What is ElderShield and how does it affect me?

While most Singaporeans are familiar with Medishield Life, ElderShield is less commonly known and understood.

Many people often ask me, “What exactly does ElderShield cover and do I need it?”

This post will answer your common questions about ElderShield.

* with effect from 1st Oct 2020, Careshield Life is launched to replace the Eldershield scheme and mandatory for all Singaporeans and PRs born in 1980 or later.  Existing ElderShield 400 policyholders who were born in 1970 to 1979 will also be automatically enrolled under Careshield Life. To read more about Careshield Life, click here

What is ElderShield?

An insurance scheme to help people who become severely disabled to cope with the financial demands of a disability. It provides a monthly cash payout if one is unable to perform any 3 out of the following 6 activities of daily living.

Activities of Daily Living (Source: MOH)
    • Provides a monthly cash payout of $300/$400 that can be used to cover the cost of long term care e.g the daily care at home or in hospital, home modifications and special aids or equipments, etc

    • Payout last up to 5 yr (for the $300/mth plan) or 6 yrs (for the $400/mth plan)

    • An opt-out scheme i.e you will be automatically included in the scheme once you reach 40 yrs old unless you apply to opt out

 

Do I need ElderShield?

Some people may wonder “Why do I need ElderShield when I already have life insurance plans that pays me a lump sum of money upon total permanent disability (TPD)?”

Did you know that your TPD or disability insurance coverage will only last til age 65-70?

ElderShield is designed to provide financial support for long term care, especially if the disability occurs beyond age 65.

As our society ages, the issue of long-term care becomes an ever- more pressing concern for many people. Illness-induced disability like stroke and severe arthritis and cognitive impairment like Alzheimer’s Disease can severely impact one’s ability to perform daily activities.

According to MOH, 1 in 2 healthy Singaporeans at age 65 could become severely disabled by the end of their lives. 

Long term care can be lengthy and expensive. In a month, medicine can take up $400 and private nursing home costs as much as $1,000 -$4,000. Employing a foreign maid will set you back easily by $800 or more, not to mention home aid equipment costs.

The monthly payout by ElderShield can help offset part of such costs and relieve the burden of the family members. Moreover, the premiums are payable by Medisave (can be deducted from Medisave accounts of yourself, your spouse, children or grandchildren) and will not affect your monthly cashflow.

But..is ElderShield enough?

ElderShield 400 provides a maximum of $400/mth for up to 6 years.

With $400/mth, your family members would still have to fork out a sizable amount each month for the remaining cost. And what happens if the disability lasts longer than that?  My grandma suffered a stroke and was bed ridden for 10 years and those last 10 years were really a financial strain for my mother and her siblings.

Thankfully, there are ElderShield supplement plans available to increase the monthly payout from $400 to $1000, $2000 or even up to $3500, and to extend the payout duration to a lifetime.

Best of all, you can increase your ElderShield benefits without forking out cash. Up to $600/yr from your Medisave (or spouse, children or grandchildren) can be used to pay for the supplement plans.

Alternatively, you can also upgrade your basic Eldershield to Careshield Life which provides a lifetime payout and higher monthly payout starting from $600 and increases over time.

Benefits of ElderShield supplements

  • Higher cash payout
  • Lifetime payout
  • Lump sum payout upon initial disability
  • Other additional benefits e.g Dependent care benefit, Rehabilitation benefit, and one time Get well benefit

Do I need to upgrade my ElderShield now?

You may be thinking “I can wait till I’m older before I get the ElderShield supplement”. If so, think again.

Long Term Care is not restricted to the aged

According to Singlife claim statistics, 70 per cent of the ElderShield claims were below the age of 55. Most of those who make claims are men with stroke (44 per cent) and cancer (22 per cent).

As much as we all hope to remain healthy in our senior years, the unexpected can happen, and the associated costs of severe disability are high.

With rising inflation, the cost of living in Singapore is going to be even higher for our children’s generation. Prolonged medical and disability care can be a heavy financial burden for our children to bear.

Premiums for ElderShield and its supplements are fixed based on entry age. So the younger you are, the lower the premiums. For the same premium, you can get a higher coverage if you apply at a younger age.

So do get your ElderShield upgrade as soon as possible and secure a higher monthly cash payout at affordable premiums. 

To find out more about ElderShield and the supplements options, feel free to contact me

To Your Success and Happiness,
Yonghui
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7 thoughts on “What is ElderShield and how does it affect me?

  1. Interesting post with useful information. I love it. Keep up the good work.

  2. Yes this is a great scheme.

    I have just one question. I am 49 years old and I have decided to upgrade my Eldershield . I am an active person and very health concious.

    Is the monthly payout enforced even if I do not have disabilties after I am 65 years old?

    1. Hi Naren, it’s good to hear that you maintain a healthy and active lifestyle and have plans to upgrade your Eldershield plan while young and healthy.
      Yes, both the Eldershield and Eldershield supplements provide lifetime coverage, meaning the monthly payout will be enforced (as long as there is inability to perform 3 out of 6 ADLS) up to a lifetime, even after age 65. Hope the above clarifies.

  3. I am 40 years old and had just signed up for the aviva eldershield plan 2 mths ago. If I would like to upgrade to my aviva care plus. Hw do I go about it or shd I wait till the next anniversary whn aviva send me an invitation to upgrade?

    1. Hi Jen,

      You can apply for the upgrade anytime, it’s not necessary to wait for your next anniversary.

  4. Hi Yong Hui,

    My mum is 60 years old this year and she has her Eldershield and Mycare supplement plan in place since this year (2013). I saw the following statement in the straits times article link above.

    “The higher monthly cash payout is up to $3,500 and includes the basic ElderShield benefit. Premiums are payable either for a lifetime or until age 65, subject to a minimum payment term of 20 years.” (What does this mean?, could you help to clarify?)

    I would like to ask since now she is covered under Eldershield + Mycare, she will need to stay on with the plans for at least 20 years? Can she opt out any time she like?

    Regards,
    Vincent

    1. Hi Vincent,

      The basic Eldershield benefit is $400/mth for 6 years and the Mycare cash payout includes that benefit.
      For example, say your mum’s plan provides a monthly cash payout of $1000/mth, this means that for the first 6 years, $400 will come from Eldershield and $600 comes from Mycare. After the 6th year when there is no more payout from Eldershield, Mycare will pay out $1000/mth.

      The second part of the statement refers to the Mycare’s premium payment term i.e how long one needs to continue paying premiums.
      Mycare has 2 options – i) pay for a lifetime or ii) pay for a limited period. For the limited period, it is a minimum of 20yrs or til age 65, and this depends on the age at which one starts the plan. For example, someone who starts the plan at age 40 would have to pay til age 65 whereas someone who starts at age 60 would have to pay for a min of 20 yrs, i.e til age 80.
      Depending on the option selected for your mum’s Mycare plan, that would determine how long she needs to pay the premiums for.

      As for your second question, your mum can opt out any time but the coverage will end once she opts out. Another option is to convert it into a paid up plan whereby her coverage will be reduced to a lower value but she will no longer need to continue paying premiums.

      Hope the above helps to clarify. Feel free to contact me if you have further questions

      Cheers,
      Yong Hui

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