• Daniel Lee

3 Minute Crash Course on CareShield Life

As CareShield Life is expected to start on 1st October 2020 and it affects a good chunk of both Singaporeans and Permanent Residents, here's a quick crash course on the scheme to bring you up to date about the scheme itself.


Who’s managing the scheme?

The scheme itself is managed by Central Provident Fund and an Agency of Integrated Care will be appointed as the administrator.


What are the odds of severe disability?

1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime and may need long-term care. A severe disability may arise due to a sudden disabling event (e.g. stroke and spinal cord injuries), the worsening of chronic conditions and diseases (e.g. diabetes), or the progression of illnesses as we age (e.g. dementia).


What are you covered for under the scheme?

The pay-out under CareShield will

  • amount to $600/month (as at 2020)

  • last for a lifetime

  • increase by 2% every year until age 67 or when a successful claim is made

  • increment in payout is subjected to changes (after 2025)

  • covers pre-existing conditions

Estimated claim amount assuming that you're 30 years old

In terms of financial planning, the payout under the scheme can be used to offset any caregiver expenses that will surface in an event where you're unable to sustain independent living due to your disability.


How much are you expected to pay?

  • for an estimate of your premiums payable please refer to this.

  • premium will increase overtime by 2% per year (subjected to changes after 2025)

  • premiums are payable till age 67 – so long as you enrol before the age of 59

  • premiums are payable for 10 years if you enrol after the age of 59

  • cost will be scaled accordingly depending on the entry age

  • for those who is not on ElderShield 400, they will be required to pay a higher premium – a flat amount over 10 years – on top of the base premium called the “catch-up” component.

Do You need to do anything today?

Is there a maximum age of entry for CareShield

Unlike EldersShield scheme where there is a maximum age of entry of 64 Years old, there will not be any maximum entry age for CareShield Life.


How do you claim?

In an event of claim, you can make a claim to Agency for integrated care & arrange for disability assessment by MOH accredited severe disability assessor.


Will there be CareShield Supplements?

While there is no news of a “CareShield Supplement” yet, I’m quite positive that new products will be launched in the near future to replacement the previous ElderShield Supplement.


As such, I will be updating this article AND writing a new article on CareShield Supplements once there is more information on this topic.


To stay updated to future developments join the telegram channel here.


Frequently Asked Questions

For more frequently asked question you can refer to this page.


Daniel is a Licensed Independent Financial Consultant with MAS and a certified Associate Wealth Planner that provides advice in the following areas:

  • for investment and portfolio management advice - find out more here

  • for insurance planning and portfolio optimization advice – find out more here

  • for retirement planning advice– find out more here

Disclaimer:

This article is meant to be the opinion of the author and is for information purposes only.

This article should not be seen as a financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore

Source:

https://www.careshieldlife.gov.sg/home.html

https://www.aic.sg/financial-assistance/careshield-life

https://www.providend.com/launch-of-careshield-life-in-2020-how-does-it-affect-you/


359 views

Join the Telegram Channel!

Telegram Updates From Daniel (1).jpg

Get in touch today!

Whatsapp.png
Telegram.png

+65 9234 7537

©2019 by DanConsultancy.