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What is CareShield Life?
According to MOH Website: CareShield Life is the national long-term care insurance scheme to provide basic financial protection against severe disability. It was launched on 1 October 2020 to replace the ElderShield scheme. To ensure that policyholders can benefit from improvements to the claims assessment process, and upgrade more smoothly to CareShield Life, the Government will take over the administration of the ElderShield scheme from private insurers from 1 November 2021. (MOH Website)
It is a lifetime payout as long as the individual continues to meet the eligibility requirements.
Who is eligible for CareShield Life?
CareShield Life is mandatory for all Singapore Citizens or Permanent Residents born in 1980 or later. From 6 November 2021, the scheme is ready for eligible Singapore Citizens and Permanent Residents born in 1979 or earlier to join. Existing ElderShield 400 policyholders who were born in 1970 to 1979 will be automatically enrolled and do not need to take action to join. All others will have to sign up via the CareShield Life website to join. (MOH Website)
Why is CareShield Life Important?
CareShield Life payouts disability income when you are unable to perform 3 out of 6 Activities of Daily Living (ADLs). This can be due to an accident, sickness or injury which has to undergo an assessment by a MOH-accredited disability assessor.
Imagine yourself not being able to perform 3/6 ADLs, will you be able to work? Or do you still want to work? What are the changes your family needs to make to accommodate a sudden change of lifestyle? Do you need long-term care in a rehabilitation centre, a domestic worker with nursing experience, or your spouse/family to stop working to care for you? These are situations that nobody likes to go through to make a decision based on their financial situation.
However, if you are covered under CareShield Life, the default payout is $624 (as of 2022, with an escalating of 2% every year), in the event of 3/6 ADLs. Is this amount enough?
Why should you enhance your CareShield Life?
By enhancing your CareShield Life with an insurer, you are able to increase your disability income, by up to $5000/month. On top of that, you are able to use up to $600 from your Medisave to pay for CareShield Life. By enhancing your CareShield Life, you can also reduce from 3/6 ADLs to 2/6 ADLs.
Think about the cost involves when you are unable to perform 2/6 ADLs and how much will you need for:
- Medical Fee
- Home Renovation
- Family Financial Situation
- Daily Living Expenses
- Nursing / Caregiver
Lastly, the younger you are to get CareShield Life, the higher your disability income and the lower your premium!
References from:
Singlife MOH CareShield Life
