CareShield Life replaces ElderShield. Singaporeans 39 years old or younger (born from 1980 onwards) will need this as a mandatory long-term disability insurance coverage. Read on to see why this is good news for you.
Starting from mid-2020, Singaporeans aged between 30 to 40 years old will automatically pay premiums for a new government-run disability insurance scheme – CareShield Life. They will also be the first group to join the CareShield Life.
This means that in the next years, CareShield Life will soon override the current ElderShield, which is also another severe disability insurance introduced in 2002 by the Ministry of Health (MOH). Unlike CareShield Life, ElderShield is supported by private insurers such as Aviva, Great Eastern and NTUC Income.
CareShield Life to offer wider coverage for the disabled
CareShield Life aims to assist Singaporeans medical and long-term care needs.
Looking at the payout amount and period of payout, CareShield Life is significantly better than the ElderShield scheme, in terms of coverage. As of now, the ElderShield scheme only pays a monthly $400 for up to 6 years to policyholders who fall in the criteria for a claim.
The new CareShield Life, on the other hand, does not have a limit to the period of payout; and instead will pay a monthly $600 to the policyholders for as long as they require to support themselves. The more relaxed claim criteria will benefit more disabled people.
Financing our long-term care is a shared responsibility
With greater coverage criteria also comes a heftier premium size to pay. Annual payments have to be made till the age capped at 67 years old – the current re-employment age in Singapore.
Nonetheless, Singaporeans can withdraw up to $2,400 yearly from their Medisave to pay for premiums. Additionally, lower to middle-income households are eligible for subsidies of up to 30%.
Another loophole that many called for concern is the gender-based premium. Annual premiums start at $206 for men and $253 for women at 30 years old. Women will need to pay more than men since women tend to live longer and are also more susceptible to severe disabilities.
“I am currently under the ElderShield scheme. How now?”
Those who are currently under the ElderShield scheme can upgrade to the CareShield Life from 2021 onwards. Between 2020 and 2024, up to $250 subsidies will aim to help you make the transition.
How much premium do I need to pay?
Give the Premium Calculator a try to find out how much premiums you are required to pay. This will be tabulated based on your age, gender type, monthly per capita household income (PCHI) and your residential property type.
What’s your take on the long-term care bill? How about your thoughts on the gender skew for the amount of the premiums? Share with us your thoughts down below in the Comment section. Reach out to us at [email protected] too!