I will turn 50 in Jan 22 and have eldershield with supplement. Currently using max MA withdrawal limit. Should I change to careshield supplement instead?

Hi anon,

​

There are two factors at play here.

​

Firstly, you need to ask if your health is still in good condition. If your health is not in good condition, then switching to the careshield supplement is probably going to do more harm than good as sub standard terms may be offered should you switch, which is definitely not preferred.

​

Secondly, depending on your age from when you signed up the eldershield (ESH) supplement, you may find that the premiums for the careshield (CSL) supplement (depending on which supplement you go for) now may result in a similar or smaller benefit that your original ESH supplement. This is also not a preferred scenario as you would likely get more benefit by staying with your original ESH supplement.

​

Do not rush into getting a careshield supplement now but instead take some time to understand how your current supplement works (note that I have no idea which is your current ESH supplement, and they work differently, see https://www.moh.gov.sg/docs/librariesprovider6/...), how much you will get at each stage of claim (i.e. during the first 6 years when ESH is paying out/after the first 6 years when ESH stops paying). Then, compare to a scenario where you get CSL supplement with CSL, and see how the payouts compare. This should allow you to see if there is merit to switching (provided that your health allows).

​

Statistically, claim numbers that I have seen support the fact that most people claiming are unable to do 3 or more ADLs, for exactly 2 or 1 ADL to occur is not impossible but rare.

​

Lastly, take note that ESH/CSL supplements have GST, so be aware that depending on your premiums at this point, you might end up forking out cash when GST goes up. Speak to an independent financial advisor for a more in depth analysis of your situation should you need to.

​

Good luck!

Hi,

​

The only downside in switching is the new premium rate for CareShield supplement will be based on your current age. So compared to your previous Eldershield supplement, the premiums might be more expensive at your current age and hence most likely the monthly benefits that you could get now will be lower than what your current Eldershield supplement provides.

​

However, of course the new Careshield supplement also comes with greater benefits. For example, Great Eastern's new Great Careshield Supreme comes with Caregiver Benefit (60% additional monthly benefit for up to 12 months) and Dependent Care Benefit (30% additional monthly benefit for up to 48 months if there is a child that is 22 Years and below at claim date).

​

Great Careshield Supreme is also the only Careshield supplement in the market that starts paying at 1ADL (50% of monthly benefit). It also pays a lump sum of 300% monthly benefit and future premium will be waived at 1ADL.

​

Right now, Great Eastern Life is having a 20% perpetual discount promotion for Great CareShield Supreme till the end of the year. I have calculated the monthly benefits that you could get based on the $600 withdrawal limit. Assuming you are a male, Age 49 this year, with the 20% perpetual discount, the monthly benefit you could get is $700 (premium: $584.22). If without the 20% discount, the $600 limit only allows you to get $500 of monthly benefit. Hence, I will advice you to take advantage of this promotion now if you are considering switching from your Eldershield supplement to Careshield supplement.

​

Feel free to contact me (email at bio) if you are interested to find out more.

​

Cheers.