Changes to Long Term Care

Dear Valued client,

What has Changed?

The Government has taken over the administration and management of the basic ElderShield policy from Private Insurers, ie NTUC, Great Eastern & Aviva from 1 November 2021.

Why has this changed?

The Government has revamped the Long Term Care insurance previously known as Eldershield to CareShieldLife (CSHL).

Eldershield basically pays out a monthly benefit ($300 or $400) when one is not able to perform 3 out 6 of the *ADLs persistently beyond 3 months in that condition, due to sickness or after an accident. Pay out will stop when patient’s conditions improve from 3 to 2 ADLs.

*ADLs (Activities of Daily Living) – Bathing, Toileting, Walking, Transferring, Feeding & Dressing.

How do the changes impact you?

The new CareShieldLife pays out S$600/month. They will increase annually until you turn 67 or when a claim is made, whichever is earlier. The rate of increase has been set at 2% per year until 2025. It will be reviewed after that. Premiums increase accordingly but are fully payable with your CPF Medisave Account.

What is recommended?

Eldershield 400 members will be notified in batches that they are auto-enrolled into the new CareShieldLife. Currently, those born in 1970 -1979 has been enrolled.

Members can choose to stay with Eldershield 400 and reject the auto enrolment.

For Eldershield 300 or those citizens who are not insured, they can sign up on their own for CareShieldLife if they are not currently disabled. Sign up at CareShield Life e-Service (available from 6 November 2021) with your Singpass.

For further information, check out:

https://www.careshieldlife.gov.sg/home.html

Material in this document is for education purposes only. It is distributed with the understanding that neither the authors nor the publisher are rendering legal, accounting, tax, investment, or other professional services by publishing this document. This document is not a substitute for the advice of your financial advisor, or any of your other advisors, personal or professional.