More coverage with CareShield Life for 42 & older

If you are 42 or older this year, here’s some news on the insurance front that you would “care” to know.

You can now sign up for CareShield Life, the national long-term care insurance scheme which gives Singaporeans basic financial support if they become severely disabled, and require personal and medical care for a long period of time.

When CareShield Life was launched in October last year, the scheme was made compulsory for those born in 1980 or later. However, participation remains optional for those born in 1979 or earlier, with applications starting from November 6 2021.

CareShield Life replaces ElderShield, which was introduced in 2002 as the new basic long-term care insurance scheme providing higher amounts of payouts over a longer duration, in the event of severe disability^1.

The cash payouts increase annually until you reach 67 years old or when a successful claim is made, whichever is earlier. The amount starts from $612 monthly in 2021, up from ElderShield’s fixed payouts of $300 or $400 monthly.

CareShield Life also provides payouts for life, for as long as the policyholder remains severely disabled. In contrast, ElderShield payouts are limited to just up to 60 or 72 months.

For convenience, existing ElderShield 400 policyholders born between 1970 and 1979 and who are not severely disabled will be automatically enrolled into CareShield Life from December 1 this year. However, if they do not wish to remain on the CareShield Life scheme, they can choose to opt out by December 31, 2023.

Given the ageing nature of Singapore’s demographic, it is particularly important to plan for one’s future long-term care needs, and this insurance scheme can do just that.

According to the Ministry of Health, one in two healthy locals aged 65 could face severe disabilities in their lifetime. But, disability may happen sooner than expected.

Disabilities may occur from accidents or result from medical conditions or illnesses, such as strokes or spinal cord injuries or sustained through the deterioration of chronic conditions such as diabetes.

They could also be the result of age-related illnesses, such as arthritis and dementia.

However, you cannot predict when disability may affect you. So how would you know how much to save for long-term care without depleting your savings?

Insurance schemes like CareShield Life, supplemented with GREAT CareShield, hence bring that reassurance by providing sufficient long-term care coverage.

Minimal or no cash may be needed for CareShield Life premiums as they can be fully paid for with MediSave funds.

You can also help your family members, such as your spouse, children, parents, siblings and grandparents, pay for their premiums with your own MediSave, or top up their MediSave with cash.

To ensure that all Singaporeans can afford CareShield Life, there are also other Government subsidies and support measures in place.

They include subsidies for Singaporeans in lower- to middle-income households, the amount of which is based on their Monthly Per Capita Household Income.

If someone is unable to afford the premiums even after all the subsidies and family support, they may be eligible for Additional Premium Support.

“These premium subsidies and support measures ensure that CareShield Life premiums remain affordable. No one will lose their CareShield Life coverage because of the inability to afford their premiums,” said the Ministry of Health.

On top of the standard CareShield Life scheme, there are other ways you can supplement your plan, to increase your benefits and better cover yourself for any future unfortunate events.

Great Eastern’s GREAT CareShield supplements CareShield Life’s coverage, by providing  monthly payouts² and a lump sum Initial Benefit of up to S$15,000*, if you are unable to perform just one of the six Activities of Daily Living (ADL) - washing, toileting, dressing, feeding, walking or moving around and transferring.

Under this plan, if you are unable to perform at least two ADLs, it will also provide additional monthly payouts³ in the form of Caregiver Benefit and Dependant Care Benefit. This additional financial support will come in handy to help your loved ones who are supporting you on your recovery journey, for a full-time caregiver, alternative care arrangements or other long-term care needs.

Another reason to hop on this? You may not need to fork out any cash for GREAT CareShield supplement, as it too can be paid for with your MediSave funds, up to a maximum of S$600 per calendar year per insured person.

Not convinced?  With a recurring 20% off your premiums, you will enjoy more premiums savings throughout your coverage period. Take advantage of this premium savings and apply online today!

Footnotes
¹ Severe disability refers to the inability to perform at least 3 out of 6 Activities of Daily Living (ADLs): washing, toileting, dressing, feeding, walking or moving around, and transferring.

² Subject to Deferment Period. 50% of the selected Monthly Benefit will be paid out upon the inability to perform 1 ADL. 100% of the selected Monthly Benefit will be paid out upon the inability to perform at least 2 ADLs. The payouts will be for as long as the Life Assured continues to suffer the relevant number of disabilities.

³ Subject to Deferment Period. The Caregiver Benefit is payable up to a maximum of 12 months (whether consecutive or not). The Dependant Care Benefit is payable up to a maximum of 48 months (whether consecutive or not). Applicable if the Life Assured has a Child who is below 22 years old (age last birthday) as at the Claim Date.

* Subject to Deferment Period. The Initial Benefit is a lump sum payment equivalent to 3 times of the Monthly Benefit. In the event the Life Assured fully recovers from the disability, the Initial Benefit may be paid again for subsequent episodes of inability to perform at least 1 ADL. However, it is not payable if such subsequent disabilities arise from or are related to the cause of disability(ies) for which there was a previous claim for Initial Benefit.

Disclaimer
The information presented is for general information only and does not have regard to the specific investment objectives, financial situation or particular needs of any particular person.

The above is for general information only. It is not a contract of insurance. The precise terms and conditions of this insurance plan are specified in the policy contract.

GREAT CareShield can be purchased by CareShield Life (CSHL) or ElderShield (ESH) policyholders. If purchased by ESH policyholders before the transfer of ESH to Government administration, GREAT CareShield will be considered as an ESH Supplement regulated under the CPF (Withdrawals for ElderShield Scheme) Regulations. If purchased by ESH policyholders after the transfer of ESH to Government administration or by CSHL policyholders, GREAT CareShield will be considered as a CSHL Supplement regulated under the CareShield Life and Long-Term Care Act.

This is only product information provided by us. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs.

If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).

Information correct as at 18 November 2021.