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Anonymous

18 Nov 2021

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Insurance

Careshield Life for elderly

My parents are in their 70s and both are healthy with minor ailments. Any opinion whether i should sign up Careshield Life for them? Annual premium is 2,294.00

Discussion (1)

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Elijah Lee

18 Nov 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

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I would sugges that they get some long term care coverage for themselves. There is a very real chance that they may severely disabled in old age; without any form of payouts, the financial burden will fall on the rest of the family including yourself. I have already seen this happen with my grandfather 11 years ago. He did not have any form of long term care coverage and it was a strain financially to pay the nursing home bills.

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The good news is that Careshield life would cover your parents as long they are not already severely disabled, even if they have pre-existing conditions.

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Premiums for the basic Careshield Life plan can be paid fully by CPF MA so that is another plus as you don't have to come up with cash. Also, there will be subsidies for them.

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As they are both in their 70s, they will not be able to get careshield supplements, so the basic Careshield Life plan will be their only option.

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Starting next year, you do get tax relief for topping up their MA, so if their MA balances are low, you can consider topping up their MA to help them manage the Careshield Life premiums, and get some tax relief at the same time.

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Lastly, make sure you upgrade your own Careshield Life coverage as well! (If you are 30 years old)

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