Enhanced ElderShield from Great Eastern

Finally, one of the three insurers, Great East­ern, has announed the enhanced plan for Eld­erShield, a long-term care insur­ance using medishield as pay­ment. Aviva and NTUC Income are yet to announced their enhanced plan which are sup­posed to be effect­ive in Septem­ber 2007.

The cur­rent Nation­al Eld­erShield plan pays $300 per month for 5 years. Under the new enhanced plan for GE, exist­ing poli­cy­hold­ers can

a) upgrade to GE’s ValuePlus 300 that pays $300 per month for 10 years. And the pay­out will be three times in the first month and again if death occurs with­in the 10 years;

b) switch to new scheme that pay­out $400 per month for 6 years by pay­ing a con­ver­sion fee; 

c) upgrade to GE’s ValuePlus 400 that pays $400 per month for 10 years. And the pay­out will be three times in the first month and again if death occurs with­in the 10 years. Exist­ing poli­cy­hold­ers will get one year’s free sub­scrip­tion for this upgrade;

d) add on GE’s Eld­erShield Com­pre­hens­ive. This plan offer the poli­cy­hold­er to choose the addi­tion­al amount of pay­outs of up to $3400 per month, in blocks of $100 for 10 years. the pay­out will be three times in the first month and again if death occurs with­in the 10 years.

How­ever, do note that poli­cy­hold­er can only use up to $600 per year to pay Eld­erShield. Hence, poli­cy­hold­er may have to use cash to make pay­ment for the enhance plan. Also, the premi­um for the enhanced scheme increases with age, unlike the basic Eld­erShield that charge a con­stant premi­um till age 65 years old.

One dis­ap­poin­ment for GE’s enhanced Eld­erShield is that that the cri­ter­ia for pay­out is still the same as the basic Eld­erShield. The per­son must be unable to per­form at least three of the daily activ­it­ies of daily liv­ing such as eat­ing, bathing, walk­ing, mov­ing from bed to chair and going to toi­let and dress­ing.

So let’s watch out the new enhanced from Aviva and NTUC Income and see who has ulti­mately a bet­ter offer.

Leave a Reply