In the previous article (read here), we have mentioned about ElderShield which are provided for 40 years old and above to protect them from severe disability. Those who does not wish to be covered, can choose to opt out. From 2020, our government will introduce CareShield Life which will replace the ElderShield plan.
What if you have already signed up with ElderShield plan with supplement or opt out already? You can choose to join CareShield plan in 2021. You cannot join if you have already made a claim under ElderShield plan. You can choose to remain with your present ElderShield plan as well.
ElderShield Supplements are provided by Great Eastern, Aviva and NTUC Income. CareShield Life will be provided by Singapore government. It means Singapore government will collect premiums from us fellow Singaporeans who sign up for the CareShield Life plan and grow the fund (Singapore Bonds and Bills) to cater for payout in the future. The government will install the necessary infrastructure for Singaporeans to sign up, pay and make claims.
CareShield Life is compulsory like our army. Except you join when you hit 30 years old. When the policy has a word which ends with “Life”, it means you are covered for Life. As there is a gap with some of the Total Permanent Disability and partial Disability plan which stops coverage at 65 years old, the CareShield Life plan will cover when you most likely need it which is usually beyond 65 years old.
I don’t know whether this will change when it is rolled out but CareShield Life is an encompassing plan which will cover existing disabilities, including autism, just need to pay one premium to start enjoying the payout. However, above 40 years old in 2020 with pre-existing disability cannot join CareShield Life to claim payout.
What is “Severe Disability”?
The definition of Severe Disability refers to the inability to perform any 3 of the below 6 activities. Refer below for illustration:
1. Transferring – When we wake up, we need to get off from the bed
2. Mobility – Then we walk from the bed to toilet
3. Toileting – Then we need to go to the toilet to wash up
4. Bathing – Whether we can take shower by ourselves
5. Dressing – Dress up after shower
6. Eating – After shower, we can eat our breakfast
If you or your loved ones cannot perform any 3 out of the 6 activities, you can submit claims under CareShield Life similar to the ElderShield plan.
For CareShield Life, the present payout in 2020 will be $600 per month and likely to increase by 2% per year. The premium will be paid until 67 years and enjoy coverage for life. However this limited pay age may increase in the future. You need to understand our life expectancy will increase, so naturally the premium age limit will increase accordingly. Just like our retirement age. You get the idea?
ElderShield premium is fixed based on the age you enter whereas CareShield Life premium will increase by about 2% per year. The premium will be fully paid by Medisave which means you do not need to use your cash. (Note Medisave account compounds at 4% per annum)