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.