Sunday, May 27, 2018

ElderShield Revamp - 10 Things You Need To Know

ElderShield, Singapore's national long term care insurance is set to be overhauled in 2020. Currently, Singapore Citizens and Permanent Residents can opt in to the Eldershield scheme when they reach 40 years old and it is administered by 3 of the selected private insurers : Aviva, Great Eastern and NTUC Income.  

Come 2020, things will change and here are the 10 things that you need to know about Eldershield revamp:

1. New Name - It will be renamed as CareShield Life

2. New entry age : 30 years old (as opposed to current 40 years old)

3. It will be compulsory (as opposed to current opt out approach)

4. Claim payout is increased to at least $600 per month (as opposed to current $400 per month). The benefit will also go up 2% per year for the first 5 years of implementation. 

5. Claim period will be lifetime (as opposed to current 6 years). 

6. Existing Eldershield holder (or those who opt out after reaching their eligibility age) can opt-in from 2021.

7. Premium is expected to increase and the premium payment period will be from age 30 to 67 (up from current age 40 to 65), more details will be provided by MOH in the second half of the year. 

8. Premium subsidies will be provided for the first 5 years.  

9. The government will take back the administration of CareShield Life.

10. Private insurers are expected to continue to provide the enhanced layer of the CareShield Life in the future, some fine-tuning and alignment of their benefits/premiums are to be expected. 

What is your view of this upcoming Eldershield revamp?


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