4 Reasons Why Your Future Self Will Thank You For Enrolling In CareShield Life

You have a stable job, a beautiful home, and an amazing family. Besides a few wrinkles on your face, you can safely say life is pretty good. But just like the coronavirus, life is unpredictable. You never know when accidents or illness might happen so it’s best to be prepared. The Singapore Government sure knows that – which is why they have introduced CareShield Life, a new long-term disability insurance.
CareShield Life is essentially an upgrade from the ElderShield scheme, and who doesn’t like an upgrade? In 2017’s National Day Rally, PM Lee pointed out that Singaporeans typically live till 82, with eight of those years spent in ill health. You might not need the extra cash now, but here are four reasons why your future self will be thankful for CareShield Life.

1. You get cash payouts for life

That’s right, there’s no cap to when, or how much you can receive from CareShield Life. You’ll get monthly payouts starting at $600. Of course, this is so long as you’re severely disabled. This means you are unable to perform three or more of the six activities of daily living (ADLs) which include: washing, dressing, feeding, toileting, mobility, and transferring. You’ll need to get a qualified healthcare worker such as a doctor, nurse, or physiotherapist to certify your disability status. You can do the first assessment for free, but if you are found to not need help with three ADLs and need to do a subsequent assessment, the cost will be born by you. However, if you are certified severely disabled in the subsequent assessment, the assessment fee will be reimbursed by CareShield Life.

2. Payouts increase over time

What goes up and never comes down? Nope, I’m not talking about a helium balloon, I’m talking about CareShield Life’s payouts. Monthly payouts start at $600 which increase at about 2% a year till you’re 67 or when you make a successful claim, whichever is earlier. The cash is yours to keep and spend however you’d like – no questions asked. The extra cash will come in especially handy if you need to stay in a nursing home or hire a domestic worker. It’ll help to combat any inflation so you can be assured you have the means to cope with additional expenses. Previously on the ElderShield Scheme, payouts were capped at $400 for 6 years.

3. You are guaranteed coverage

Everyone is going to be well taken care of, and no one is going to fall between the gaps. That means you’ll get coverage even if you are currently disabled, or have any pre-existing medical conditions. Also, you won’t lose coverage if you can’t pay for the premiums! The Government has subsidies in place to ensure you’ll get the help you need. There are three levels of permanent subsidies for CareShield Life: 30% subsidy if your household per capita monthly income is  $1,100 or less. 25% if it is between $1,101 and $1,800, and 20% if it is between $1,801 and $2,600.
In addition, there will be transitional subsidies in the first five years of the scheme that start at $70 in 2020, which goes down by $10 a year to $30 in 2024. Make sure you enrol in the scheme as early as possible, because those who join in 2020 will get the maximum transitional subsidy of $250!

4. Premiums are 100% payable by MediSave

You can pay your CareShield Life premiums using Medisave, but if you do not have enough in your MediSave, your family member can use the amounts in their MediSave account to pay for you. Vice-versa, you can use your MediSave to pay for your family member.
If that is not possible for you, the Government will conduct a means-testing. The outstanding amount will be paid by the Government if you are deemed eligible.

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Now back to CareShield Life, it is important to note that you will be automatically covered if you are born in 1980 or later when the scheme is launched. If you are born after 1990, you will be automatically covered when you turn 30.
If you are born in 1979 or earlier, you have the option of joining CareShield Life from mid-2021 if you are not severely disabled. However, you will be automatically covered if you not severely disabled, born between 1970 and 1979, and are enrolled in the ElderShield 400 scheme. If you wish to opt-out from CareShield Life, you have up till 31 December 2023 to do so and get your premiums refunded.
This period has more than ever shown us the fragility of life. As scary as it may seem, having a backup plan like CareShield Life is never a bad idea.

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