How Does Careshield Life Complements Your Existing Protection Plans?
What is CareShield Life?
CareShield Life is a long-term care insurance which provides financial protection against long-term care costs of Singaporeans in the event of severe disability.
CareShield Life will provide you with better protection and assurance for basic long-term care needs with:
Lifetime cash payouts, for as long as the insured remain severely disabled;
Increasing payouts, starting at $600/month in 2020;
Government subsidies to make it affordable, with no one losing coverage if they cannot pay premiums;
Premiums can be fully paid by MediSave.
Why do we need CareShield Life?
1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime, and may need long-term care. Severe disability may arise due to a sudden disabling event (e.g. stroke and spinal cord injuries), the worsening of chronic conditions and diseases (e.g. diabetes), or the progression of illnesses as we age (e.g. dementia). It is important that we plan early for our future long-term care needs, but working out how much to save can be difficult since the cost of long-term care is uncertain.
Insurance schemes like CareShield Life help to pool our risks together and ensure protection against potentially catastrophic long-term care costs, providing peace of mind.
Who does CareShield Life cover?
Singaporeans born in 1980 or later:
If you are born after 1990 (aged below 30 in 2020), you will be automatically covered when you turn 30, regardless of pre-existing medical conditions and disability. You will receive a letter about 2 months before your 30th birthday, and premiums will be made available closer to your 30th birthday.
If you are born between 1980 to 1990 (aged 30 to 40 in 2020), you will be automatically covered on 1st Oct 2020 or when you turn 30, whichever is later, regardless of pre-existing medical conditions and disability. You will receive a letter between September to October 2020 with your policy details. In the meantime, you can check your personalised CareShield Life premiums here.
Singaporeans born in 1979 or earlier:
If you are born in 1979 or earlier (aged 41 and above in 2020), participation is optional.1 You can apply to join CareShield Life from end-2021 onwards if you are not severely disabled. There is no age limit. More information on how to apply will be provided closer to end-2021.
To make joining more convenient, if you are born between 1970 and 1979 (aged 41 to 50 in 2020), insured under ElderShield 400, and not severely disabled, you will be automatically enrolled into CareShield Life from end-2021. However, you can opt out by 31st Dec 2023 if you do not wish to remain on CareShield Life. More information on auto-enrolment will be provided closer to end-2021.
Why do I need careshield life if I have other insurance plans?
There are different private insurance plans on the market. Most cover total and permanent disability or are meant to insure against loss of income when an individual becomes disabled and is unable to work.
As such, private insurance plans typically cease coverage between ages 60 to 70 when most insureds retire. CareShield Life, however, provides lifetime coverage and ensures that an individual will receive coverage even if the individual becomes severely disabled in their later years.
In addition, unlike private insurance products which cease coverage if insureds are unable to pay the premiums, under CareShield Life, coverage will not cease if an individual is unable to pay premiums due to financial difficulties. The Government will provide premium subsidies and additional premium support.
How do I Pay for Careshield Life?
Premium payment can be fully paid via MediSave. If you have sufficient funds in your MediSave Account, your CareShield Life premiums will be automatically deducted from your MediSave Account.
If you have insufficient savings in your MediSave Account, you can make a top-up via cpf e-cashier (select “Contribute to My MediSave”).