A shiny new policy, CareShield Life, has suddenly been delivered to you. Whether you like it or not, you cannot avoid it since it is compulsory.
So what we can do now is to see how it can integrate and further improve on our current financial planning.
First and foremost, let’s understand what Careshield Life is.
CareShield Life is a long-term care insurance which provides financial protection against long-term care costs of Singaporeans in the event of severe disability. CareShield Life will provide you with better protection and assurance for basic long-term care needs with:
1. Lifetime cash payouts, for as long as the insured remain severely disabled;
2. Increasing monthly payouts, starting at $600/month in 2020 and increases annually until age 67 or when a successful claim is made, whichever is earlier;
3. Government subsidies to make it affordable, with no one losing coverage if they cannot pay premiums;
4. Premiums can be fully paid by MediSave.
If you are a Singapore Citizen or Permanent Resident born in 1980 or later, you will be automatically covered on 1 October 2020 or when you turn 30, even if you have any pre-existing conditions or are severely disabled.
Is CareShield Life mandatory?
CareShield Life will be universal and mandatory for you if you are a Singapore Citizen or Permanent Resident born in 1980 or later. This will ensure that all Singaporeans, including those who are more vulnerable such as the lower-income group and those with pre-existing severe disabilities, have basic protection for long-term care needs.
A universal scheme allows those with pre-existing disabilities, who will otherwise not be able to enjoy coverage, to be included.
Why should I upgrade my Careshield Life?
With the increasing cost of living in Singapore, the monthly payout in the event of severe disability may not be sufficient for our daily expenses. As much as we wish to protect ourselves in the event we are not able to fulfill 3 out of the 6 Activities of Daily Livings (ADLs), we also wish to have added peace of mind for our family so that we do not burden them financially. You may use up to $600 medisave per year for the upgrade to get additional monthly payout of up to $2000 or more.
When should I upgrade my Careshield Life?
The earliest you hit 30 years old! There are many benefits to enhance your benefits as soon as you are eligible. If you are healthy, you would be able to enjoy the full coverage at standard terms. There is also a lesser chance of being rejected by the insurance companies.
You get to enjoy the highest benefit payout with your premium paid as the premium will be based on your entry age.
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Should you wish to find out more about the Careshield Life enhancement from various companies, feel free to reach out to me for a comprehensive comparison of premiums and benefits.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Being a Financial Adviser has been an enriching and fulfilling journey as I help my clients reach their financial goals with proper planning. Meeting people from different backgrounds and turning them from clients to friends keep me inspired to do what I do. With the trust and support of my clients, I am able to help them reach their personal goals with tailored financial solutions. You can be assured of personalised high-quality service from me as I, together with Financial Alliance, support you in your life journey, and perform my role in a transparent, professional and enterprising manner.
