Who should not get careshield life supplement?

Hi anon,

If you felt that you can self insure the risk, then you don't have to get the supplement.

This means in the off chance that you really become severely disabled at some time in your life, and your assets provide you with adequate financial resources to take care of your long term care costs, then you may consider not getting it.

However, the government has set up Careshield Life for a reason: To create a risk pool for future claims. This means that they have already forseen severe disability to be a concern and burden on families and individuals in future. Thus, the real question is, beyond the default payout from Careshield Life, are you able to self insure the rest of your long term care needs? If the answer remains as yes, then you don't need the supplement.

Insurance is ultimately just risk transfer. If you don't wish to transfer the risk, then you can only avoid it, reduce it or assume it.​​​

CareShield Life pays out in the event of severe disability. The payout starts from $600/month in 2020 and increases every year to keep up with inflation. The payout amount will be fixed once you start collecting payout or at the Payout amount upon payment of the last premium at age 67.

The main question you should ask is whether S$600/month is enough for you to live on in the unfortunate event you become disabled. If your answer is yes and you have no other dependants, then you might not require getting a CareShield Life supplement.

Another scenario is that you might already have other disability coverage. If your existing coverage is sufficient, there is no need to get a CareShield Life supplement.

In sum, the amount of protection required is dependent on the individual financial situation. It is good for you to get your financial portfolio reviewed by an advisor and make an informed decision. You can get in touch with us for a financial portfolio review.