What is CareShield Life? All you need to know

careshield life

If you’re a Singaporean, then you’ve probably heard about CareShield Life upgrades – the new national health insurance scheme that’s been all over the news lately. But what is it, and what does it mean for you? In this post, we’ll break down everything you need to know about CareShield Life, including who’s eligible for coverage, how much it costs, and what benefits it offers. So if you’re curious about this new program, read on!

About CareShield life 

CareShield Life is aLong-Term Care (LTC) insurance scheme that providesElderShield-like payouts to severely disabled policyholders who are unable to perform at least 3 Activities of Daily Living (ADLs). ADLs refer to activities like eating, bathing, going to the toilet and dressing oneself. 

The scheme will replace ElderShield on a voluntary basis for those aged 40 and above in 2020 and will become mandatory for Singaporeans born in 1980 or later. It replaces the existing ElderShield scheme which only pays out $400 per month for a 6-year period. 

Who is severely disabled?

Severe disabilities are defined as conditions that result in substantial and long-term loss of autonomy, or the inability to perform three or more Activities of Daily Living (ADLs).

The list of qualifying conditions can be found on the Ministry of Health website. To qualify for CareShield Life, you must be a citizen or permanent resident of Singapore and must be between 21 and 60 years old. You must also be insured under the Medisave account scheme, and have at least $200 in your Medisave account.

Careshield Life: For what reason do you really get it?

Half of the Singaporeans who matured 65 or more could confront disability in the course of their life and may require long haul care because of that. While we must all have to prepare on account of crisis and vulnerability, there is no brilliant recipe that can precisely anticipate the expenses of long care assuming you will at any point require it.

To this end, cover protection plans like CareShield Life give an inner harmony if there should be an occurrence of handicap, as it merges every individual’s gamble into one huge single pool.

CareShield Life Coverage

Who does it cover?

Assuming that you are born in 1980 or later, you will be automatically enlisted into CareShield Life. This is required and no further activities will be required on your end. In the event that you are conceived 1979 and before, you might select to join CareShield Life on the off chance that you are not seriously disabled.

For those brought into the world in the middle of 1970-1979, safeguarded under ElderShield 400 and not seriously disabled, you will naturally be exchanged over to CareShield Life from end-2021.

Benefits of CareShield life

There are many benefits to CareShield Life in Singapore! For starters, it helps to provide financial protection for Singaporeans in the event of serious disability. This can give you peace of mind, knowing that you and your loved ones will be taken care of financially if something happens to you.

CareShield Life also provides a regular pay-out to help with your daily living expenses, which can be a big help if you are unable to work due to a disability. And because the pay-outs are guaranteed for life, you don’t have to worry about them running out.

How much are your CareShield Life expenses?

CareShield Life expenses are pre-subsidized with premiums paid during your functioning years.

Accordingly, charges are paid from the age you join until age 67, however you stay covered forever. Premiums are postponed once you make a fruitful case. The people who join CareShield Life at age 59 or more seasoned will pay for 10 years. This assists with bringing down their yearly payable so it is more reasonable and sensible.

CareShield Life premiums are determined by your age, sex and occupation at the point of subscription. The younger you are, the lower your premiums will be. If you are healthy when you subscribe, your premiums will also be small. However, if you develop any health problems, later on, your premiums will go up correspondingly.

From 2020 to 2025, expenses and payouts will both increment by 2% each year. Past that, premium and payout changes will be suggested by an autonomous CareShield Life Council. The Council will consider the plan’s case insight and changes in future and handicap patterns while making their suggestions.

Different CareShield Life Upgrades

There are a few different CareShield life upgrades offered by private insurers. The first is an upgrade to a higher monthly pay-out. The second is an upgrade to a longer pay-out period. And the third is an upgrade to include cover for chronic conditions.

Each of these upgrades comes with its own set of pros and cons, so it’s important to carefully consider which one is right for you. For example, the higher monthly pay-out might be more beneficial if you think you’ll need more coverage in retirement. On the other hand, the longer pay-out period might be better if you don’t think you’ll live long enough to make use of the higher monthly pay-out.