CareShield Life: All You Need To Know About This National Insurance Scheme
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CareShield Life: All You Need To Know About This National Insurance Scheme

Cherie Tan
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Disclaimer: This is not a sponsored post, all opinions are our own. 

CareShield Life is basically ElderShield 2.0, newer but better, with a funky new name.

CareShield Life is almost similar to ElderShield but with better coverage, as part of the Government’s initiative to better address our ageing population.

On 1 October 2020, all Singapore residents between 30 to 40 years old will start paying premiums and be included in this national long-term care insurance scheme.

What is CareShield Life?

Similar to ElderShield, CareShield Life offers a payout upon severe disability to help finance the long-term care cost.

Severe disability is defined as needing assistance in at least three of these activities of daily living: eating, getting dressed, using the toilet, bathing, moving or walking around, and getting from the bed to a chair or vice versa.

  • Lifetime cash payouts
    – As long as you are severely disabled
  • Payouts increase over time
    – Starting from S$600/month in 2020
  • Government subsidies available
  • Premiums fully payable by Medisave

An Improvement From Eldershield

old people

  • The original ElderShield 300 provided S$300/month for 5 years
  • Upgraded to ElderShield 400, which provided S$400/month for 6 years
  • Then birth the new CareShield Life.

Are You Automatically Under CareShield Life?

Year of BirthCareShield Life Details
In 1979 or earlier- Your current ElderShield will continue to cover you (if you have one);

- You can choose to join from 2021 with incentives
In 1980 or laterAutomatically opt in if you are aged 30 to 40
Later than 1980Automatically opt in when you turn 30

The first batch for CareShield Life will begin on 1 October 2020, and would be for those aged 30 to 40 in 2020.

Premiums for CareShield Life

hand holding money bag

  • Premiums begin from age 30 to 67 (total of 38 premiums)
  • Premiums currently starts at $206 for male and $253 for female (age 30 for both)
  • Premiums will increase at a rate of 2% a year for the first five years
    – The rate at which it will increase for subsequent years will be decided by CareShield Life Council, which was set up earlier in April
  • Anyone with a severe disability at the joining age of 30 has to pay only the first premium in order to qualify for lifetime payouts
  • For anyone eligible for a payout, he/she will stop paying premiums even if they are younger than the last premium payment age of 67 years

Estimated Monthly Payout

YearMonthly Payouts
2020S$600
2021S$612
2022S$624
2023S$637
2024S$649
2025S$662

Source: Ministry Of Health

Premiums are based on 2% increment rate for the first 5 years.

Do note that once an individual starts collecting a payout, this amount will be fixed for the person and will not increase, even when the scheme’s payout increases in the future.

Similarly, the payout amount will be fixed at the amount the year an individual pays the last premium at age 67.

CareShield Life VS ElderShield?

For CareShield, payout upon disability is at least 50% higher.

The payout also lasts a lifetime.

 ElderShieldCareShield Life
Able to opt out?YesNo
Payable by MedisaveYesYes
Premiums start at40 years old30 years old
Premiums stop at65 years old67 years old
(or later according to retirement age)
Annual premiums*$175 (Men);
$218 (Women)
$200 (Men);
$250 (Women)
- Increase 2% every year
Premiums are paid for (years)2638
Government subsidyNoYes
Payout starts whenUnable to do at least 3 Activities of Daily Living (ADLs)
Payout amount$400/month$600/month
(starting 2020)
Duration of payoutSix yearsLifetime

Source: The Straits Times

*Using premiums for ElderShield from age 40 and CareShield from age 30

 ElderShieldCareShield Life
Total Premiums PaidS$4,600S$7,800*
Total Estimated PayoutsS$28,000^S$144,000*

Note: Figures are rounded to the nearest hundred.
^ ElderShield has a payout of 6 years.
*Premiums are before subsidies. Figures assume a 2% increase in premium per year.

How To Join CareShield Life?

old people with walking sticks

  • Singaporeans and Singapore PR born before 1980 can choose to join CareShield Life from 2021
  • Not compulsory for those already under ElderShield
  • Will be required to pay more premiums (by topping up) if they choose to opt for CareShield Life

Incentives To Join Careshield Life

There are incentives for those born before 1960 to join CareShield Life within 2 years of launch:

Year of BirthTotal Incentives
(10 years)
Incentive Per Year
1975-1979S$500S$50
1970-1974S$1,000S$100
1965-1969S$1,500S$150
1960-1964S$2,000S$200
Before 1960S$2,500S$250

Premium Subsidies Available for CareShield Life

Premium subsidies available for people with monthly per capita household income of:

Monthly Per Capita Household IncomeSubsidy Rate
S$1,100 or less30%
S$1,101 – S$1,80025%
S$1,801 – S$2,60020%
  • Premium subsidies benefits are the same as MediShield Life.
  • Those who do not have enough money in their Medisave may use money from their spouse’s Medisave, or that of an approved family member

Transitional Subsidies

  • Singapore Citizens will receive up to S$250 over the first 5 years to help pay for the premiums of CareShield.

I am on ElderShield, can I opt for CareShield Life?

  • Those under ElderShield will be able to upgrade to CareShield Life from 2021.
  • CareShield Life is not compulsory for those already on ElderShield
  • Those who have opted out from ElderShield can opt-in for CareShield Life if they are not currently disabled.

Examples for Opting for Careshield Life While on Eldershield:

Everything About CareShield Life, How Different From ElderShield?

Is the Government Trying To Profit From Their Citizens?

  • 1.3 million ElderShield policyholders in 2017.
  • S$3.3 billion in premiums collected.
  • Only about $133 million was paid out in claims.

Previously when ElderShield was covered by only 3 insurers in Singapore resulted in profits which had caused uncertainty for the reason behind the government implementing CareShield Life.

As extracted from their statement, the government assured us that:

  • The premiums collected and returns from investments will stay within the fund so that policyholders can benefit through higher payouts or premium rebates.
  • Today, premiums collected under ElderShield are more than the claims paid out, as most policyholders are relatively young.
  • Premiums collected do not become Government surpluses. Rather, they are meant for future claims – when policyholders become older and more of them make claims for severe disabilities. (see Figure 1)
  • All CareShield Life premiums collected will remain within the fund meant for policyholders. It will not be transferred to other Government schemes.
Source: gov.sg

CareShield Life: All You Need To Know About This National Insurance Scheme

With CareShield Life, we can now be assured that we will be financially supported in an unfortunate case of severe disability.

If you have any questions and would like to hear different perspectives from others on this, feel free to ask the SeedlyCommunity!

About Cherie Tan
Turning finance into boba-sized pieces. One iced milk boba tea, please!
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