Enhancements to ElderShield scheme

Long-Term-Care-at-home

Some of you might have heard – our national long term care insurance scheme, ElderShield, will be enhanced and renamed as CareShield Life. This is a good move as Singapore’s population is rapidly aging with shrinking family sizes, hence a declining old-age support ratio.

To be launched in 2020, some of its key points are below:

  • CareShield Life will be universal for all future cohorts of Singapore citizens and Permanent Residents, starting from age 30 and including those with pre-existing disability.

 

  • Higher and lifetime payouts, as long as the insured remains severely disabled (i.e. unable to perform 3 out of 6 Activities of Daily Living, also known as ADLs). Payouts start from $600 per month, and will increase overtime as premiums are paid.

 

  • The government will provide premium subsidies and financial support for CareShield Life.

Since the news was announced, here are some FAQs that I have met with and the respective answers:

 

1. What will happen to existing ElderShield (ESH) policyholders before CareShield Life is launched?

They will continue to be covered and enjoy the benefits under the current ESH policy as long as premiums are paid. No action is required in the meantime. Similarly for policyholders of ESH Supplementary Plans, they will continue to be covered.

 

2. Will universal coverage be extended to existing ESH policyholders?

Existing ESH policyholders will be given the option to join CareShield Life from 2021, pending further details form the Government.

 

3. Should I buy the current ESH Supplementary Plans before CareShield Life is launched?

If you have a need for long term care above the current ESH coverage, you should consider enhancing your coverage with ESH Supplementary plans.

 

Long term care, whether in the form of home care or nursing homes, can incur huge expenses in the long run. Such expenses however, are not covered by the usual hospital & surgical insurance most people have. For more information, I have written a separate article on how to cope with long term care.

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Importance of Overseas Medical Coverage

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There is an essential aspect of Medical Insurance which some of you may not know – having overseas coverage. To illustrate the importance of it, below is the story of my colleagues’ client.

She is a 9 years old girl, who was diagnosed with Brain Cancer in 2014. After 2 weeks of treatment, her doctors gave up as the healthcare industry in Singapore does not have the necessary type of cancer treatment – Proton Chemotherapy.

Her parents sought advice from her doctors as to where their daughter could go internationally, in order to undergo Proton Chemotherapy. Doctors told them the nearest country with this treatment is South Korea, which is also the cheapest. Although she was unable to walk and had to move around in a wheelchair, the girl’s parents decided to bring her to South Korea.

After the treatment was done, she responded well and returned to Singapore, able to walk again. After follow-up Chemotherapy in Singapore, her cancer is now in remission.

Her parents and financial planner filed a claim for the medical bills incurred in South Korea, amounting to $110,000. Thankfully, their insurer paid for it, as the girl’s Hospital & Surgical plan covers overseas hospitalisation and treatment costs.

Many of us may feel that since Singapore is a very developed country, we should have all forms of healthcare. But this little girl’s story shows us that the opposite is true.

There are definitely more cases of patients being advised to seek treatment outside Singapore. So do check if your Hospital & Surgical Plan covers you for overseas treatment.

4 Life Insurance Myths Debunked

Life-Insurance

Do you have a contingency plan that can protect your family just in case something bad happens to you? Assuming you are the main income earner in your family, it will be difficult for your loved ones to pay for school, food and other amenities in the event you pass away. Let’s be honest, it’s a rather scary thought. If you don’t have life insurance ready, you could be leaving your family in serious financial distress. Having life insurance can help support your loved ones.

However, if you’re not familiar with life insurance policies, it can be difficult to distinguish what is true about life insurance and what is a myth. To help clear up confusion, here are some common myths about life insurance.

Life insurance is too expensive

To the uninformed, life insurance can seem costly, but this is one myth that can be debunked. The cost of a life insurance policy varies, as it depends on several factors such as your entry age and medical history. Life insurance costs less than what most people think. Depending on your situation, you can tailor your insurance and lessen your costs drastically. Keep in mind that insurance is cheaper when you’re young, as you get older, premium prices become higher.

If your employer provides coverage, it’s enough

While many companies do provide employees with life and health insurance, this benefit only lasts as long as you are still employed under that company. While you’ll be covered, this coverage is only temporary and the benefit that is put into your insurance policy isn’t much. Furthermore, the policyholder in this case is your employer which means they reserve the right to amend the terms of coverage with their chosen insurer. This leaves you with uncertain coverage.

It’s advisable to separately apply for your personal life insurance plan to ensure that your family will be able to receive additional funding long after you are no longer able to provide for them. Additionally, you’ll have peace of mind knowing that your loved ones have a reliable means of obtaining funds in the future.

Life insurance is only for those who have children

If you’re not married and don’t have any children, it’s still important to seriously consider getting life insurance. Keep in mind that you still have dependents—your parents or siblings, for example, could from life insurance, as it can still cover other costs such as funeral expenses, unpaid bills and debts. If you were to unexpectedly pass away without a life insurance plan, your loved ones will be left to pay for these costs. So, even if you’re single, do consider obtaining life insurance as early as possible.

My health condition can exclude me from getting life insurance

Even if you have health conditions you can still have life insurance, although you may need to purchase a policy with lower coverage limits. Essentially, life insurance isn’t restricted to people of a certain age, health or even salary. You can always adjust your policy based on all these factors. There are plenty of insurance options that can suit your needs and budget.

These are just some of the many myths about life insurance which can make it difficult for people to fully understand and appreciate it. This often leads to confusion for some people on whether they need insurance or not. While the idea of having life insurance seems intimidating, doing so will bring plenty of benefits for your loved ones.