Planning for Long Term Care: Understanding CareShield Life and its Supplement
- Derrick Lee
- Oct 9, 2022
- 2 min read
Updated: May 8, 2023
Why the concern on long term care?
As we age, the likelihood of becoming severely disabled increases. In fact, it's estimated that 1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime and may need long-term care. This can arise due to a range of factors, from stroke and cancer to dementia and accidents.
Careshield Life
While it's important to plan early for our long-term care needs, the uncertain cost of long-term care can make it difficult to know how much to save. That's where insurance schemes like CareShield Life come in. CareShield Life is a long-term care insurance scheme that provides basic financial support should you become severely disabled and need personal and medical care for a prolonged duration.
Currently, CareShield Life payouts start at $600/month for claimants in 2020 and increase at 2% per annum. However, many people wonder if $600/month is enough to cover the cost of long-term care, which can include everything from caregiver expenses and mobility equipment to daily living expenses and medical fees and/or equipment.
According to a study conducted in 2018, those who are severely disabled might need an average of $2,324 a month. Assuming that working is not possible after severe disability and you only have CareShield Life, you'll need to dig into your savings for over $1,700 a month for your long-term care expenses.
Even if you lead a healthy lifestyle today, life is uncertain, and disability can happen to anyone, at any age. That’s where a CareShield Life supplement from a private insurer comes in handy!
And the good news is, getting your Careshield Life Supplement can be within the $600 annual withdrawal limit from your CPF Medisave! This means ZERO CASH outlay!
How does a Careshield Life Supplement help you?
1.Lifetime Monthly Benefit
Get more monthly payouts on top of basic severe disability payouts from the government, for as long as you’re severely disabled.
2.Lumpsum Benefit
When you're severely disabled, this can help with one-time costs, such as in the purchase of a wheelchair.
3. Dependent Care & Caregiver Relief Benefit
If you're severely disabled, get additional payouts if you have children under 22, to help cover caregiver costs, and to support your dependants when you die.
4. Waiver of future premiums
Stop paying your premiums but remain covered when you have a mild disability, meaning you are unable to perform at least one Activity of Daily Living (ADL).
Enjoy 20% lifetime premium discount
Enhance your CareShield Life coverage with a CareShield Life Supplement plan to enjoy 20% lifetime premium discount!
Don't let the uncertainty of long term care costs keep you from planning ahead. Consider CareShield Life Supplement as part of your long-term care strategy.
To find out more on how a Careshield Life Supplement plan can help you and get your free quote, feel free to contact me for a non-obligation discussion.
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