CareShield Life takes effect from 1st Oct 2020. What is it all about?
What you should know about CareShield Life
CareShield Life replaces ElderShield (Those who are on ElderShield can opt to switch)
CareShield Life will be automatically effected on all Singaporeans born 1980 or after.
CareShield Life provides basic financial protection in the case of severe disability.
Premiums will be deducted from MediSave account.
What is it?
On 1st October 2020, the compulsory CareShield Life will take effect for all Singaporeans. CareShield Life is the national insurance scheme that replaces Eldershield (which covers those born in 1979 or earlier). It offers basic financial protection for those who suffer from permanent disability and need long term care.
Why do you need it?
50% of healthy Singaporeans aged 65 and above could face disability in their lifetime, and may need long-term care as a result of that. While it is important that we all need to plan ahead in the case of emergency and uncertainty, there is no golden formula that can accurately predict the costs of long-term care if you should ever need it.
This is why blanket insurance schemes like CareShield Life give a peace of mind in case of disability, as it consolidates each person's risk into one large single pool.
Who does it cover?
If you are born 1980 or later, you will be automatically enrolled into CareShield Life. This is mandatory and no further actions will be needed on your end. If you are born 1979 and earlier, you may opt in to join CareShield Life if you are not severely disabled.
For those born in between 1970-1979, insured under ElderShield 400 and not severely disabled, you will automatically be switched over to CareShield Life from end-2021.
What are the benefits?
Lifetime coverage once all premiums have been paid (once you reach age 67 or 10 years after joining CareShield Life, whichever is later)
Lifetime cash payouts (starting at $600 in 2020 and increasing over time)
When can you claim?
Those suffering from severe disability are eligible to claim from the scheme. The claimant would need a Ministry of Health accredited severe disability assessor to make an assessment, and that the claimant is shown to be unable to perform at least 3 out of the 6 Activities of Daily Living (ADLs). The 6 activities are:
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