How does Careshield Life compare with the older Eldershield?

Hi anon,

Fundamentally, the difference is that Careshield Life pays more than Eldershield, and it does so for life. Eldershield only pays $400/mth for up to six years in the event of a severe disability. Careshield payouts start at $600/mth and will last as long as needed.

While $600/mth may not be sufficient to fully offset the costs of long term care, it is nonetheless better than $400/mth. Furthermore, there is a chance that you might needed long term care for a period longer than 6 years. My grandfather used to stay in a nursing home and the bedridden person opposite him had been in the home for at least 8 to 9 years when he was admitted. You can imagine the costs involved, even if there are subsidies, the cost will still be significant.

You'll also pay premiums for a longer duration, since you will start from as early as age 30 and pay till age 67. For Eldershield, it starts at age 40 and stops at age 65. There will be premium subsidies to assist those who need it.

These will probably be the key things you will want to take note. A good read would be here and I'd suggest you to take a look at it (I won't reproduce the article here): https://dollarsandsense.sg/careshield-life-vs-e...

Although details are not out yet, there will likely be policies that supplement the payout of Careshield, much like how there are integrated shield plans that supplement the coverage of Medishield Life by increasing claim limits, etc. Once details are known, I'd suggest speaking to an independent financial advisor to find out more. Long term care is one of those things that you will have to prepare for early, because if anything strikes you in your retirement years, you will be very short on options. It is better to have a plan in place, ensuring that funds are available to get a decent level of care, rather than drain your retirement funds just because you didn't prepare for it.

Hi Anon, 3 big differences.

1) Eldershield 400 pays $400/mth for 72 months. Total $28800. Careshield Life pays $600/mth for Life. The payout for Careshield Life also escalates by 2% compounding per annum until age 67 (so does the premium)

2) Eldershield starts at age 40 and premiums ends at age 65 while Careshield Life starts at age 30 and premiums ends at age 67. Both cover for life.

3) Eldershield is administered by 3 insurers, namely NTUC Income, Aviva, and Great Eastern Life. While Careshield Life is administered by the govt.

Some additional similarities would be both are fully payable by Medisave, there will be supplementary plans for both products for higher coverage sold by private insurers with a portion of the premium also payable by Medisave. And they both pay out upon the inability to perform 3 out of 6 Activities of Daily Living. Which are:

Toileting

Dressing

Feeding

Washing

Mobility

Transferring

The supplementary plans also allow you to claim with the inability to perform only 2 out of the 6 ADLs.