Did you know that 50% of healthy Singaporeans over the age of 65 could become severely disabled , according to MOH.
CareShield Life was introduced on 27 May 2018. It is a plan that to replace the existing Eldeshield by year 2020. CareShield Life provides higher monthly payout ($600/month) for lifetime if the person unable to perform 3 activities of daily livings (ADLs), while existing Eldershield provides $400/month for 6 years. You can find out more about CareShield Life here and here.
I have received many comments on social media and from my clients, all of them carry different views. Here are my personal views on the new CareShield Life:
1. Voluntary change to Mandatory
For existing Eldershield arrangement, you will have the option to opt-out from the coverage. Based on my experience, only a small group of people will choose to opt-out. Most of them are confused about the Eldershield coverage. I believe that by making it as mandatory and with proper explanation, people will appreciate this change.
2. Entry age at 30 instead of at age 40
Personally, I agree with this change. By allowing individual to join at younger age will cover any medical conditions that may develop during their thirties. Similar to most of the insurance plans, entering at younger age should lower the cost of coverage.
3. Higher premium for higher and longer payout
I think the plan should allow individual to choose the premium and payout structure. Not everyone likes the idea of paying more for insurance. Although the payout received versus the premium paid for CareShield Life is higher than Eldershield, some may not see it as necessary. Especially for people who don’t have enough medisave.
4. Increasing payout structure
The payout from CareShield Life increases up to the point of claim. However, it remains fixed during the payout period. I find that the structure to be a bit complex. If the intention of increasing payout is to counteract for the higher long term care expenses due to inflation. Why not also allow them to increase the payout as well?
5. Careshield life enhancement?
Just like the existing Eldershield, where you can choose to get higher payout by getting Eldershield enhancement, I hope there will be a CareShield Life enhancement in the future. This will give individuals an option to upgrade their CareShield Life for better coverage.
My Opinion?
Overall, I think the changes for CareShield Life is good. With longer life expectancy and advancement of medical treatment, one will certainly need a better coverage in the event of disability. You can find more information about the roles of insurance in your life journey over here.
I think the question mark is whether the premiums are priced fairly or not.
Many people before they die will be severely disabled such that they can barely move and need others to help carry or lift them.
Question is how long they are in this state before they die?
Becoz for strict interpretation of the current 3 out of 6 ADLs, the person must be almost bedridden and no strength.
Many cases of Eldershield claims being rejected as they can still move their arms or upper body and being deemed by medical panel as still able to do 3 out of 6 ADLs.
I have friends in the medical / healthcare industry and from their observations those patients who really in the state of unable to perform 3 out of 6 ADLs usually don’t live long.
I am total support of Careshield and the current improvements over Eldershield. So this means that those people who are 30 and above and currently disabled by 3 or more ADLs would immediately get the $600 monthly payout once this program starts in 2020. This would help a lot of people, especially those with rare disorders. I just hope that it can start from even age 1, since now, all newborns would have Medisave contribution by Government.
Yup, the devil is in the details. It’s severe disability, which Sinkie mentioned that folks in such situations don’t live long after.
And where is the evidence behind the claim that 50% above 65 will be so severely disabled?
May I asked if there is any conflict of interest or maybe contributor should state if there is any benefit received for any recommendation although I appreciate the writers sharing.
Why is there a need for it to be compulsory? Some people can afford to “self-insure” since the payout is only $600/mth and as mentioned by another commenter, people tend not to live long once they are unable to do 3 out of 6 ADL. Others may already have their own disability insurance. Others may be living overseas permanently with no intention to return. The people can make their own choices.