7 Reasons to Apply for a CareShield Life Supplementary Plan

This post was originally posted on Planner Bee.

Singaporeans are living longer than ever before. According to the Ministry of Health, one in two healthy Singaporeans aged 65 could possibly develop severe disability and would require long-term care.

To take care of an ageing population, the Singapore government has implemented policies such as CareShield Life, a national long-term care insurance scheme to safeguard Singaporeans against the consequences of severe disability.

Since November 2021, eligible Singaporeans and permanent residents born in 1979 or earlier and are not severely disabled can sign up for CareShield Life. For those born after 1979, this scheme is compulsory and you are signed up by default. How adequate is this scheme when it comes to dealing with the needs of Singaporeans? What are the supplementary options available?

Read on as we delve into why you should consider applying for a CareShield Life supplementary plan.

What is CareShield Life?

CareShield Life is a disability insurance scheme that came into effect on 1 October 2020, to provide basic financial support in the event that one becomes severely disabled, especially during old age, and needs personal and medical care for a prolonged period (i.e. long-term care).

If you need help in at least three of the following six Activities of Daily Living (ADLs), you will be deemed as severely disabled:

1. Eating without help
2. Bathing
3. Using the toilet
4. Getting dressed
5. Moving from the bed to a chair, or vice versa
6. Walking or moving on flat ground

With a supplementary plan, you can start receiving payout even if you require help in only one of the six ADLs. Compare the available supplementary plans here.

Why should I apply for a CareShield Life supplementary plan?

However, CareShield Life alone does not provide sufficient coverage. Think inflation and rising cost of living, and this also means that CareShield Life has its own limitations.

There are other reasons you should apply for a CareShield Life supplementary plan:

1. CareShield Life’s basic payout is insufficient

Since CareShield Life is meant to provide basic financial protection for long-term care needs, the sum we eventually need for our medical bills and other expenses could be way higher.

In the unfortunate event of a disability, you would probably require money for expenses including:

• Daily living expenses
• Medical aids
• Living in a nursing facility
• Getting a caregiver to provide care for you
• Other expenses

Under CareShield Life, the basic payout amount is only S$649 a month in 2024, and increases every year until the age of 67 or when a successful claim is made, whichever is earlier – which is insufficient even for those who live a simple lifestyle. To estimate your monthly required expenses, you can use EDB’s Cost of Living Calculator.

2. CareShield Life supplements reduce claim criteria and provide additional coverage

Under CareShield Life, your payouts only start when you require help with three ADLs. Having a supplementary plan, however, will reduce the claim criteria from three to just one of the six ADLs. This means you can receive financial assistance earlier, helping to manage the costs associated with a wider range of health conditions. This expanded coverage can be crucial in maintaining your quality of life and independence.

Private insurance companies Singlife, NTUC Income and Great Eastern provide CareShield Life supplementary plans to provide additional monthly disability cash payouts, in addition to CareShield life’s basic benefit of S$649 a month.

Applying for a supplementary plan means that your monthly payouts can go up to as high as S$5,000, with the bulk of the payout coming from add-ons to the scheme’s basic monthly payouts.

3. MediSave funds can be used to pay for your CareShield Life supplementary plans

Premiums for these supplements are payable with MediSave from your own account, or your family members’ as long as they are within the additional withdrawal limit. You can use up to S$600 per year per person from your CPF MediSave to pay for your CareShield Life supplementary plan. However, should there be an excess of premiums beyond S$600, the remaining sum will be payable in cash.

For Singapore Citizens from low- to middle-income households, there is also help available to pay for premiums. Find out more on the CPF website here.

4. Premium does not increase with age

Get protected as early as you can. Assuming you’re a 30-year-old female, with a monthly benefit of S$300 and premium term up to 95 years (before GST), the premium you pay can be as affordable as S$107.28 per year. That is less than S$10 a month.

5. Receive monthly payouts for the rest of your life

Monthly payouts continue until either the end of your life or until you recover from your disability, whichever comes first.

6. Peace of mind for you and your loved ones

Perhaps the most important reason to apply for a CareShield Life supplementary plan is the peace of mind it offers. Knowing that you have enhanced coverage and financial protection in place allows you to focus on your health and well-being without the added stress of financial uncertainty. It also reassures your loved ones that they will not be financially burdened in the event of your severe disability.

7. Premiums are waived upon inability to perform ADL

Depending on your choice of insurer, your annual premiums will be waived if you are unable to perform 1 or 2 ADLs. Singlife and Great Eastern both offer a waiver of premium upon inability to perform at least 1 out of 6 ADLs, while Income provides a premium of waiver upon inability to perform at least 2 out of 6 ADLs.

How do I check if I have a CareShield Life supplementary plan?

Before you apply for a CareShield Life supplementary plan, check whether you already have one. You can do so by following these steps:

1. Head to https://www.cpf.gov.sg/member
2. Login with your Singpass
3. Click on “My Messages”
4. Navigate to “CareShield Life/ElderShield” under the “Healthcare” section

If you already have a supplementary plan, the Healthcare section will reflect the insurer you are covered under (e.g. Singlife, NTUC Income, or Great Eastern). On the other hand, if you do not have any supplementary plans, the page will not reflect any information.

What are the available CareShield Life supplementary plans?

Private insurers including Singlife, NTUC Income, and Great Eastern offer CareShield Life supplementary plans.

Here’s a quick comparison table for you to make a well-informed decision:

Need a personalised quote? We’re here to help – simply submit your interest here.

Safeguard your financial future

Life is full of unexpected moments, and it never hurts to plan ahead of time. Getting a CareShield Life supplementary plan can give you peace of mind, knowing you are well insured for an unknown future.

If you are still on the fence about getting a supplementary plan, reach out to us at [email protected] and we can provide further advice.

Read more:__ CareShield Life: How To Convert From ElderShield, and Everything Else You Need To Know