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.

• • 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