Best CareShield Life Supplement Comparison: Should You Upsize Your CareShield Life With Aviva Great Eastern or NTUC Income?
366
shares

Best CareShield Life Supplement Comparison: Should You Upsize Your CareShield Life With Aviva Great Eastern or NTUC Income?

profileJoel Koh
366
shares

At the risk of sounding too privileged when I say this, but one of the dilemmas I face sometimes is when I order a meal at a fast-food restaurant.

My finger will hover over the touchscreen as I calculate in my mind whether this upsize is worth it and asking myself these questions:

greenbay packers confused
Source: Giphy

Will the food be enough? Will I be full with the main meal? Will this affect my ability to retire early?

But trivial #firstworldproblems aside, I’m here to discuss a more serious issue and answer some questions you might have about CareShield Life.

Is the basic coverage from CareShield Life enough?

Should you ‘upsize’ your CareShield Life coverage with supplements that can raise your payouts by up to five times?

Which of the supplements from Aviva, Great Eastern or NTUC Income is best for you?

As always we got you!

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be financial advice. ​Readers should always consider their own needs and seek advice from a trusted licensed financial adviser.


TL;DR: CareShield Life Supplements Comparison: Aviva vs Great Eastern vs NTUC Income

DetailsAviva
MyLongTermCare Plus
GE Great CareShield AdvantageNTUC Income Care Secure
Monthly Benefit AmountMin: $200 | Max: $5,000
(in multiples of $100)
Min: $300 | Max: $5,000
(in multiples of $100)
Min: $1200 | Max: $5,000
(in multiples of $100)
Monthly Benefit Payout CriteriaInability to do
at least 2 ADLs
Monthly Benefit:
Inability to perform 3 out of 6 ADLs payout
Pays out in addition to Careshield LifePays out in addition to Careshield LifeMonthly payout is INCLUSIVE of CareShield Life payout, reducing overall payout amount
Premium Payment Term
(Age Next Birthday ANB)
Pay up to age 69 and 99Pay up to age 65 & 80Pay up to age 67 & 84
Premium WaiverInability to do
at least 1 ADL
Inability to do
at least 2 ADLs
Policy TermLifetime
Escalating Payout OptionsChoice of fixed payouts or escalating payouts at fixed rates of 2% or 3% p.a.No option
Additional Lump Sum Payout300% of monthly benefit with inability to do at least 2 ADLs300% of first monthly benefit with inability to do at least 1 ADLs300% of first monthly benefit with inability to do at least 2 ADLs

600% of first monthly benefit with inability to do at least 3 ADLs
Additional Dependent Payout20% of monthly benefit for up to 36 months if you have a dependent (below age 22) and you become disabled-25% payout for up to 36 months if you have a dependent (below age 21) and you become disabled
Additional Death Benefit300% of monthly benefit in the event of your death-300% of monthly benefit in the event of your death
Additional Caregiver Relief Benefit60% of monthly benefit for up to 12 months with inability to do at least 2 ADLs
--
DiscountPerpetual 20% premium discount for >$500 monthly sum assured
(From now till 31 Dec 2020)
Get 20% off first year premium and enjoy free 12 months' Dengue Care
(From now till 31 Jan 2021)
-

Before we take about the CareShield Life supplements. Here’s a quick recap about CareShield Life from our coverage of the scheme which launched on 1 October 2020.

280820 - CareShield Life Seedly What is CareShield Life?

Simply put, the new CareShield Life is an upgrade on ElderShield.

It is a long term care mandatory Government insurance policy that offers a lifetime cash payout if you have been assessed by a Ministry of Health (MOH)-accredited severe disability assessor to be unable to perform at least three out of the six Activities of Daily Living (ADLs).

But, do note that unfortunately, if you suffer from a major disability which robs you of the ability to perform one or two out of the six ADLs, you will not receive any payouts from CareShield Life.

CareShield Life Activities of Daily Living (ADLs) Criteria

These ADLs include:

 

Careshield Life ADL Criteria
Source: MOH

If you do not have to claim for this insurance policy, these payouts will increase over time.

These payouts start from $600 a month in 2020 and will increase by 2 per cent per annum (p.a.) for the first five years (until 2025) or when a successful claim is made, whichever is earlier.

After 2025, future payouts will vary depending on the regular adjustments.

Also, the premiums are fully payable via MediSave, with Government subsidies available if you need help paying for the premiums.

Is The Basic CareShield Life Insurance Plan Enough?

Real talk, the $600 a month payout for the basic CareShield Life plan is barely enough.

Here’s why.

A study published by the Lee Kuan Yew School of Public Policy found that Singapore seniors above the age of 65 need a minimum of $1,379 a month to meet their basic needs.

For seniors aged 55 to 64 years old, the monthly amount needed is $1721.

This is just the baseline, and it does not factor in long term care costs if Singapore seniors were to be afflicted chronic conditions and major illnesses that causes severe disability.

If your coverage is just $600 a month, you will have to contend with the additional financial burden of treatment and care on top of your monthly daily expenses.

Currently, you will need to fork out and an additional amount of at about $1,200 for nursing care today.

Generally, the cost from nursing homes ranges from about $1,200 to $3,500 a month before Government subsidies that range from 10 to 75 per cent.

This cost varies and depends on the level of care required and the facilities needed.

That is just for nursing costs today, but what about the future?

Medical Inflation in Singapore

mercer logo

According to the Mercer Marsh Benefits’ 2019 Medical Trends Around the World surveySingapore’s medical trend rate, a measure of the cost of medical inflation in 2018 alone was 10 per cent!

In comparison, the Monetary Authority of Singapore (MAS)’s core inflation measure stood at 1.7 per cent in 2018.

It may seem quite far away, but should you become afflicted with a disability 30 to 40 years down the road, you will need more money for treatment or rehabilitative care to keep up with the pace of medical inflation.

As such, I would liken the basic CareShield Life plan as just buying the burger ala-carte if you go to a fast-food place.

SpongeBob SquarePants Doing Tricks and Flipping A Burger Patty
Source: SpongeBob SquarePants | Giphy

I don’t know about you, but I would still be hungry eating just the burger.

This is the same as the basic CareShield Life plan. As coverage is not enough, you can consider a CareShield Life supplement to ‘upsize’ your coverage,

However, do note that there might be a bit of overlap with your term of life insurance coverage with Total Permanent Disability protection.

What Are CareShield Life Supplements?

CareShield Life supplements are plans which supplement the coverage of the basic CareShield Life plan.

But, do note that you will need to be an existing policyholder under CareShield Life to purchase a supplement plan.

In general, these supplement plans will make it easier for you to make claims as most of them reduce the ADL claim criteria from 3/6 ADLs to only 2/6 ADLs.

Also, the monthly payouts from the supplement plans can go up to $5,000, and most are add-ons to the basic CareShield Life monthly payouts.

In other words, after receiving the $600 per month basic payout from the basic CareShield Life plan, you will receive an additional monthly payout from the supplement plan you have bought.

Premiums can be paid using cash or your own or your family members’ (i.e. spouse, parents, children, siblings or grandchildren) Medisave within the Additional Withdrawal Limit (AWL).

However, the amount you can use to pay the premiums for the supplement plan is capped at $600 per calendar year per person insured.

Currently, there are three private insurers that are offering CareShield supplements.

Here is a comparison of their offerings:

CareShield Life Supplements Comparison: Aviva vs Great Eastern vs NTUC Income

DetailsAviva
MyLongTermCare Plus
GE Great CareShield AdvantageNTUC Income Care Secure
Monthly Benefit AmountMin: $200 | Max: $5,000
(in multiples of $100)
Min: $300 | Max: $5,000
(in multiples of $100)
Min: $1200 | Max: $5,000
(in multiples of $100)
Monthly Benefit Payout CriteriaInability to do
at least 2 ADLs
Monthly Benefit:
Inability to perform 3 out of 6 ADLs payout
Pays out in addition to Careshield LifePays out in addition to Careshield LifeMonthly payout is INCLUSIVE of CareShield Life payout, reducing overall payout amount
Premium Payment Term
(Age Next Birthday ANB)
Pay up to age 69 and 99Pay up to age 65 & 80Pay up to age 67 & 84
Premium WaiverInability to do
at least 1 ADL
Inability to do
at least 2 ADLs
Policy TermLifetime
Escalating Payout OptionsChoice of fixed payouts or escalating payouts at fixed rates of 2% or 3% p.a.No option
Additional Lump Sum Payout300% of monthly benefit with inability to do at least 2 ADLs300% of first monthly benefit with inability to do at least 1 ADLs300% of first monthly benefit with inability to do at least 2 ADLs

600% of first monthly benefit with inability to do at least 3 ADLs
Additional Dependent Payout20% of monthly benefit for up to 36 months if you have a dependent (below age 22) and you become disabled-25% payout for up to 36 months if you have a dependent (below age 21) and you become disabled
Additional Death Benefit300% of monthly benefit in the event of your death-300% of monthly benefit in the event of your death
Additional Caregiver Relief Benefit60% of monthly benefit for up to 12 months with inability to do at least 2 ADLs
--
DiscountPerpetual 20% premium discount for >$500 monthly sum assured
(From now till 31 Dec 2020)
Get 20% off first year premium and enjoy free 12 months' Dengue Care
(From now till 31 Jan 2021)
-

Do note that for these policies, premium rates are not guaranteed and they may be adjusted from time to time based on future experience.

How to Choose?

Based on the above table, and in my opinion, Aviva’s MyLongTermCare Plus supplement plan is the best offering.

Aviva’s MyLongTermCare Plus Review

This is so as the plan pays out in addition to the basic CareShield plan in the event that you are unable to perform two out of six ADLs.

Aviva Logo

The waiver of premiums when you are unable to perform one out of six ADLs, as well as the perpetual 20 per cent discount on premiums for sum assured of $500 or more, is also pretty neat too.

Not to mention the myriad of additional benefits as well as the option for you to choose an escalating payout benefit.

However, you will have to pay more for the escalating payout benefit with escalating premiums as well.

Another thing that sets the Aviva supplement plan part is the Guaranteed Issuance Option (GIO) that allows you to increase the monthly benefits by up to 50 per cent, with no medical underwriting during the seven Aviva defined life stage events.

Great Eastern Great CareShield Advantage Review

The next best option would be the GE Great Care Shield Advantage supplement plan.

Great_Eastern_logo

Similar to Aviva’s offering, this plan pays out in addition to the basic CareShield plan in the event that you are unable to perform two out of six ADLs.

The waiver of premiums when you are unable to perform one out of six ADLs and the lump sum payout of 300 per cent of the monthly benefit with the inability to do one ADL is good too.

We also like that you’ll get 20 per cent off the first-year premium and the free 12 months’ Dengue Care insurance.

However, it does not have as many additional benefits as Aviva’s plan.

NTUC Income Care Secure Review

NTUC’s Income Care Secure supplement plan is my least favourite offering.

Although NTUC has higher additional benefits like:

  • Lump-sum payout of 300% of the first monthly benefit with the inability to do at least 2 ADLs.
  • Lump-sum payout 600% of the first monthly benefit with the inability to do at least 3 ADLs.
  • Lump-sum payout 300% of the monthly benefit in the event of your death in the event of death during the disability payout period.
  • 25% payout for up to 36 months if you have a dependent (below age 21) and you become disabled.

There are some drawbacks.

We don’t like that the premium waiver is only given in the event that you are unable to perform at least two ADLs compared to an inability to perform one out of six ADLs for the other plans.

Also, the major drawback is also the fact that the monthly benefit paid out in the event that you are unable to perform at least three is INCLUSIVE of CareShield Life payout.

This reduces the overall payout amount.

How to Buy

If you are interested to find out more and compare premium prices, you may contact a trusted licensed financial adviser or head on over to their websites for a quote.

aviva vs GE vs NTUC Income
Source: Aviva | Great Eastern | NTUC Income

Here’s how they compare if you want to get a quote or buy the insurance policies.

In terms of convenience and the user purchase journey, Aviva is the least convenient of the three.

For Aviva. you will have to navigate a follow-up page where you will need to fill in their particulars to request for a callback from their agents/team.

Great Eastern and NTUC Income are better in this regard as their websites allow users to generate a quote online and make the purchase directly with Singpass.

Personally, I find Aviva’s option quite inconvenient, relative to the seamless online purchasing experience you get with Great Eastern and NTUC Income.

What Will Happen to my ElderShield Supplement After Joining CareShield Life?

If you have an existing ElderShield Supplement policy, fret not.

According to the Ministry of Health:

Your ElderShield Supplement policy will stay in-force as long as you continue to pay premiums and do not terminate your coverage. You would also be able to claim from both your ElderShield Supplement policy and CareShield Life as long as you fulfil the respective claim criteria.

ElderShield Supplements will continue to be administered by the private insurers, even after the Government takes over the administration of ElderShield from end-2021.

What Are Your Thoughts on The CareShield Life Supplement Plans?

Head on over to the SeedlyCommunity and share your thoughts!

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be financial advice. ​Readers should always consider their own needs and seek advice from a trusted licensed financial adviser.

profile
About Joel Koh
History student turned writer at Seedly. Before you ask, not a teacher. My time as a history student has equipped me with the skills to evaluate the impact societal development has on financial and nonfinancial events.
You can contribute your thoughts like Joel Koh here.

Still have more questions after reading the article? Fret not, ask our community here!

Stay updated with the latest finance tips!
Receive bite-sized finance on Telegram here.

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
Comments
366
shares

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

Still have more questions after reading the article? Fret not, ask our community here!