Everything About CareShield Life In 5 Minutes. How Different From ElderShield?
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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 aging population.
What is CareShield Life?
Similar to ElderShield, the Ministry of Health (MOH) has introduced CareShield Life which offers a payout upon severe disability to help finance the long-term care cost.
- 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
- The original ElderShield 300 provided S$300/month for 5 years – wasn’t enough.
- Upgraded it to ElderShield 400, which provided S$400/month for 6 years – still wasn’t enough.
- Then birth the new CareShield.
Compulsory for everyone starting from the first batch.
- First Batch: Those aged 30 to 40 in 2020
- Those born in 1980 or later and between age 30 and 40 in 2020: You will automatically be opt-in in 2020 if you are aged 30 to 40.
- Those born later than 1980: You will automatically be opted in when you turn 30.
- Those born in 1979 or earlier: Your current ElderShield will continue to cover you (if you have one) and you can choose to join from 2021.
Incentives to join CareShield Life (As at 4 July 2018)
For those born in 1979 or earlier, here MOH has introduced incentives to join CareShield Life within the next 2 years.
- These incentives are spread over 10 years.
|Ages||Birth Year||Incentives||Incentives Per Year|
|Age 59 and above||Before 1960||$2,500||$250|
Source: Ministry of Health
- Premiums begin from age 30 to 67 (or current re-employment age whichever is higher)
- 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 an appointed council.
Subsidies (as at 4 July 2018)
|Monthly Per Capita Household Income||Subsidy Rate|
|S$1,100 or less||30%|
|S$1,101 – S$1,800||25%|
|S$1,801 – S$2,600||20%|
Note: Only applies to base premium and not the catch-up premium
- Subsidies only applicable to Singapore citizens who live in residences with an annual value of $13,000 or less.
- Singapore Citizens will receive up to S$250 over the first 5 years to help pay for the premiums of CareShield.
Estimated Monthly Payout
Source: Ministry Of Health
*Premiums are based on 2% increment rate for the first 5 years
CareShield VS ElderShield?
- Payout upon disability is at least 50% higher
- Payout lasts a lifetime
|Able to opt out?||Yes||No|
|Payable by Medisave||Yes||Yes|
|Premiums start at||40 years old||30 years old|
|Premiums stop at||65 years old||67 years old
(or later according to retirement age)
|Annual premiums*||$175 (Men);|
- Increase 2% every year
|Premiums are paid for (years)||26||38|
|Payout starts when||Unable to do at least 3 Activities of Daily Living (ADLs)|
|Payout amount||$400/month||$600/month (starting 2020)|
|Duration of payout||Six years||Lifetime|
Source: The Straits Times
*Using premiums for ElderShield from age 40 and CareShield from age 30
|Total Premiums Paid||S$4,600||S$7,800*|
|Total Estimated Payouts||S$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 2% increase in premium per year.
- There were 1.3 million ElderShield policyholders at the end of last year and they have contributed $3.3 billion in premiums. About $133 million has been paid out in claims.
I am on ElderShield, what now?
- Those under ElderShield will be able to upgrade to CareShield Life from 2021.
- Not compulsory for those already on ElderShield
- Required to pay more in premiums.
- Those who have opted out from ElderShield can opt-in for CareShield if they are not currently disabled.
|If you are on |
|If you are on
|Pay a base premium for 10 years or until age 67, whichever is longer*|
|Note: *Base premuim increases regularly to support payout increases, while catch-up component is flat.||Pay a catch-up premium** for 10 years
Note: Those who are not on ElderShield have to pay the base premium and a higher catch-up premium.
** The catch-up premium also applies to those who opted out of ElderShield400 and later opted in; who join CareShield Life in 2022 onwards; and who stopped paying premiums after a minimum of 9 years (ElderShield400) or 11 years (ElderShield300).
Source: The Straits Times
Here’s an example of the premium breakdown of both male and female:
What does the Community think?
- Gabriel Tham – One big problem govt will face is increasing healthcare costs. The more healthcare costs increase, the more premium they have to take from Medisave
- Ashlyn Ho – Is everyone compulsory to pay this Careshield life? If yes, I’m concerned for those who is unemployed. Is Medisave sufficient to pay for Medishield life and now Careshield? We also need Medisave to be sufficient in case we really hospitalize
- Kino Ng – Sounds good, at least it helps those people who touch wood reached a very old age and unable to do the 3 out of 6 things and still managed to get the payout.
If you have more questions, we have an open community for you to get your questions answered and to hear from different perspectives as well. Check out our blog for more unbiased opinions on your personal finance journey.
I’ll see you in the next one, till then!