What is Eldershield to you?
For the old?
Another “waste of money” program from medisave?

There’s been a lot of misconception about Eldershield. Take a minute or two to see if you can identify with the video below :

Before we give you the details of Eldershield, do try looking at Eldershield from a caregiver’s angle too…rather than what it would mean to the elderly only.

What is it?
This government initiated program is an insurance coverage designed not only for the elderly, but also to help those who become too physically challenged to manage their own everyday care (a 40 year old stroke victim is also entitled for this claim). Launched by the Ministry of Health in 2002, the plan provides a monthly cash payout that can be used for the many costs of daily care at home or in hospital. Currently, it’s open only to adults age 40 to 65 only.

Three independent insurers are currently providing coverage to all of the defined age group members with their Severe Disability Insurance. ElderShield classifies a person as severely challenged when they are consistently unable to perform at least 3 out of 6 of the following tasks, even with special equipment or constant assistance:

• Washing The ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash by other means.
• Dressing The ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical or medical appliances.
• Feeding The ability to feed oneself food after it has been prepared and made available.
• Toileting The ability to use the lavatory or manage bowel and bladder function through the use of protective undergarments or surgical appliances if appropriate.
• Mobility The ability to move indoors from room to room on level surfaces.
• Transferring The ability to move from a bed to an upright chair or wheelchair, and vice versa.

Individuals with pre-existing conditions may apply for ElderShield coverage, with approval subject to underwriting and other restrictions.
It is estimated that among the elderly, 1 in 12^ will eventually need constant specialised care due to severely disabling accident or illness. If it happened to you or a loved one, what would you do? With the cost of in-home and institutional care on the rise, even a brief disability can become very expensive. LONG TERM CARE coverage helps to cover some of these costs, providing the peace of mind which is required.
^ Source: 1999 Inter-ministerial committee on Health Care to the elderly.

Who Can Join?
Any CPF member with a Medisave account is automatically covered by ElderShield at age 40. No sign-up or medical assessment is required to join, and both Singaporeans and Permanent Residents are eligible. Eligible residents below age 65, or anyone who has previously declined the coverage, can complete and return the application form to make a new application for coverage. You can re-apply into the program by contacting this your insurance guy.
For adults who do not have a medisave account, children who have sufficient money in their medisave account, can make the payment for their parents to help them in their long term care preparation.

How Does it Work?
ElderShield provides payments to cover the costs of long-term care resulting from a severe disability. The program offers a monthly cash payout, up to $400, for a period of up to 72 months. The latest benefit expands ElderShield’s previous protection, which was limited to $300 per month for a term of 60 months.
Some may feel that the amount is too little or payout period too short. (learn how to maximize your eldershield benefits through supplementary plans with your medisave funds here!)

Severe Disability Insurance can help you cover the cost of care and recovery following a disability due to accident and illness. The Ministry of Health’s Long Term Care scheme, introduced in 2002, provides participants with this basic level of protection.
A severe disability due to accident and illness can happen to anyone at any age. The impact on you and your loved ones can be traumatic, especially as daily care costs continue to rise. If you were disabled tomorrow and unable to work, how would you survive?

Why should I buy this?–there’s no returns…
There’s only 2 plans the government allows the usage of medisave to finance the premiums, this is definitely 1 of them and on top of that, you are using the 4% interest given to you from medisave to finance this policy, so why not maximize this “freebie”? On top of that, the premiums do not increase once you “lock-in” at inception!

Since this site is all about protecting your nest egg, has it ever crossed your mind that you are also your own nest egg? If you protect your assets, then how come you do not protect the most important asset of them all?–YOURSELF?

To some, this medisave version of eldershield may not seem to be enough, that is why private insurers came up with supplementary plans like Aviva MyCare and NTUC Primeshield.

We shall not dwell too much into these supplementary plans here, else it will really bore you. The beauty about the plans is that you can use your medisave to fund the plan, so it’s technically “cashless”. To find out more, just contact us here.

This is published for general information only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person.

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