Advisable to opt out Eldershield or carry on with it?

[decibel.]

Hi is it recommended to keep Eldershield? If yes then which insurer is better? Is Eldershield for life?

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[lzydata]

Hi is it recommended to keep Eldershield?

I think long-term care insurance is a good thing to have, especially when it is government regulated and administered. Careshield would be even better than Eldershield - payouts are lifetime, not capped at 6 years, and increase over time.

If yes then which insurer is better?

Although the scheme is administered by Aviva, GE or NTUC Income, it is the same scheme with the same benefits, premiums etc. If you choose to buy additional coverage on top of Eldershield from those insurers, then there will be differences.

Is Eldershield for life?

Yes: "You are covered for life. Once you start paying premiums, you can make a claim at any age, should you suffer from severe disability. Even after your premium term is completed at age 65, you remain insured for life."

https://www.moh.gov.sg/careshieldlife/about-eldershield

 

[wutawa]

Hi is it recommended to keep Eldershield? If yes then which insurer is better? Is Eldershield for life?

Hope u r under eldershield. If u under careshield life, u r trapped and cant opt out.

Yes: "You are covered for life. Once you start paying premiums, you can make a claim at any age, should you suffer from severe disability. Even after your premium term is completed at age 65, you remain insured for life."

https://www.moh.gov.sg/careshieldlife/about-eldershield

Do note that the monthly payout is $400 for max 72 mths.

 

[BBCWatcher]

Hope u r under eldershield. If u under careshield life, u r trapped and cant opt out.

Practically everybody who has ElderShield now, such as decibel., won't be forced to switch to CareShield Life.

There are basically three cohorts:

1. If you were born before 1970, nothing much happens. If you have base ElderShield (no supplements), the government will start servicing your policy from mid-2021. You may be able to switch to CareShield Life, and you should seriously consider doing so. (CSL is better.)

2. If you were born sometime within the years 1970 to 1979, and if you have ElderShield 400, you will be automatically switched to CareShield Life in mid-2021. You should seriously consider sticking with the automatic switch, but you have until December 31, 2023, to switch back to ElderShield 400.

3. If you were born in 1980 or later, and if you are a Singaporean citizen or Singapore Permanent Resident, you will be required to participate in CareShield Life starting from your 30th birthday. Unlike MediShield Life, there is no participation exception for Singaporean citizens who are long-term residents of a foreign country.(*) However, also unlike MediShield Life, the CareShield Life benefits will be claimable outside Singapore.

If you were born in the first half of 1980 and join ElderShield 400 (which I think is allowed) then it's possible you'll effectively fall into cohort #2. Regardless, CareShield Life will be compulsory for you (if a citizen or PR).

If you were born in 1980 or later and don't want to participate in CareShield Life, then you'll have to terminate your Singaporean citizenship or Singapore Permanent Residence, as applicable, then cancel CSL. Financially that won't be a smart thing to do if you're "vested" or nearly vested.

(*) One could argue that Singapore will join the ranks of status-based (sometimes misleadingly called "citizenship-based") taxation countries from mid-2020 with the introduction of CareShield Life. I would make that argument, and I've made it before. Is a "compulsory premium" a tax? I don't see why it wouldn't be. For what it's worth, the U.S. Supreme Court didn't see any difference between a compulsory insurance premium paid to a private insurer and a tax. This compulsory premium is paid to the government.

 

[decibel.]

Thanks all for the inputs. I have no Eldershield yet. I'm in 30s. So does it mean I have careshield already? Am I able to check in the cpf website? Cos I heard from my friend when 40 y.o will enroll into Eldershield so if I have careshield now I won't have Eldershield?

I also have a life plan that covers tpd already though coverage not much. Only dependent is my mum.

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[BBCWatcher]

I have no Eldershield yet. I'm in 30s. So does it mean I have careshield already?

No. CareShield Life hasn't started yet for anybody. It'll start up for the first group later this year (mid-2020).

(Edited to correct: ) If you’re in your 30s then presumably you were born in 1980 or later. You’ll be in the first CareShield Life cohort from mid-2020, and it’ll be compulsory.

I also have a life plan that covers tpd already though coverage not much.

ElderShield and CareShield Life are both long-term care insurance for quite serious disability. Both programs provide coverage for life as long as you pay all the premiums. For disabled beneficiaries, ElderShield provides a time limited monthly payout, so it's possible to run out of ElderShield benefits and still be alive and disabled. (An extra cost ElderShield supplement can cure this problem.) However, CareShield Life provides payouts as long as the qualifying disability continues, for life. That's one of the major improvements in CSL.

The definition of minimum claimable disability that these ElderShield and CareShield Life policies use is an inability to perform (independently, for yourself) any 3 out of 6 "Activities of Daily Living" (ADLs). The 6 ADLs are: washing, feeding, dressing, toileting, mobility, and transferring. (One notable example of "transferring" is getting in and out of bed.) You have to be seriously disabled if you're unable to perform even 2 ADLs, but the minimum standard to qualify for benefits is an inability to perform 3 ADLs. (You can pay an extra premium to upgrade ElderShield coverage to a 2 out of 6 ADL definition. It's unclear yet whether there will be a similar upgrade option for CSL.)

"Total and Permanent Disability" insurance is, as the name suggests, insurance that pays a benefit when you're really seriously disabled. ElderShield and CareShield Life have a tough definition, but TPD is even tougher, broadly speaking. Also, if the TPD coverage is associated with term life insurance, then coverage ends when the term ends, such as at age 65.

Then there's Disability Income Insurance (DII), which defines disability as an inability to work, as certified by a medical practitioner. This definition is generally the least difficult to meet among these various policies. Do you have DII coverage? It's highly likely you should have it. This article explains it.

 

[wutawa]

@decibel.
Eldershield not applicable to u. Dun bother abt it.

 

[decibel.]

Ok thanks all. I'm born after 1980 so I guess CareShield is the next compulsory thing that I got no choice to opt out. Hopefully MA interest can cover the premium.

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[mummy1234]

Depends on yr financial situation.

 

[peppermint7]

Just to confirm. We are able to claim Careshield Life even after we stop payment at 65? Eg if something happens at 75. We can go ahead and submit claim? Sorry for my ignorance. so happen im looking for the answer browsing thru webs just now and how timely I come across this post

 

[boredboiboi]

Just to confirm. We are able to claim Careshield Life even after we stop payment at 65? Eg if something happens at 75. We can go ahead and submit claim? Sorry for my ignorance. so happen im looking for the answer browsing thru webs just now and how timely I come across this post

Yes. Payment till 65. But coverage is for life.

 

[tangent314]

From https://crms.moh.gov.sg/FAQ.aspx
Same will apply for Careshield Life

2. If ElderShield premiums are only payable until age 65, am I only covered until age 65?

If you complete your premium payment up to age 65, you will continue to be covered under ElderShield for life. You can make a claim at any age.

 

[peppermint7]

From https://crms.moh.gov.sg/FAQ.aspx
Same will apply for Careshield Life

2. If ElderShield premiums are only payable until age 65, am I only covered until age 65?

If you complete your premium payment up to age 65, you will continue to be covered under ElderShield for life. You can make a claim at any age.

Yes. Payment till 65. But coverage is for life.

Thank you so much! All along I have the misconception it only covers for disability that happen before 65yo but payment will goes on for life

I didn't know after stop payment it is still claimable for new claims that happens after 65

Thanks for the reply indeed

 

[maple96]

Just to confirm. We are able to claim Careshield Life even after we stop payment at 65? Eg if something happens at 75. We can go ahead and submit claim? Sorry for my ignorance. so happen im looking for the answer browsing thru webs just now and how timely I come across this post

Yes. Payment till 65. But coverage is for life.

From https://crms.moh.gov.sg/FAQ.aspx
Same will apply for Careshield Life

2. If ElderShield premiums are only payable until age 65, am I only covered until age 65?

If you complete your premium payment up to age 65, you will continue to be covered under ElderShield for life. You can make a claim at any age.

Thank you so much! All along I have the misconception it only covers for disability that happen before 65yo but payment will goes on for life

I didn't know after stop payment it is still claimable for new claims that happens after 65

Thanks for the reply indeed

Stop spreading fake news!

Eldershield premium is fixed and premium payment stops at 65 and u are covered for life!

Careshield Life premium increases by about 2% pa and premium payment stops at 67 and u are covered for life!

Payout is different for both, I reserve comments since it is not the fake news being spread here.

 

[boredboiboi]

Stop spreading fake news!

Eldershield premium is fixed and premium payment stops at 65 and u are covered for life!

Careshield Life premium increases by about 2% pa and premium payment stops at 67 and u are covered for life!

Payout is different for both, I reserve comments since it is not the fake news being spread here.

Yup payment age 67 for careshield, my bad. I read as eldershield as the topic was eldershield.