What is ElderShield? A Beginner’s Guide

Planning for your future is essential, especially when preparing for the unexpected, like severe disability.

In this post, you’ll learn:

• What ElderShield is and what it covers
• The difference between ElderShield 300 and ElderShield 400
• How to make ElderShield claims
• What to do if ElderShield isn’t enough for you

Did you know that long-term care costs in Singapore can quickly add up?

If you’re relying solely on savings, it might not be enough.

Keep reading to find out how ElderShield can help ease that burden and whether it’s enough for you.

What is ElderShield?

ElderShield is a long-term care insurance scheme introduced by the Ministry of Health (MOH) in September 2002.

Its primary purpose is to provide financial support to individuals who face severe disabilities and require extended care, especially in their later years.

The idea behind ElderShield is simple – if you cannot perform basic daily activities due to severe disability, it helps alleviate some of the financial burden by providing a monthly cash payout.

If you qualify for ElderShield, you can receive payouts for up to 72 months.

These payments are designed to help cover personal and out-of-pocket expenses, such as caregiving costs or modifications to your living environment to accommodate your condition.

The scheme targeted Singapore citizens and permanent residents who had MediSave accounts and turned 40 years old on or before 2019.

What does ElderShield cover?

The coverage under ElderShield is divided into 2 main plans: ElderShield 300 and ElderShield 400.

ElderShield 300 provides a monthly payout of $300 for up to 5 years (or 60 months).

On the other hand, ElderShield 400 offers enhanced coverage, with a monthly payout of $400 for up to 6 years (or 72 months).

What’s the difference between ElderShield 300 and ElderShield 400?

How much are ElderShield premiums?

Source: https://www.cpf.gov.sg/member/healthcare-financing/eldershield/eldershield-premiums

Are there any subsidies for ElderShield?

At the time of writing, ElderShield does not offer any subsidies.

This means that if you’re enrolled in ElderShield, the premiums you pay are not further subsidised by the government.

The premiums are fixed when you join the scheme and remain unchanged as long as you’re enrolled, until your policy anniversary after turning 65.

While you can use your MediSave to pay these premiums, any remaining amount must be paid out of pocket.

However, it’s worth noting that the newer CareShield Life scheme, which replaced ElderShield for those who turned 40 after 2020, does offer government subsidies, especially for lower- and middle-income households.

If you’re eligible for CareShield Life, these subsidies could help reduce the cost of premiums.

How do I pay for my ElderShield premiums?

You can fully pay your ElderShield premiums using your MediSave savings.

This is the most common method, allowing you to use the funds in your MediSave account without dipping into your cash savings.

If your MediSave balance isn’t sufficient to cover the full premium, you can use the MediSave savings of close family members – your spouse, parents, children, siblings, or even grandchildren – to pay your ElderShield premiums.

This is particularly helpful for families who want to support each other in managing healthcare costs.

Can I opt out of ElderShield?

Yes, you can opt out of ElderShield if you wish to.

For more details and to begin the termination process, visit the official website here.

Should you opt out of ElderShield?

In most cases, you shouldn’t opt out of ElderShield.

ElderShield offers essential financial support for individuals needing long-term care due to severe disability.

The monthly payouts can help you cover caregiving expenses, home modifications, or hiring a domestic helper.

For those who may need more savings or liquid funds to handle these costs on their own, ElderShield provides a much-needed safety net.

Moreover, the peace of mind that comes from having this coverage is invaluable.

It ensures that both you and your family are financially prepared if a severe disability occurs, reducing the emotional and financial strain that long-term care can bring.

How do I know if I have ElderShield coverage?

You can do this directly through the CPF Board’s website by following these steps:

1. Visit the CPF website.
2. Log in using your Singpass.
3. Move your cursor over the “My CPF” section and select “Healthcare” from the “My Dashboards” menu.
4. From there, you can select “Long-term care insurance” from the anchor links or scroll down to find the “Long-term care insurance” section.

This will display your current ElderShield coverage details, helping you confirm if you’re enrolled and what plan you’re covered under.

How do I make ElderShield claims?

1. Arrange for a disability assessment

The first step in making a claim is to undergo a disability assessment.

You’ll need to visit an MOH-accredited severe disability assessor.

The assessor will evaluate whether you can perform at least 3 out of the 6 Activities of Daily Living (ADLs), which include tasks like washing, feeding, and mobility.

You can have the assessment done at a clinic or request a house call if needed.

A list of accredited assessors can be found on the AIC website.

2. Payment of assessment fees

The cost of the assessment is $100 for a clinic visit and $250 for a house call.

You will need to pay the assessor at the time of the assessment.

However, if you are deemed to be severely disabled and qualify for ElderShield payouts, these fees will be fully reimbursed with your first payout.

3. Log in to AIC’s e-Service portal (eFASS) to submit your details

After the assessment, submit your claim details through the AIC’s e-Service portal (eFASS).

You can log in using your Singpass.

The platform allows you to upload the necessary documents, such as the assessor’s report, and complete the claim submission process.

4. Claim settlement

Once your claim is approved, the payout will be made directly to your nominated bank account.

The payouts can be used at your discretion, whether for caregiving expenses, medical costs, or other personal needs.

I don’t think ElderShield is enough for me. How can I increase my coverage?

1. Purchase ElderShield supplements

You can purchase ElderShield supplements from private insurers to increase your coverage.

These supplements provide additional benefits, such as higher monthly payouts or longer payout durations beyond ElderShield’s.

They are designed to complement your existing ElderShield plan by providing extra financial support, which can be helpful if you anticipate higher care needs.

2. Upgrade to CareShield Life

If you’re looking for a more comprehensive solution, you can upgrade to CareShield Life, a scheme introduced in 2020 to replace ElderShield for those turning 40 and younger.

Unlike ElderShield, CareShield Life offers higher payouts that start at $600 per month and increase over time.

More importantly, CareShield Life provides lifetime payouts as long as you remain severely disabled, ensuring continued financial support without the time limits seen in ElderShield.

Even if you’re already enrolled in ElderShield, you can still switch to CareShield Life, which offers enhanced coverage, including government subsidies for lower- and middle-income households.

This can be a more secure option if you’re concerned about future long-term care costs.

3. Disability Income Insurance

Disability income insurance is a valuable addition to ElderShield or CareShield, offering income replacement if you cannot work due to an illness or injury.

Unlike ElderShield or CareShield, which require severe disability (e.g., inability to perform at least 3 out of 6 Activities of Daily Living), disability income insurance focuses on your inability to work, even if you can still manage daily tasks.

The monthly payouts, typically up to 80% of your pre-disability income, can be used for mortgage payments, daily living costs, or family needs.

These payouts continue until you recover, return to work, or reach a specified age, often 65.

This ensures you can maintain your financial commitments and lifestyle, even without an active income stream.

By adding disability income insurance to your plan, you secure a more comprehensive safety net that protects both your income and long-term financial well-being.

Frequently asked questions

Is ElderShield compulsory?

ElderShield is not compulsory.

When the scheme was introduced, Singapore Citizens and Permanent Residents with MediSave accounts were automatically enrolled at age 40, but participation was optional.

You had the choice to opt-out if you didn’t wish to be covered under ElderShield.

However, since 2020, new enrolments into ElderShield have stopped, with CareShield Life now taking its place for those turning 40.

If you were previously enrolled in ElderShield, your coverage remains active unless you opted out.

Can the ElderShield supplement be purchased from a different insurer than the existing basic ElderShield insurer?

Yes, you can purchase an ElderShield supplement from a different insurer than your existing basic ElderShield insurer.

ElderShield supplements are offered by various private insurers, and you can choose the insurer that best fits your needs, regardless of who provides your basic ElderShield coverage.

How much can I use from my Medisave account to pay for ElderShield supplement premiums?

You can use up to $600 annually from your MediSave account to pay ElderShield supplement premiums.

This limit applies per insured person, so if you are paying for your supplements or a family member, you can use up to $600 from MediSave for each person’s coverage.

If the premium exceeds this amount, you will need to top up the difference using cash.

If I am residing overseas, can I make a claim under ElderShield?

Yes, you can still make a claim under ElderShield if you are residing overseas.

ElderShield provides worldwide coverage, meaning that as long as you meet the eligibility criteria for severe disability (i.e., being unable to perform at least 3 out of 6 Activities of Daily Living), you are entitled to receive the payouts regardless of where you live.

The claims process remains the same, and you will need to undergo an assessment by an MOH-accredited assessor, even if you are overseas.

What happens if you cancel or opt out of ElderShield?

If you cancel or opt out of ElderShield, you will no longer be entitled to the benefits and payouts provided by the scheme in the event of severe disability.

This means you forfeit the monthly cash payouts that could help cover long-term care expenses.

Additionally, any premiums you’ve already paid will not be refunded.

Opting out might leave you financially vulnerable if you face a severe disability in the future, so it’s essential to consider your other long-term care insurance options before making this decision.

Can I downgrade from ElderShield 400 to ElderShield 300 now?

No, you cannot downgrade from ElderShield 400 to ElderShield 300.

Once enrolled in a particular ElderShield plan, either 300 or 400, you cannot switch between them.

ElderShield 400 was introduced to offer enhanced benefits over the original ElderShield 300, but if you’re already enrolled in ElderShield 400, you must remain in that plan.

If you feel ElderShield 400 doesn’t meet your needs, you might want to explore ElderShield supplements or upgrade to CareShield Life for additional coverage.

Conclusion

We’ve covered the basics of ElderShield, the differences between ElderShield 300 and 400, and how to check if you’re covered.

We’ve also walked through the claims process and explored how you can increase your coverage if ElderShield alone isn’t enough, either by purchasing supplements or upgrading to CareShield Life.

But we understand that long-term care insurance can be confusing, and figuring out the right coverage for your needs isn’t always straightforward.

If you’re unsure about your options or need advice on boosting your protection, you don’t have to go through it alone.

Feel free to reach out, and we’ll connect you with one of our trusted financial advisor partners for a free consultation.

They can help you navigate your choices and ensure you’re fully prepared for the future.

References

• https://www.aic.sg/financial-assistance/eldershield/
• https://www.cpf.gov.sg/member/healthcare-financing/eldershield
• https://www.careshieldlife.gov.sg/faqs/eldershield.html
• https://www.careshieldlife.gov.sg/faqs/eldershield.html
• https://ask.gov.sg/moh?topic=ElderShield&subtopic=ElderShield%20Claims