Careshield Life
What is Careshield Life?
CareShield Life is a long-term care insurance which provides financial protection against long-term care costs of Singaporeans.
What are the benefits of careshield Life?
CareShield Life will provide you with better protection and assurance for basic long-term care needs with:
Lifetime cash payouts, for as long as the insured remain severely disabled;
Increasing payouts, starting at $600/month upon the scheme launch date in end-2020;
Government subsidies to make it affordable, with no one losing coverage if they cannot pay premiums;
Premiums can be fully paid by MediSave.
Are you eligible?
If you are a Singapore Citizen or Permanent Resident born in 1980 or later, you will automatically join the new scheme upon the scheme launch date in end-2020 or when you turn 30, even if you have any pre-existing conditions or disabilities.
If you are a Singapore Citizen or Permanent Resident born in 1979 or earlier, participation is optional. You can join CareShield Life from end-2021 onwards if you are not severely disabled. More details on your premiums, subsidies and support package will be provided when ready.
If you are born between 1970 and 1979, are currently insured under ElderShield 400, and are not severely disabled, you will be automatically enrolled into CareShield Life in end-2021. If you are auto-enrolled, you can opt out of CareShield Life by 31 Dec 2023 if you do not wish to join the scheme and your CareShield Life premiums will be refunded. More information on the auto-enrolment, premiums, subsidies and support package will be provided when ready.
In the meantime, if you already have existing ElderShield or ElderShield Supplement policies and do not wish to join CareShield Life, your existing ElderShield and ElderShield Supplement coverage will continue and will not be affected.
5 Summary of Careshield life:
1.Automatic enrolment for those aged between 30 and 40, from 2020 onwards Unlike its predecessor, CareShield Life kicks in from age 30 onwards. The optional ElderShield, which is offered by private insurers, only kicks in at age 40. Similar to ElderShield, CareShield Life premiums are payable via one's MediSave.
2.Existing ElderShield members can opt to join CareShield Life, from 2021 onwards Existing ElderShield cohorts who were born in 1979 or earlier, can choose to join CareShield Life. This includes those who are currently uninsured. There is no maximum entry age for CareShield Life. Those born between 1970 and 1979, and who are not severely disabled, will be automatically transitioned to CareShield Life in 2021, if they are currently insured under ElderShield 400.
3.Inclusive Underwriting
Unlike ElderShield, which was administered by private insurers, CareShield Life will be administered by the Singapore government. MOH has highlighted that its underwriting process for CareShield Life would be more inclusive. Every person who is not severely disabled can join CareShield Life in 2021.
4.Increasing pay-out amounts over time
Under CareShield Life, pay-outs upon severe disability will last for life, as long as the claimant remains severely disabled. At its launch in 2020, pay-outs will start at $600 per month, and will increase over time. The pay-outs increase will be concurrently supported by regular premium adjustments, the percentage increase of which is set to be at 2 per cent between 2020 and 2025. In contrast, the ElderShield scheme pays $400 a month for up to six years, but with lower premiums paid over a shorter period.
5.Premiums for CareShield Life
Singaporeans born in 1991 or later will be provided with their premium figures when they are enrolled in the CareShield Life scheme at age 30. It must be noted that existing cohorts who join CareShield Life will pay a base premium, which will take into account the premiums existing ElderShield 400 policyholders have already paid. Those under ElderShield 300, as well as those not insured under ElderShield, will pay an additional catch-up component, as they would not have paid as much premiums as those in the same cohort who are insured under ElderShield 400.
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