CareShield Life Guide 2021: What It Is & How to Make the Most of It

By 2050, practically half of Singapore’s inhabitants can be at the least 65 years outdated. Authorities spending on healthcare is predicted to go up, and as people, we’ll must make preparations to make sure that we are able to afford it, too.

You would possibly already be acquainted with authorities schemes like MediSave and MediShield Life, that are designed that can assist you afford medical care.

However what if you happen to turn into disabled attributable to age or antagonistic well being situations? Neither scheme can totally cowl your long-term care wants. Enter CareShield Life, a incapacity insurance coverage scheme that pays out in your private and medical bills.

What’s CareShield Life? 

CareShield Life is a incapacity insurance coverage scheme launched by the federal government in October 2020. The scheme will pay out a month-to-month revenue if you happen to turn into severely disabled, irrespective of the place on this planet you’re residing.

What qualifies as “severely disabled”? CareShield Life defines this as being unable to carry out at the least 3 out of 6 Actions of Each day Dwelling (ADLs). They’re:

• Washing – Washing within the bathtub or bathe (together with getting out and in) or by different means
• Dressing – Placing on, eradicating, securing and fastening all garments, braces, synthetic limbs or different surgical or medical home equipment
• Feeding – Feeding your self ready and accessible meals
• Toileting – Utilizing the bathroom and managing bowel and bladder operate by way of using protecting undergarments or surgical home equipment if applicable
• Strolling or transferring round – Transferring indoors from room to room on stage surfaces
• Transferring – Transferring from a mattress to an upright chair or wheelchair and vice versa

You might be entitled to CareShield Life payouts if you’re unable to carry out at the least 3 of the above.

Do we actually want CareShield Life?

How actual is the necessity for payouts whenever you’re disabled?

Properly, an estimated 1 in 2 wholesome Singaporeans aged 65 may turn into severely disabled earlier than they die. Being severely disabled usually means we want assist with consuming, going to the bathroom or strolling round — actions that require a caregiver of some form.

Whereas CareShield Life sounds suspiciously like MediShield Life medical insurance, there’s no duplication of protection.

CareShield Life pays out money to assist with your residing bills. MediShield Life and MediSave, then again, solely cowl medical bills as and once they’re incurred. You don’t get a payout in money.

Is CareShield Life obligatory?

The scheme will routinely cowl Singapore Residents and Everlasting Residents born in 1980 and later, from the age of 30 onwards. (Not but 30? You’ll obtain a notification letter 2 months earlier than your thirtieth birthday.)

As soon as enrolled, it’s necessary and you can not decide out.

These born earlier than 1980 can apply to hitch from the top of 2021 onwards. There isn’t a age restrict, and the federal government will launch data on find out how to apply afterward within the yr. Nonetheless, you can not be a part of the scheme if you’re already severely disabled.

If you happen to had been born between 1970 and 1979, you’d be presently insured underneath the ElderShield scheme and can be routinely enrolled into CareShield Life from the top of 2021. You’ll be able to decide to remain on ElderShield by 31 Dec 2023 if you want.

CareShield vs ElderShield – which is best?

CareShield Life replaces ElderShield, the federal government’s earlier incapacity insurance coverage scheme. It’s a a lot better insurance coverage plan, with larger and longer payouts.

For starters, CareShield Life raises ElderShield’s month-to-month payouts of $300 to $400 to $600, a sum which is able to can be adjusted upwards over time with the intention to accommodate the rising value of residing. And whereas ElderShield’s advantages had been paid out over a interval of 5 to 6 years, CareShield’s Life’s can be payable for all times, or so long as the extreme incapacity persists.

The entry age for CareShield Life can also be earlier at 30, versus ElderShield’s earlier 40, and premiums for CareShield Life can be paid till 67, versus ElderShield’s 65.

After all, in change for enhanced safety, larger premiums have to be paid. CareShield Life premiums are larger than ElderShield’s and, if no declare is made, rise till you attain the age of 67.

How a lot are CareShield Life premiums?

On the age of 30, premiums begin at $206 for males and $253 for girls. They rise by 2% yearly till the age of 67. You’ll be able to pay in your premiums totally utilizing MediSave.

Learn extra: MediSave Limits in 2021: When Can You Use MediSave to Pay?

Additionally, when you turn into disabled sufficient to make a declare, you now not have to pay the CareShield Life premiums.

How a lot does CareShield Life pay out?

After paying the premiums and being enrolled within the CareShield Life scheme, you possibly can declare month-to-month payouts for so long as you’re severely disabled (i.e. unable to carry out at the least 3 out of the 6 ADLs above).

When the scheme was launched in 2020, the month-to-month payout was set at $600. The payout rises 2% per yr from 2020 to 2025, so in 2021 the payouts needs to be about $612 a month.

From 2026 onwards, CareShield Life payouts can be adjusted relying on suggestions following a evaluation.

Nonetheless, when you make a profitable declare or hit the age of 67, whichever is earlier, your CareShield Life payout quantities can be mounted and subsequently now not rise.

Do you have to improve your CareShield Life?

Below the default CareShield Life scheme, month-to-month payouts are somewhat low. $612/month solely sounds first rate if you happen to’re younger and merely quickly disabled, and might return to work when you get better.

Nonetheless, if you happen to’re in outdated age and going to be disabled for the foreseeable future, it’s fairly dismal. Particularly for the reason that quantity stays mounted when you begin receiving payouts.

You’ll be able to improve your CareShield Life safety by buying a CareShield Life complement from certainly one of 3 personal insurers: Nice Jap, Singlife with Aviva or NTUC Revenue. They have the next advantages:

• They make it simpler to qualify for incapacity revenue by reducing the variety of ADLs from 3 to 2 (and even 1)
• They improve your month-to-month payouts to a extra comfy quantity of your alternative
• Some plans permit you to select rising payouts to match inflation
• You should use as much as $600 a yr from MediSave to pay the extra premiums

The way to determine on a CareShield Life complement?

When shopping for a CareShield Life complement, you have to determine how a lot incapacity revenue you need. Given the uncertainty of long-term care prices and the length of extreme incapacity ought to this occur to us, understanding this quantity might be troublesome.

In the very best case situation, you’ve a member of the family keen to take care of you at no cost. However you’d nonetheless want sufficient in your each day residing bills, mobility aids, transport and so forth.

However, your incapacity might be so extreme that you have to be positioned in a nursing dwelling. This could value hundreds of {dollars} a month.

In any case, it is best to have a quantity in thoughts earlier than you begin evaluating. It’s comparatively easy to check suppliers since there are solely 3 insurers.

Learn extra: CareShield Life Complement Comparability: NTUC vs Aviva vs Nice Jap

How do you make a CareShield Life declare?

You’ll be able to’t merely declare that you just’re unable to carry out 3 out of 6 ADLs and count on to obtain your first payout. No — to make a declare, you have to be formally assessed by an MOH-accredited extreme incapacity assessor.

The evaluation prices $100 at a clinic and $250 if the assessor travels to your own home, however this price is waived if it’s your first evaluation for the needs of CareShield Life. If you’re discovered to be severely disabled, the complete evaluation price can be reimbursed along with your first payout.

These residing in nursing houses can simply get the house to submit a Resident’s Evaluation Kind, which might substitute the extreme incapacity evaluation.

Upon getting been assessed as severely disabled, you possibly can then submit a declare utility kind to the Company for Built-in Care (AIC) by logging in right here along with your SingPass.

In case you have a personal CareShield Life complement plan, your agent would possibly be capable of assist with the declare. Nonetheless, the process will pretty comparable.

What are the following steps it is best to take?

Having incapacity insurance coverage like CareShield Life is nice, however we expect it’s much less vital than different areas reminiscent of medical insurance. If you happen to haven’t finished a single factor about your insurance coverage protection, it is best to undoubtedly begin there first.

Learn extra: Well being Insurance coverage in Singapore — Every little thing You Have to Know to Survive

As the federal government’s MediShield Life affords solely very primary protection, we extremely suggest choosing an Built-in Protect plan to complement your medical insurance. You’ll be able to evaluate suppliers and get quotes on MoneySmart.

Subsequent, in case you have dependents, you may additionally wish to kind out your life insurance coverage. This ensures that your dependents will nonetheless have a roof over their heads and a few cash to reside on if you happen to die an premature loss of life.

As soon as that’s sorted, you possibly can transfer on to incapacity insurance coverage to beef up your safety even additional. Contemplate choosing a CareShield Life Complement if you happen to can afford it. It covers extreme incapacity at any age (not simply whenever you’re outdated) so consider it as a hedge towards accidents as nicely.

However if you happen to’ve reached your restrict for insurance coverage spending in the mean time and are comparatively younger, you possibly can all the time postpone the acquisition of a CareShield Life complement to a later age.

Discovered this text helpful? Share it with anybody who’s eligible for CareShield Life.