Careshield Life To Replace Eldershield?


In the Mario game, we have 3 lives to play. In our journeywithmoney, we also have 3 Lives for financial planning. The CPF Life, Medishield Life and now the Careshield Life.

Financial Planning Singapore

Financial Planning Singapore

CPF Life is for retirement. Medishield Life is for medical expenses. Careshield Life is for old age disability. Today, we will focus on Careshield Life.

 

What is Careshield Life?

Basically Careshield life is the enhanced Eldershield. In the MOH website, it states that “The new CareShield Life will feature higher payouts … to provide better protection against the uncertainty of long-term care costs.” It means in an event of a severe disability in old age, Careshield life will pay lifetime cashout to the family.

 

What are the features of Careshield Life?

  1. It offers lifetime payout in an event of severe disability starting from $600/month
  2. Payout will increase over time
  3. Premiums can be FULLY paid using medisave

When will Careshield Life be implemented?

Careshield Life will start in 2020.

  • If you are born in 1980 or later: If you are aged 30 to 40 in 2020, you will automatically join the new scheme in 2020. If you are in a younger cohort, you will join the new scheme when you turn 30. You will be covered if you have pre-existing conditions or disabilities.
  • If you are born in 1979 or earlier: Your current ElderShield plans will continue to protect you. You can choose to join the new scheme if you are not disabled. Meanwhile, MOH will work out the premiums, subsidies, and support package for you.

Information from the MOH website

 

What are the premiums like?

Premiums information have not been officially released. However, it is likely that the premiums will be higher than Eldershield Life given that the benefits are better.

 

Is it compulsory?

Yes. This is a compulsory Life that will be given to you. There can be no opt-out. The Government will be taking responsibility of this insurance policy for all Singaporeans/PRs.

 

More information can be found in the FAQs of the MOH website. Or refer to the video below

 

A publication of Value Investing blog Journeywithmoney. Please also follow us on our Facebook Page.

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