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Everything About CareShield Life, How Different From ElderShield?

01 Aug 2018 
SOURCE: Seedly

Disclaimer: This is not a sponsored post, all opinions are our own.

CareShield Life is basically ElderShield 2.0, newer but better, with a funky new name.

CareShield Life is almost similar to ElderShield but with better coverage, as part of the Government’s initiative to better address our aging population.

What is CareShield Life?
Similar to ElderShield, CareShield Life offers a payout upon severe disability to help finance the long-term care cost.

  • Lifetime cash payouts
  • – As long as you are severely disabled
  • Payouts increase over time
  • – Starting from S$600/month in 2020
  • Government subsidies available
  • Premiums fully payable by Medisave

 
An improvement from ElderShield
  • The original ElderShield 300 provided S$300/month for 5 years – wasn’t enough.
  • Upgraded it to ElderShield 400, which provided S$400/month for 6 years – still wasn’t enough.
  • Then birth the new CareShield.

 
For who?
  • First Batch: Those aged 30 to 40 in 2020
  • Those born in 1980 or later and between age 30 and 40 in 2020: You will automatically be opt-in in 2020 if you are aged 30 to 40.
  • Those born later than 1980: You will automatically be opt-ed in when you turn 30.
  • Those born in 1979 or earlier: Your current ElderShield will continue to cover you (if you have one) and you can choose to join from 2021, but premium details will be announced at a later date.
Premium
  • Premiums begin from age 30 to 67 (or current re-employment age whichever is higher)
  • Premiums will increase at a rate of 2% a year for the first five years.
  • – The rate at which it will increase for subsequent years will be decided by an appointed council.

 
Subsidies
Monthly Per Capita Household IncomeSubsidy Rate

30%
S$1,101 – S$1,800
25%
S$1,801 – S$2,60020%

 
Transitional Subsidies
  • Singapore Citizens will receive up to S$250 over the first 5 years to help pay for the premiums of CareShield.

 
Estimated Monthly Payout
YearMonthly Payouts
2020S$600
2021S$612
2022S$624
2023S$637
2024S$649
2025S$662
​Source: Ministry Of Health

*Premiums are based on 2% increment rate for the first 5 years

CareShield VS ElderShield?
  • Payout upon disability is at least 50% higher
  • Payout lasts a lifetime

ElderShield
CareShield
(NEW!)
Able to opt out?YesNo
Payable by MedisaveYesYes
Premiums start at40 years old30 years old
Premiums stop at65 years old
67 years old
(or later according to retirement age)
Annual premiums*
$175 (Men);
$218 (Women)
$200 (Men);
$250 (Women)
- Increase 2% every year
Premiums are paid for (years)2638
Government subsidyNoYes
Payout starts whenUnable to do at least 3 Activities of Daily Living (ADLs)
Payout amount$400/month$600/month (starting 2020)
Duration of payoutSix yearsLifetime
Source: The Straits Times

*Using premiums for ElderShield from age 40 and CareShield from age 30


ElderShieldCareShield
Total Premiums PaidS$4,600S$7,800*
Total Estimated PayoutsS$28,000^S$144,000*
Note: Figures are rounded to the nearest hundred.

^ ElderShield has a payout of 6 years.

*Premiums are before subsidies. Figures assume 2% increase in premium per year.

  • There were 1.3 million ElderShield policyholders at the end of last year and they have contributed $3.3 billion in premiums. About $133 million has been paid out in claims.
I am on ElderShield, what now?
  • Those under ElderShield will be able to upgrade to CareShield Life from 2021.
  • Not compulsory for those already on ElderShield
  • Required to pay more in premiums.
  • Those who have opted out from ElderShield can opt-in for CareShield if they are not currently disabled.
  • More details in the second half of 2018.

What does the Community think?
  • Gabriel Tham – One big problem govt will face is increasing healthcare costs. The more healthcare costs increase, the more premium they have to take from Medisave
  • Ashlyn Ho – Is everyone compulsory to pay this Careshield life? If yes, I’m concerned for those who is unemployed. Is Medisave sufficient to pay for Medishield life and now Careshield? We also need Medisave to be sufficient in case we really hospitalize
  • Kino Ng – Sounds good, at least it helps those people who touch wood reached a very old age and unable to do the 3 out of 6 things and still managed to get the payout.

This article was first published on Seedly​.

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