums.
Annual premium amount Men: S$175
Women: S$218
Men: S$206*
Women: S$253*
*Premium amount will increase by 2% per year for the first five years.
Entry Age/ Age when premium payment starts 40 years old 30 years old
Age when premium payment ends 65 years old 67 years old
Fully payable by MediSave Yes Yes
Government subsidy No Yes
Possible to make a claim overseas? Yes Yes
Includes individuals with pre-existing disabilities No Yes

If you still can’t decide whether you want to stay or switch, here are a few scenarios for you to consider:

I can’t upgrade my existing ElderShield Coverage, should I switch?

If you’ve tried to upgrade your existing ElderShield coverage, but got declined because of pre-existing medical conditions, you should consider switching to CareShield Life. This would be beneficial as all Singaporean Citizens and Permanent Residents born in 1980 or later, including individuals with pre-existing medical conditions, will be able to enjoy benefits under CareShield Life. In other words, you’ll be able to enhance your insurance coverage, have higher starting monthly payouts and lifetime payouts (if you are severely disabled) with CareShield Life.

If you’re currently on ElderShield, switching to CareShield Life is only possible if you are not severely disabled. 

I only want to pay for the basic plans, without any supplements, should I switch?

If you feel that you’re still young and healthy, so you just want a basic, no-frills plan, you can consider making the switch to CareShield Life. With a slightly higher premium, you’ll be able to enjoy higher payouts each month and lifelong disability payouts, as compared to ElderShield’s payouts for 6 years after your first claim. Furthermore, both ElderShield and CareShield Life can be fully funded using your MediSave funds, so you shouldn’t have any additional out-of-pocket expenses.

With CareShield Life’s basic plan, you should be able to build a solid long-term care plan foundation. However, do note that CareShield Life’s premium may increase over the years; the amount of future premiums are still yet to be determined.

I already have ElderShield Supplements, should I switch?

If you already have existing ElderShield supplements or other long-term care insurance that pay higher monthly disability benefits than CareShield Life, you should do some maths to consider which plan helps you get the most and longest payouts, with the least premium payable. If your current ElderShield plan and supplements already provide better coverage than CareShield Life, and you prefer fixed premiums that do not increase, you can consider to remain with ElderShield. However, if you’ve found a CareShield Life supplement plan that is better than your current plan, you can consider switching to CareShield Life and its supplement plans. Do take note that if you are born in 1979 or before, there’s no option to opt out from CareShield Life after the 60 days free-look period.

All in all, you have to decide what’s best for you, to stay or switch. If you’re still on the fence or need help deciding, feel free to speak to our consultants or Whatsapp us for more information (Mon to Fri: 9am – 5pm). If you are switching to CareShield Life and want a higher and more comprehensive coverage, do check out our CareShield Life supplement plans

This is for general information only and does not constitute financial advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.


Posted in Life & Health