What’s the Difference Between Careshield Life & Eldershield?

What’s the Difference Between Careshield Life & Eldershield?

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What’s the Difference Between Careshield Life & Eldershield

Planning for the future is never fun, but it’s crucial.

Did you know that 1 in 2 Singaporeans who reach age 65 will experience severe disability in their lifetime?

That’s a pretty scary statistic, and it’s why having long-term care coverage like ElderShield or CareShield Life is so important.

In this post, you’ll learn:

  • What ElderShield and CareShield Life are all about
  • The key differences between them
  • Whether CareShield Life is enough for your long-term care needs
  • What options you have if it’s not enough

 

So, if you’re wondering whether ElderShield or CareShield Life is enough for you, or if you’re confused about the options, keep reading.

What is Eldershield and CareShield Life?

ElderShield and CareShield Life are long-term care insurance schemes that provide financial support when you cannot carry out daily activities independently due to severe disabilities.

In a nutshell, they help you cover care costs if you ever need it.

Think of them as safety nets, designed to ease the financial burden of needing long-term care.

Eldershield got upgraded to CareShield Life

Born in 1979 or earlier Born in 1980 or later
Coverage Covered under ElderShield 300 or ElderShield 400 Compulsory coverage under CareShield Life
Actions to be taken Choose to either:

  • Remain on ElderShield
  • Switch to CareShield Life
  • Opt out of both ElderShield and CareShield Life
None, you will be automatically enrolled from mid-2021

Differences between ElderShield and CareShield Life

Aspect ElderShield CareShield Life
Payout Amount $300 or $400 per month (fixed) $637 per month (in 2023), increasing by 2% annually
Payout Duration 5 to 6 years Lifelong, as long as the insured cannot perform 3 ADLs
Annual Increase in Payout None (fixed payouts) 2% annual increase until age 67
Premiums Lower premiums Higher premiums
Premium Duration Payable until age 65 Payable until age 67
Eligibility for Pre-existing Conditions Not eligible for pre-existing conditions Eligible for pre-existing conditions
Optional vs Mandatory Optional Mandatory for those born after 1980, optional for others

Is Eldershield and CareShield Life enough for me?

The honest answer – it depends.

While both schemes provide a financial cushion if you cannot perform Activities of Daily Living (ADLs), whether or not it’s sufficient comes down to your circumstances.

ElderShield offers fixed payouts for 5 to 6 years, which may fall short for prolonged care.

CareShield Life provides higher, lifelong payouts starting at $637 per month (in 2023) with annual increments.

However, these may still not cover the total cost of care, such as caregiver fees or nursing home expenses, which can range from $1,200 to $4,500 monthly.

To bridge this gap, you can consider supplements from private insurers for higher payouts or disability income insurance for broader coverage.

Frequently asked questions

Is it advisable to have both ElderShield and CareShield Life?

No, you cannot have both CareShield Life and ElderShield simultaneously.

Once you are enrolled in CareShield Life, it replaces ElderShield as your long-term disability insurance.

However, the transition depends on your birth year and whether you choose to upgrade.

Conclusion

So, we’ve covered quite a bit here.

We started by explaining the basics of ElderShield and CareShield Life, and how these schemes provide financial protection if you ever face severe disability.

We also touched on the key differences – like CareShield Life’s higher payouts, lifelong coverage, and increasing benefits, which make it a solid upgrade from ElderShield.

But the big question is whether these schemes alone are enough for you.

For some, they might be, but if you think there’s a gap between what they offer and your long-term care needs, supplements or disability income insurance could be worth exploring.

If you’re still unsure about whether ElderShield or CareShield Life is enough for you, or if you’re considering adding on supplements, feel free to get in touch with one of our trusted financial advisor partners.

They’ll help you figure out what works best for your situation – and the best part?

It’s completely free.

References

Picture of Firdaus Syazwani
Firdaus Syazwani
In 1999, Firdaus's mother bought an endowment plan from an insurance agent to gift him $20,000. However, after 20 years of paying premiums, Firdaus discovered that the policy was actually a whole life plan with a sum assured of $20,000, and they didn't receive any money back. This experience inspired Firdaus to create dollarbureau.com, so that others won't face the same problem of being misled or not understanding what they are purchasing – which he sees as a is a huge problem in the industry.

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Dollar Bureau and its affiliated parties is not meant to be construed as financial advice. Dollar Bureau shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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