Adulting can be hard, but it’s very much a part of growth. As you add more years to your life, you only realise that age and experience helps you evolve, make memories with your loved ones, put things into perspective, and set and achieve life goals. But it’s not always going to be this rosy. Amidst the hustle-bustle of life don’t forget one crucial life goal– a long-term care scheme that provides basic financial support to you and your loves ones. One such care scheme that delivers on this promise is, CareShield Life.
Here are 5 things you really should know about CareShield Life.
1. My 30th birthday present – CareShield Life
Whether or not you’re in denial about becoming a full-blown adult when you turn 30, the government recognises you as one. Those who are born in 1980 or later will automatically be covered by CareShield Life when you turn 30. You can think of it as a 30th birthday present or a wakeup call to adulting!
CareShield Life is a long-term care scheme that provides basic financial support should Singaporeans become severely disabled and need personal and medical care for a prolonged duration.
Being a mandatory coverage for Singaporeans born in 1980 or later, your premiums are already deducted from your MediSave account. Plus, CareShield Life provides lifetime cash payouts should you become disabled.
2. Understanding how a disability is defined
This is where it gets a tad bit tricky because what happens in the event that you can’t perform just one or two of the ADLs? Technically, you aren’t disabled but it could cause serious disruption to your daily life. It might even affect your ability to work and earn income to support your long-term care costs.
What are the figures we are looking at?
Centre care services cost between S$400 and S$1500 a month¹ while Home-Based care services cost between S$700 and S$1000 a month².
In more severe cases where residential and long-term care services are required, we are looking at a cost of S$1,300 and S$2,300 a month³.
3. Disability doesn’t just happen to the old and long-term care is expensive
“But disability only happens to old people! Anyway, CareShield Life gives me coverage, so why worry?” Sounds familiar? If that’s what you’re thinking, you might want to think again.
Image courtesy: Stock Image
A closer look at the figures will show you that you face a potential shortfall. For example, if you require long-term care services, and you only receive an S$600 monthly payout, you can be in for a monthly shortfall of quite a bit. This, especially if your ability to earn income is affected!
Also, don’t assume that disability is a problem for the old. Statistics prove otherwise. 1 in 10 stroke patients are under the age of 504. In fact, the risk of stroke can multiply significantly from as young as 30 years of age5!
If any form of disability strikes, it’s highly likely that you will require long-term care and your basic payout will not be sufficient.
4. Long-term care can be affordable
Fret not, that’s what GREAT CareShield is for.
Great Eastern’s GREAT CareShield supplements your CareShield Life coverage with protection payouts to help you in the event of loss of income or to cover long-term care costs due to a disability. GREAT CareShield provides up to S$5,000 monthly payouts for moderate and severe disabilities – in addition to the CareShield Life’s starting monthly payouts of S$600 in 2020.
Key Benefits of GREAT CareShield:
- Up to S$15,000 payout upon occurrence of mild disability† with GREAT CareShield Advantage
- To enable you to have financial support to arrange for caregiving help, you will receive an Initial Benefit. It will provide a lump sum payout of 300 percent of the monthly benefit, once you are unable to perform any one of the ADLs
- For those under the Advantage Plan, the initial benefit may be payable again after full recovery from your disability (ie you are able to perform all ADLs) so you have continued reassurance of this benefit upon subsequent episodes of mild disability that is unrelated or not arising from the same cause
- Up to lifetime payouts for moderate disability†
- Receive monthly benefit payout starting as early as the inability to perform two ADLs
- The monthly benefit payout is in addition to your CareShield Life scheme payouts
- Premiums payable in part or full by MediSave
- You can choose to pay premiums by cash, your own MediSave funds or the MediSave funds of your family members
You know what they say–early bird catches the worm. It’s best that you get your cover early so you can lock-in lower premiums and have the peace of mind that you are covered.
It’s one of those things that you’ve just got to get done.
5. Use MediSave to further reduce cash outlay
Yes, the good news is you are allowed to use up to S$600 of your MediSave a year for supplements like GREAT CareShield. If you want more coverage, you can top up by cash so that allows you greater flexibility. How much of your MediSave you wish to use is of course entirely up to you.
Remember, when you get coverage under CareShield Life, long-term care costs can get higher than the basic payout you receive. So you can bridge the gap with GREAT CareShield.
To make it even lighter on your wallet, you can tap onto your MediSave and save the cash for rainy days.
Now that you have started adulting, you have to start thinking about your loved ones before yourself. The best thing you can do is to protect them from financial and emotional stress should disability strike.
In planning ahead, you are securing their well-being along with yours.
References:
- Cost range assumes daily attendance excluding weekends and does not include transport fee. Source: Agency for Integrated Care. “Introduction to Day Care”, www.aic.sg
- Cost range excludes one-time setup cost and insurance fees. Source: Active Global Specialised Caregivers. “Our Fees”, www.activeglobalcaregiver.sg
- Source: MoneySmart. “Nursing Homes in Singapore – How Much Does it Cost?”, http.blog.moneysmart.sg/family/nursing-homes-singapore/
- 22 Nov 2016. Linette Lai. The Straits Times. “1 in 10 stroke patients here aged under 50”.
- Jul 2009. Ministry of Health. “Stroke and Transient Ischaemic Attacks – MOH Clinical Practice Guidelines 2/2009”.
Footnotes & Disclaimers:
† Mild disability means your inability to perform one ADL and will require significant assistance from another person when carrying out the activity.
Moderate disability means your inability to perform two ADLs and will require significant assistance from another person when carrying out the activities.
Severe disability means your inability to perform at least three ADLs and will require significant assistance from another person when carrying out the activities.
GREAT CareShield is underwritten by The Great Eastern Life Assurance Company Limited. For more information, please visit: sg.gelife.co/gcstap
T&Cs apply. This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).