facebookCareshield life payout increase at 2% for the first 5 years. After which any further increase is base on the government. Is there any recommended amount to cover for supplement plan? - Seedly

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Anonymous

07 Dec 2020

Insurance

Careshield life payout increase at 2% for the first 5 years. After which any further increase is base on the government. Is there any recommended amount to cover for supplement plan?

Is there a recommended amount to cover for supplementary plan?

Discussion (2)

What are your thoughts?

Elijah Lee

Elijah Lee

07 Dec 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

There's really no recommended amount for the supplement plan for Careshield Life (CSL). This is entirely up to you.

However, many people prefer to keep it within the medisave usage limit of $600/pax per calendar year, and thus, will just get whatever additional coverage they can, that doesn't go over the medisave usage limit for CSL supplement plans.

I also have clients who have a fixed amount of coverage in mind and their supplement plans require them to pay a bit of cash. They're ok with it as the cash outlay is not substantial, typically.

Nigel Tan

Nigel Tan

07 Dec 2020

Level 7·Executive Senior Financial Planner at Great Eastern Life

The recommended amount is usually tied to the medisave limit allowable by CPF which is any amount below $600 a year. Of course, you can do more and top up cash for higher benefits.

However, there are other better disability income / long term care policies out there that pay on less strict terms that you can consider (if you plan to top up cash on CSL supplements)

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