How will CareShield Life affect my existing coverage?

You will still need your TPD rider, since CareShield Life only pays $600 a month upon disability, which is hardly enough. In face, you should be thinking of increase this disability payout to a more useful amount, then potentially removing your TPD rider.

Hi anon,

Careshield life's intended scope of coverage is very different from that of typical term with CI/TPD rider.

Your term plan should be covering you for death/TPD and CI. Amongst the definitions for TPD include

• Not being able to work for an income; or

• Not being able to do 3/6 or more ADL on your own (thus necessitating some assistance from another person, e.g. in a nursing home or a maid). This definition typically covers you up to age 70 for most, if not all insurers

So while there is some overlap in TPD coverage, you also need to take note that your term plan will eventually end.

Let's say that your term plan ends at age 65. Should something happen in your retirement years, affecting your ability to do the activities of daily living, then you would have no payout from your term plan.

However, Careshield Life is a policy that will cover you for life. Thus, this payout will be given to you so that you/your family will have the financial resources to cope with the costs of long term care.

In this aspect there is some level of overlap between TPD definitions and Long Term Care cover, but Careshield Life covers the gap in your retirement years as well. And in our retirement years, we are indeed at higher risk and this is also probably the period of time we need the coverage even more.

I'd expect that insurers will also eventually have Medisave - approved plans to improve upon the coverage that Careshield Life provides. While $600/mth for life is decent for a start, nursing home costs, etc will really eat into your finances in your retirement, and having a higher payout will allow you to have more options available in terms of the care provided.