Considering CareShield Life Supplements?

It is no secret that Singapore has an ageing population. According to SingStat, the Total Life Expectancy At Birth as of 2021 is currently at 83.5 (Source 1). This means that if you were born in 2021, you would most likely live till 83.5 years old. Compared to someone born in 1990, the 2021 child would live around 8 years longer. However, a long life does not always mean a healthy life in old age. Those aged 60 and above will spend 3 to 8 years of their lives with some form of disability (Source 2).

In 2002, ElderShield was introduced by the Government as a basic long-term care insurance scheme targeted at severe disability, especially during old age. It started out providing a monthly benefit of $300 for up to 5 years and was enhanced to $400 for up to 6 years. Since then, the scheme has now been further improved and renamed as CareShield Life.

What does CareShield Life cover?

If you are unable to perform 3 out of 6 Activities of Daily Living (ADL), you will receive $600 per month for as long as you remain disabled. The payouts try to account for inflation whereby depending on when the claim is made, the monthly payout benefit would differ. From 2020 to 2025, the payout will increase at 2% per year. Thereafter, payout increases and corresponding premium adjustments will be recommended by an independent CareShield Life Council (Source 3).

6 Activities of Daily Living (ADLs)
The 6 Activities of Daily Living are (Source 4):

Who does CareShield Life cover?

CareShield Life covers Singaporeans and Permanent Residents. If you are born in 1980 or later, you would be automatically covered under CareShield Life from 1 October 2020, or when you turn 30, whichever is later. If you are born between 1970 and 1979 and insured under ElderShield 400, you will be automatically enrolled into CareShield Life from 1 Dec 2021. If not, participation is optional.

So what are CareShield Life Supplements?

CareShield Supplements are plans provided by private insurers which aim to complement CareShield Life by offering higher payout amounts and other additional benefits. While the premiums for CareShield Life are fully paid using your MediSave, you can only use up to $600 from your MediSave to pay for CareShield Life Supplements. Any premium amount above this will have to be paid in cash.

Why you should consider CareShield Life Supplements

It is important to note that while CareShield Life already provides a monthly payout, this payout is unlikely to be able to fully cover the cost of disability. CareShield Life was never meant to fully cover the cost of being disabled as it is only a basic long-term care insurance. In fact, a survey done by Aviva (now known as Singlife) back in 2018 found that the average monthly cost of long-term care was about $2,324 (Source 5). That’s a monthly shortfall of around $1,700! If disability were to occur, would you be able to pay the additional monthly cost of $1,700? This amount would have to come from your savings as you would likely not be able to continue working.

So, why not consider getting yourself a CareShield Life supplement today? Want to find out more about the various Careshield Life supplements? Drop us an email at [email protected] to find out more.

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