CareShield Life FAQs
What is insurance?
According to an article published on Investopedia.com, an insurance refers to “a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.” CareShield Life FAQs
Buying your first insurance has often been tied to the first official act of ‘adulting’. With so many business agencies, firms and their representatives reaching out to us promoting their specific company’s policies and its benefits, it is easy for an individual to feel confused and lost on the matter.
At the end of the day, taking on an insurance plan is meant to protect you, your loved ones as well as the things you truly care about. However, buying insurance does not only depend on what you wish to protect but how much you can afford to fork out in order to purchase a proper insurance plan.
With all that being said, are you on the lookout for an insurance plan that covers your health concerns? Keep reading to find out more!
Critical illnesses can affect anyone at any time. The severity of such illnesses are often swept aside and many prefer to air on the side of luck when it comes to these matters. Accidents can occur anytime and it’s important that you prepare a safety net for yourself. Saving some funds to cover for long-term care is, as such, crucial.
In order to ensure that every individual has access to basic financial support for long-term care needs, the government has introduced CareShield Life – a national long-term care insurance scheme – on 1 October 2020.
With this being a new concept for many, we’ve prepared a Q&A list to answer the most commonly asked questions. Let’s dive right into it!
1. What’s CareShield Life?
CareShield Life is a national long-term care insurance scheme that offers monthly payouts over a lifetime as long as the claimant remains severely disabled, which will require a prolonged duration of personal and medical care.
2. Who’s eligible for CareShield Life?
Singapore citizens or permanent residents born in 1980 or later as well as Singapore citizens or permanent residents born in 1979 or earlier are eligible for CareShield Life.
3. I’m disabled. Am I eligible for CareShield Life?
For those with pre-existing medical conditions and disabilities, you’ll still be able to enjoy the benefits of CareShield Life as long as you’re a Singapore citizen, or a permanent resident born in 1980 or later.
4. I’m an ElderShield policyholder. Am I eligible for CareShield Life?
If you’re under the existing ElderShield scheme and born between 1970 and 1979, you’ll be automatically enrolled from the end of 2021 as long as you’re not severely disabled. Keep in mind that if you’re under the ElderShield 300 scheme, you’ll need to top up your premiums if you choose to switch to CareShield Life.
If you’re under the existing ElderShield scheme and have not been automatically enrolled into CareShield Life at the end of 2021, you may apply to join the CareShield Life scheme at the end of 2021 as long as you’re not severely disabled.
5. What’s the difference between MediShield Life and CareShield Life?
CareShield Life is an upgraded version of ElderShield scheme that provides monthly cash payouts in case of severe disability. The payout is to financially support you for your long-term care needs such as employing a caregiver or the cost of daily-living aids.
MediShield Life, which is also a mandatory scheme, insures you for hospitalisation expenses and selected outpatient treatments.
Both MediShield Life and CareShield Life premiums for you and your family members are fully payable by MediSave. If you have insufficient savings in your MediSave Account, you can make a top-up via CPF e-Cashier (select “Contribute to My MediSave”).
6. How does CareShield Life work?
The good news is CareShield Life scheme covers you for life and the payout increases annually until age 67 or when a successful claim is made, whichever earlier.
Upon enrolment, you’ll be required to pay an annual premium using your MediSave account until the year you turn 67. The premiums for 30-year-olds start at S$206 (for men) and S$253 (for women) in 2020. The premium amount will increase over time to support payouts that will also increase over time.
From 2020 to 2025, premiums will increase by 2% annually, after which adjustments to the rate of increase will be recommended by an independent CareShield Life Council, based on claims experience, changes in life expectancy and disability trends. You can use the online CareShield Life premium calculator by MOH to find out the estimated premium amount payable depending on your circumstances.
CareShield Life claims will be paid out in the event of severe disability, which is determined by the inability to perform at least three of the six Activities of Daily Living (ADL). The amount of payout will increase annually, starting with S$600 per month in 2020, until age 67 or when a successful claim is made, whichever is earlier. From 2020 to 2025, payouts will increase at 2% per year. Thereafter, rate of payouts increases and corresponding premium adjustments will be recommended by an independent CareShield Life Council. If you become severely disabled after the age of 67, your payout amount will be pegged to the year you turn 67.
7. What’s considered a severe disability?
Severe disability is determined by the inability to perform three of the six Activities of Daily Living (ADL)—washing, dressing, feeding, toileting, walking or moving around and transferring.
You’ll need to arrange for a disability assessment to certify your severe disability status by a MOH-accredited severe disability assessor, which is free for the first time.
8. What if I’m unable to pay for my CareShield Life premiums due to financial difficulties?
For those who are unable to afford their premiums due to financial difficulties, the Government offers premium subsidies and support measures. Additional Premium Support may also be offered to those who cannot afford to pay even after subsidies and support measures.
9. What will happen when I relocate to another country?
Singapore citizens who are living abroad—either temporarily or permanently—will still be able to enjoy the benefits of CareShield Life as long as the premiums are paid.
10. Can I enhance my CareShield Life coverage and how?
Although CareShield Life provides you with basic financial support for long-term care, there’re a lot of one-off and recurring long-term care expenses you need to factor in. For example, a caregiver, daily-living activity aids, rehabilitation therapy, special diet and medication.
For greater assurance, there are a few appointed private insurers in Singapore that offer supplementary plans for CareShield Life.
Taking care of your health should be a primary concern and planning to keep some funds aside is always a good plan. With these numerous key benefits waiting for you, why not air on the side of caution?
At TN Advisory Group, our services and expertise can be used to assist interested parties in relation to the various fields of finance. Some of these sectors include investment, insurance, retirement, corporate pensions, group employee benefits, business continuation, as well as general insurance purposes.
If you wish to know more about CareShield Life or any other enquiries, please contact us through Whatsapp or Email to schedule an appointment. We will get back to you as soon as possible.