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:
|
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.
