From 2020, all Singaporeans who are aged 30 to 40 will be automatically enrolled into the new CareShield Life, regardless of his health condition. It is a universal coverage, and so if he is disabled when he joins scheme, he will make a one-time premium payment, and will start collecting the payouts immediately. Those who are on the current ElderShield can opt to join the new CareShield Life, more information will be released by the government later.
To recap, these two schemes start payout once a person is severely disabled, that is, cannot perform 3 out of 6 daily activities of bathing, feeding, dressing, transferring, mobility and toileting.
The key differences between CareShield Life and Eldershield at a glance are as follows:-
|CareShield LIfe||ElderShield 400|
|$600 monthly payout for life, from year 2020||$400 monthly payout for 6 years|
|Monthly payout increases from year 2020, as long as you are still paying premium||$400 monthly payout is fixed|
|Premium payment from age 40 to 67||Premium payment from age 40 to 65|
|Premium increases over the years till age 67||Premium is fixed at the entry age|
Though the premium will increase over the years, medisave can be used fully to pay the premium for CareShield Life.
The CareShield Life is definitely a great improvement in term of payout amount and the coverage years. It also factors in inflation cost over the years. For the first 5 years, the government has decided to increase the payout at the rate of 2% per annum. The monthly payout will increase as you pay your higher premium each year, until you make a claim and stop paying premium or when you finish paying your premium at age 67.
More information can be found at https://www.moh.gov.sg/content/dam/moh_web/careshieldlife/index.html