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Careshield Life Supplement: Best Upgrade Option & Comparison

1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime, and may need long-term care. According to careshieldlife.gov.sg

Since 1st Oct 2020, all Singaporeans and PR born between 1980 and 1990 will be automatically covered by Careshield life.

If you are a Singapore Citizen or Permanent Resident born between 1970 and 1979, you will be automatically enrolled in CareShield Life from end-2021. You can opt out of CareShield Life by 31 Dec 2023 if you do not wish to join the scheme. You will automatically be placed back onto your ESH400 scheme.

How does the careshield life work and what are the prospective upgrades available for careshield life? How does it differ from it’s predecessor the Eldershield 400? Lets find out

Difference between Careshield Life & Eldershield 400

careshield life upgrade

One thing we can confirm is that the Careshield Life is definitely a improved version of Eldershield 400 but how sustainable is it for a person of disability to only rely on just Careshield life to supplement their loss of ability to earn an income?

$3,000 Per Month: Cost of Disability & Basic Living Standard in Singapore

According to a recent research done by a few professors from NTU & NUS, in this focus group, 103 participants including people living in rental flats, private property, women as well as minorities were interviewed. The research finds that Singaporeans needs around $1,379 monthly to meet their basic living standard.

In the unfortunate scenario of disability and for one to require long term care for the rest of their lives, the cost of nursing home in Singapore can cost anywhere from $1,200 to about $4,500 per month, depending on the type of bedroom and level of care required, and that’s not including the variable charges such as mobility aid rental/purchase and other emergency needs.

Hence an estimated monthly expense of $3,000 might be expected in the event one suffers from severe and long-term disability.

Causes of Disability and Claim-ability

Careshield life plus

According to Aviva Singapore the number one cause of severe disability is stroke follow by cancer. Anxiety and depression rank the highest cause among teenagers and young adults. However, there is also concern on what constitutes claimable disability for conditions such as anxiety and depression. For example, if one wants to make a claim on careshield life, an individual has to be severely disabled. Severe disability is defined as the inability to do 3 out of 6 Activities of daily living. So, if an individual suffers from a major disability and cannot do 2 out of 6 Activities of daily living instead, careshield life will not pay out.

Hence in order to mitigate such scenario, a few insurers have come out with a more lenient solution that will supplement the careshield life payout in the event the insured suffers from a less severe disability such as an inability to do 2 out of 6 Activities of daily living.

Careshield Life Supplement

careshield life supplement upgrade

Activities of Daily Living (ADL)
  • Washing
  • Feeding
  • Transferability
  • Moving Around/Mobility
  • Dressing
  • Toileting

There are two main aspect how an individual can benefit immensely from Careshield Life Supplement. First, instead of requiring the inability to do 3 out of 6 activities living to unlock the payout from careshield life, careshield life supplementary holders will be able to receive payout in the event they are unable to do 2 out of 6 activities of daily living. Second, policy holders will be able to opt for a higher payout of up to $5,000/mth. The good news is applicants will be able to utilise up to $600 additional withdrawal limit from your medisave to fund this upgrade. So how much can you get if you were to fully utilise your medisave only for the upgrade? First lets talk about the features of the individual insurer on their respective supplementary plans.

Best 2 out of 6 ADL Supplement Careshield Life Upgrade in terms of Full Medisave Utilisation – NTUC Income Care Secure
Careshield life upgrade

 

Why is NTUC Income Care Secure Good?
  • Pays out monthly income in the event of inability to do 2 out of 6 ADL
  • Premium term options of 67 and 84 years
  • Cheaper premium at a lower sum assured, Able to fully utilise Medisave $600 to get more coverage
  • Additional lump sum of 300% Sum Assured payout in the event of inability to do 2 out of 6 Activities of Daily Living (ADL)
  • Additional lump sum of 600% Sum Assured payout in the event of inability to do 3 out of 6 ADL
  • Additional 25% payout for up to 36 months if you have a dependent and you become disabled
  • Death benefit of 300% during your disability payout period
  • Waiver of premium during inability to do 2 out of 6 ADL
What we don’t like
  • Premium gets exponentially more expensive as the sum assured increases
  • No escalating payout option in the event of inability to do 2 out of 6 ADL
  • Payout in the event of 3 out of 6 ADL will less off the Careshield Life payout, it will not be ontop of
Best 2 out of 6 ADL Supplement Careshield Life Upgrade in Terms of Features – Aviva MyLongTermCare Plus

Careshield life supplement

Why is Aviva MyLongTermCare Plus Good?
  • Pays out monthly income in the event of inability to do 2 out of 6 ADLs
  • Great value for higher sum assured
  • Pays out in addition to Careshield Life during inability to do 3 out of 6 Activities of daily living
  • 20% Perpetual premium discounts for $500 and above premium
  • Waiver of premium in the event of inability to do 1 out of 6 ADLs
  • Premium term options till ANB 69 and 99
  • Additional lump sum of 300% Sum Assured payout in the event of inability to do 3 out of 6 Activities of Daily Living (ADL)
  • Additional 20% payout for up to 36 months if you have a dependent (below 22 ANB) and you become disabled
  • Additional Monthly Caregiver Relief benefit ôf 60% Sum Assured will be paid out for up to 12 months in the event of 2 out of 6 ADL
  • Guaranteed insurance during life 7 stage events to increase coverage by 50%
  • Option to choose escalating payout benefit
  • Paid-up feature in the event of future cessation of premium, plan will still pay subjected to pro ration
What we don’t like
  • Escalating payout feature will result in escalating premium
  • Expensive premium for lower sum assured
  • Premium term for best valued is till age 99
Best 2 out of 6 ADL Supplement Careshield Life Upgrade in Terms of Shortest Payment Term – Great Eastern Great Careshield Advantage

Careshield life upgrade GE

Why is GE Great CareShield Advantage Good?
  • Pays out monthly income in the event of inability to do 2 out of 6 ADLs
  • Pays out 300% Sum Assured Upon inability to do 1 out of 6 ADLs
  • Waiver of premium in the event of inability to do 1 out of 6 ADLs
  • Premium term options till ANB 65 and 80
  • In the event of the inability to do 3 out of 6 ADL, receive pay-out from Great Careshield + Careshield Life
What we don’t like
  • Expensive Premium
  • No Other Major Features or Additional Scenario Based Payout

Careshield Life Upgrade 2 out of 6 ADL Payout Premium Table

We have summarised the premium for careshield life upgrade between Aviva, Great Eastern and NTUC for your reference.

Summary of Leveled Annual Premium & Payout Table and Comparison Aviva MyLongTerm Care Plus Male & Female (Pay till Age 99). The first $600 annual premium is payable by Medisave. Premium highlighted in Green means no cash outlay required if you have sufficient amount in your Medisave.

Aviva LongTermCare Plus Premium Table

Summary of Leveled Annual Premium & Payout NTUC Income Care Secure (Pay till age 84) – For Male & Female Payable till Age 84. The first $600 annual premium is payable by Medisave. Premium highlighted in Green means no cash outlay required if you have sufficient amount in your Medisave.

NTUC Care Secure Premium Table

Summarised of Leveled Annual Premium & Payout Great Eastern Great Careshield Advantage (Pay till age 80) – For Male & Female Payable till Age 80. The first $600 annual premium is payable by Medisave. Premium highlighted in Green means no cash outlay required if you have sufficient amount in your Medisave

GE Great Careshield

What do you do next?

Seek Advice on how much coverage you should get and which Careshield Life Supplement is the best for you!

A Licensed Planner will draft their proposals based on your given input. Your information and details will only be used for communication with you.

All comparisons done are solely based on your individual needs.

 

 

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  1. […] have all heard it, Careshield life will kick-in in 2020 whether we like it or not. Unlike its predecessor, Careshield Life will no […]

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