What's the Care in CareShield Life? And why it has become an insurance plan every Singaporean needs.

CareShield Life is a long-term care insurance scheme that provides basic financial support should Singaporeans become severely disabled, especially during old age, and need personal and medical care for a prolonged duration.

It is an improved version of the former ElderShield scheme and will provide greater coverage for policyholders. For example, CareShield Life payouts are significantly higher than those under ElderShield, and coverage is expanded to all Singapore citizens regardless of age or health status.

CareShield Life also offers lifelong protection, so you can be assured of financial security even if you develop a critical illness or become severely disabled later in life.

What is CareShield Life, and how does it compare to ElderShield and MediShield

It can get confusing with so many different "Shield" schemes in Singapore.

So, here's an overview of the key differences to take note of:

MediShield Life is a basic health insurance scheme that helps pay for your hospitalisation expenses and selected outpatient treatments. It also covers pre-existing conditions, so you can be assured of financial protection even if you develop a critical illness later in life.

Eldershield is a basic long-term care insurance scheme that provides limited financial support should Singaporeans become severely disabled, especially during old age, and need personal and medical care for a prolonged duration.

CareShield is a revised and enhanced version of ElderShield with lifetime payouts starting at $600 monthly.

All 3 schemes have their own enhancements provided by the private insurers. These enhancements are payable via MediSave up to a limit.

Who is eligible for CareShield Life

Singaporeans born in 1980 or later:

• You are automatically covered under CareShield Life from 1 October 2020 or when you turn 30, whichever is later. You will receive a letter about 2 months before your 30th birthday.

Singaporeans born in 1979 or earlier:

• Participation is optional.

• If you are born between 1970 and 1979, insured under ElderShield 400, and not severely disabled, you will be automatically enrolled into CareShield Life from 1 December 2021. No action is required if you wish to join CareShield Life. You will receive a CareShield Life welcome package, which provides more information on your CareShield Life coverage and personalised premiums. If you do not wish to remain on CareShield Life, you can opt out by 31 December 2023.

• If you are not automatically enrolled and wish to join CareShield Life, you may access the Application to join CareShield Life e-Service with your Singpass.

What are the benefits of CareShield Life?

1. Lifetime Monthly cash payouts: If you become severely disabled, you will receive monthly cash payouts for as long as you remain severely disabled.

2. The payout amount will increase yearly until age 67 or when a successful claim is made, whichever is earlier. After that, your monthly payout amount will remain fixed for the duration of your severe disability.

3. Improved coverage: CareShield Life covers all Singapore citizens regardless of age or health status. It also offers lifelong protection, so you can be assured of financial security even if you develop a critical illness or become severely disabled later in life.

4. Coverage is worldwide: You will remain covered, make a claim, and receive payouts regardless of where you reside.

What are the limitations of CareShield Life?

1. 3 out of 6 ADLs: To make a claim, you must be severely disabled and unable to perform 3 out of 6 Activities of Daily Living (ADL) such as washing, dressing, walking, feeding, transferring and toileting.

2. $600 Starting Payout: While the payouts will increase annually, the starting amount may be considered low for many Singaporeans, given the current living standards.

Is CareShield Life worth it?

Ultimately, CareShield Life is a compulsory scheme for all Singaporeans born in 1980 or later. But unlike ElderShield, which was administered by private insurers, CareShield Life is administered by the Singapore government.

What does that mean for you?

The government will pay out your claims, not an insurance company!

It also means that premiums are cheaper than similar coverage provided by private insurers for ElderShield. Plus, the payouts for CareShield Life are for life compared to the full 72 months of ElderShield.

CareShield Life also has a vital role to play in complementing MediShield Life.

MediShield Life covers you for hospitalisation expenses, while CareShield Life pays you a monthly cash benefit if you cannot perform activities of daily living (ADLs).

The two schemes work together to give you and your loved ones greater peace of mind, knowing that you are better protected financially should you face a prolonged period of poor health.