More about CareShield Life and It’s Coverage
Hitting 30 this year? Here’s what you need to know about CareShield Life, Singapore’s latest Long-Term Care insurance scheme for Singaporeans aged 30 and above.
From 1 October 2020, all Singaporeans aged 30 and above will be automatically enrolled into CareShield Life. Prior to CareShield Life was ElderShield, which a non-mandatory scheme for Singaporeans aged 40 and above.
What is CareShield Life?
CareShield Life is a long-term care insurance scheme that will provide you with a monthly payout for life should you not be able to take care of yourself due to a severe disability and require care services. This could be due to any disabling event such as an illness, chronic condition, or injury.
Monthly CareShield Life payouts start at $600/month in 2020 and increase by 2%* per year to account for inflation. However, they stop increasing by the time you reach 67 years old or when you submit a claim. Premiums correspondingly increase annually till age 67 and can be fully paid from MediSave.
Also, benefits can be enhanced with supplements provided by private insurers. The premiums for these supplements can be paid using MediSave; up to a cap of $600 per year. Currently, CareShield Life is only available for Singaporeans born in 1980 or later. It will only be available to older Singaporeans from 2021.
CareShield Life vs ElderShield – What’s the difference?
| CareShield Life | ElderShield | |
|---|---|---|
| Monthly Payout | $600 for 2020, increasing by 2%* p.a. until age 67 or when a claim is made, whichever comes first | ElderShield300: $300 ElderShield400: $400 |
| Joining Options | Universal – Compulsory for 30-year old; includes persons with pre-existing disabilities | Optional; excludes persons with pre-existing disabilities |
| Period of Cover | Lifetime | Lifetime |
| Joining Age | From 30 years old | From 40 years old |
| Premium Paying Period | Till 67 years old | Till 65 years old |
| Level Premium? | No, 2%* p.a. increase in tandem with payout increase | Yes, fixed based on entry age |
| Payout Period | Lifetime, as long as severely disabled | ElderShield300: 5 years ElderShield400: 6 years |
*From 2020 to 2025, the increase is 2% per year. Beyond that, premium and payout adjustments will be recommended by an independent CareShield Life Council, in accordance with an actuarially sound adjustment framework. The Council will take into account the scheme’s claims experience and changes in life expectancy and disability trends.
CareShield Life vs MediShield Life vs CPF LIFE – What’s the difference?
| CareShield Life | MediShield Life | CPF LIFE | |
|---|---|---|---|
| Launched in: | 2020 | 2015 | 2009 |
| Payouts meant for: | Caregiving needs | Medical bills | Income for retirement |
| Description | Provides universal life-long monthly payouts to cover your caregiving needs should you require them due to severe disability, as defined by inability to perform 3 Activities of Daily Living (ADLs)* | Provides universal life-long medical coverage for large hospital bills in Singapore. It helps cover your hospitalisation and certain outpatient treatment costs. The amount you can claim from MediShield Life depends on the ward of stay and is subject to the amount you need to co-pay first. | Provides life-long income during retirement to cover basic needs e.g. food, transport, bills, and some entertainment. |
*Activities of Daily Living (ADL) refer to transferring, mobility, toileting, dressing, washing, and feeding.
CareShield Life vs other types of disability insurance
With the addition of CareShield Life to a plethora of insurance plans out there, it can be difficult to differentiate among the types of coverage available, as well as what you need. You might also be concerned with having duplicate insurance coverage.
Here’s a comparison among CareShield Life and other types of disability insurance to help you make sense of what benefits each type of coverage entails. CareShield Life falls under Long-Term Care Insurance/Severe Disability.
| Type of Coverage | Period of Coverage | Type of Benefit | Premiums | Conditions for Claims |
|---|---|---|---|---|
| Long-Term Care Insurance/Severe Disability | For life | Monthly payout for life | $ | • Inability to perform 2-3 Activities of Daily Living (ADL) |
| Total Permanent Disability | Up to age 70 | Lump sum payout | $ | • Loss of sight in both eyes/loss of use of two limbs • Unable to perform any work to earn income • Inability to perform 2-3 ADLs |
| Accidental Permanent Disability | Up to age 75 | Lump sum payout | $ | • Loss of sight in both eyes/loss of use of two limbs • Loss of sight in both eyes/loss of use of two limbs • Unable to perform any work to earn income • Inability to perform 2-3 ADLs • Partial loss of use in different parts of the body • Must be due to accident |
| Occupational Disability Income | Up to age 65 | Monthly payout till age 65 | $/$$ (depending on age and occupation) | • Inability to perform duties of own work • Inability to perform any work suited to education/training/experience • Partial loss of income of more than 25% |
| Critical Illness | For life | Lump sum payout | $$$ | • Inability to perform 3 ADLs • Also pays in the event of any critical illnesses listed in the definitions |
Based on this comparison, long-term care plans like CareShield Life clearly fill an important gap in our insurance planning from both a benefit and cost-saving perspective. That’s why it’s one of the must-have insurance plans that we encourage all our pre-retiree clients to keep throughout their golden years.
Click here to check out our insurance solution sets for recommended CareShield Life Supplements.
