Most of us – at least those 30 and above – would be familiar with CareShield Life, Singapore’s national disability income insurance scheme that came into force on 1 October 2020.
Essentially replacing the old ElderShield scheme, CareShield Life provides lifelong monthly payouts for claimants who cannot perform 3 of 6 Activities of Daily Living (ADLs).
Source: MOH
When CareShield Life started in 2020, the monthly payout amount was $600 per month, and had been set to rise by 2% each year so long as no claims are made. The following year, in 2021, the monthly claim payout increased 2% to $612. In 2025, the claim amount has risen to $662 per month – indeed representing an increase of 2% each year since 2020.
Like its hospitalisation insurance cousin, MediShield Life, there are supplements to CareShield Life that can be bought from private insurers to provide enhanced benefits.
Here’s what you need to know about buying CareShield Life supplement plan and what are the additional benefits you can receive.
Read Also: Complete Guide To Understanding CareShield Life
What Are CareShield Supplements?
CareShield Life Supplement plans are policies offered by participating private insurers that provide complementary benefits to the basic CareShield Life payouts. These can include 1) higher monthly payouts 2), lower bar for making claims (such as an inability to perform 1 or 2 ADLs, instead of 3 stipulated by CareShield Life) and 3) additional monthly and/or lump-sum financial support for policyholders if they are considered as severely disabled.
For example, Great Eastern offers it Great CareShield supplement plan that commences disability payouts starting from inability to perform just 1 Activity of Daily Living (ADL). Under the Great CareShield supplementary plan, those who go on to be unable to perform 2 ADLs will also receive an additional 60% of the Monthly Benefit in monthly payouts for caregiving support for a maximum of 12 months, and an additional 30% of the Monthly Benefit in monthly payouts to provide for your child if they are below 22 years-old for a maximum of 48 months.
To purchase a CareShield Life Supplement plan, you must first be a CareShield Life policyholder. Currently, there are three insurers who offer CareShield Life Supplement plans, namely, Great Eastern (GREAT CareShield), Singlife (Singlife CareShield Standard and Plus), and Income (Care Secure).
Additional premiums for a CareShield Life Supplement plan can be paid either in cash, or using funds from your MediSave account or that of your family members (spouse, parents, children, siblings, or grandchildren). Every calendar year, you can only use a maximum of $600 from MediSave per person insured and the balance premiums would then need to be paid for in cash.
Read Also: How Much CareShield Life Premiums Will You Be Paying? (And Subsidies You’ll Receive)
Overview Of CareShield Life Supplement Plans Available In The Market
As mentioned earlier, there are currently three private insurers that offer CareShield Life Supplement plans, which also were the insurers that had offered ElderShield and ElderShield Supplement plans.
Here’s a brief overview of the plans offered by Great Eastern, Income and Singlife. You can speak to an authorised representative of the respective insurers for more information.
Read Also: CareShield Life Vs ElderShield: Understanding The Differences Between These Two Policies
Great Eastern (GREAT CareShield)
Great Eastern’s GREAT CareShield: Your monthly can start when you are unable to perform just 1 of the 6 ADLs (subject to a deferment period). You can also receive a lump sum Initial Benefit of up to 3 times your monthly benefit, to support your daily expenses and long-term care. Your future premiums will also be waived.
Upon your inability to perform 2 of 6 ADLs, you will receive an additional 60% of the Monthly Benefit in monthly payouts for caregiving support for up to 12 months, and an additional 30% of the Monthly Benefit in monthly payouts to provide for you child, if they are below 22-years-old, for up to 48 months.
According to Great Eastern, a 30-year-old male who buys GREAT CareShield with a $1,500 monthly benefit and who chooses a premium payment term of up to 95 years old will pay an annual premium of $584, which can come entirely from their MediSave.
Visit the Great Eastern website for more information.
Singlife (Singlife CareShield Standard and Singlife CareShield Plus)
[Formerly Aviva (MyLongTermCare, MyLongTermCare Plus)]
With Singlife CareShield Standard and Singlife CareShield Plus, you can choose to receive between $200 to $5,000 (in $100 increments) per month on top of CareShield Life payouts, with the choice of fixed or increasing payouts (at 2% or 3% per annum) until the end of the premium term, or when a claim is made, whichever is earlier. Do note that your premiums will also increase by 2% or 3% each year if you choose for increasing payouts.
For Singlife CareShield Plus, the claim criteria is your inability to perform at least 2 of 6 ADLs. The plan starts providing benefits from the point you cannot perform 1 of the 6 ADLs though, with premium waiver and a $1,000 Add-on Benefit for up to 12 months.
Upon inability to perform 2 ADLs, Singlife CareShield Plus provides for a lump sum payout of 3 times your first monthly benefit, as well as payouts for things like rehabilitation, caregivers (up to 12 months), dependant care (for up to 36 months), and death benefits (up to 3 times your last monthly benefit).
According to Singlife, a 35-year-old male who buys Singlife CareShield Plus with a fixed $1,000 monthly benefit and who chooses to pay till the policy anniversary after his 98th birthday will pay a fixed premium each month.
Visit the Singlife website for more information.
Income (Care Secure)
[Formerly NTUC Income]
For Income Care Secure, the plan defines severe disability as the inability to perform at least 2 of 6 ADLs, and provides additional monthly payouts of up to $5,000.
Those with dependants can also receive a dependant benefit, worth 25% of your disability benefit, for up to 36 months. There is also an initial lump sum payout of up to 3 times the monthly disability benefit as well as a death benefit.
Visit the Income website for more information.
Checking If You Are Covered Under An ElderShield/CareShield Life Supplement Plan
For ElderShield policyholders who previously bought an ElderShield Supplement plan, your ElderShield Supplement plan will continue to be valid and in-force, so long as you continue to pay your premiums – even if you opt for CareShield Life.
You can claim the respective benefits from your CareShield Life policy, as well as your ElderShield Supplement plan if you meet the respective claims criteria. The Ministry of Health has stated that the administration of ElderShield Supplement plans will remain with the private insurers, even after the government takes over the administration of ElderShield in end-2021.
You can check whether you have an active Supplement plan, and which insurer are you covered under by logging into the CPF website using your Singpass and clicking on MyMessages -> Healthcare -> ElderShield. You will then need to contact your insurer to find out the exact details of your exact policy and benefits.
Read Also: Why It Makes Financial Sense For Your Elderly Parents To Convert From ElderShield To CareShield Life
The post Complete Guide To Buying A CareShield Life Supplement Plan appeared first on DollarsAndSense.sg.
