SINGAPORE: The Government has accepted recommendations made by a committee that reviewed long-term care insurance scheme targeted at severe disability, ElderShield. Here is what you should know about the enhanced scheme, to be called CareShield Life.
1) It is an enhanced version of ElderShield, a long-term severe disability insurance scheme, and is only available to those born in 1980 and after. MOH plans to implement the plan in 2020.
2) The scheme will include those with pre-existing severe disabilities, and start at the age of 30 instead of 40 under ElderShield. It will be compulsory, unlike ElderShield, which allowed opt-outs.
3) Severely disabled policyholders under CareShield Life will get payouts for their whole lives. The payout will be at least S$600 a month. The potential payout will increase over time, until the policyholder reaches the age of 67, or makes a successful claim. This will come with premiums that also increase over time.
4) The Government will provide three types of premium subsidies - permanent means-tested that will benefit up to two-thirds of households, transitional subsidies for Singaporeans for the first five years amounting to a total of S$250, and additional support for those who cannot afford the premiums even with the other subsidies.
5) The Government will administer CareShield Life, as opposed to private insurers. The cost of the first disability assessment will be waived regardless of outcome. Other than accredited General Practitioners, there will also be additional healthcare professionals who will be able to make the assessment.
6) Existing ElderShield policyholders can join CareShield Life from 2021. The Government will develop measures and incentives, including permanent means-tested subsidies and premium support to encourage this.