AMTD PolicyPal If you’re a 30-something Singaporean, you might have received a booklet from the Ministry of Health explaining about the CareShield Life scheme you’re automatically enrolled in… and then promptly threw it away.
To be fair, a new disability insurance scheme doesn’t appear to matter all that much to a young, healthy person, at least not for now.
But, we’re going to go out on a limb and say that now is actually the best time to care about CareShield Life. Here’s why.
CareShield Life isn’t just about old age diseases. You can get payouts for temporary disabilities, too.
Let’s face it, CareShield Life suffers from an image problem. Doesn’t the very mention of this scheme make you think of an old man/woman on crutches or in a wheelchair?
This is probably a legacy left from CareShield’s predecessor, ElderShield. Although the government has renamed the scheme to shake off the age association, it’s going to take some time for Singaporeans to adapt.
In any case, let us set things straight: CareShield Life is not just for the elderly. It covers severe disabilities, which can happen at any age and for reasons other than diseases.
CareShield Life will pay out a disability income even if you are temporarily disabled due to an accident, not necessarily illness or old age.
For example, should you get seriously injured in a road accident and are bedridden for six months, you may qualify for CareShield Life payouts. The payouts will last as long as you are severely disabled, so you have an income stream while recovering.
Even if you’re in the prime of health, accidents may happen. Don’t let your dependents suffer in the event of your loss of income!
If you’re just starting to get insurance coverage, CareShield Life is an important part of your portfolio.
Singaporeans in their 30s go through a great deal of life events, such as getting married, starting a family, buying a home, and so on. It’s also when we start thinking about our insurance portfolios.
The new CareShield Life is actually a very important part of your portfolio. It’s crucial for young Singaporeans to understand this scheme and how it complements your existing insurance coverage.
Imagine you’re a 30-year-old Grab driver. You have the following:
- Health insurance (MediShield Life + Integrated Shield Plan)
- Personal accident insurance (since accidents happen in your line of work)
- Life insurance (to support your child if anything happens to you)
Unfortunately, you meet with a bad accident on the road and become severely disabled and unable to work for months. Here’s what happens:
First, your existing health insurance would cover your medical and hospitalisation bills. And, good thing you bought personal accident insurance because you also get a lump sum from it. The Personal Accident payout helps you tide your physiotherapy costs and living expenses for a while.
But, you are not able to claim anything from your life insurance as you are not disabled to the extent of TPD (total permanent disability). Even though you are unable to support your family, you will not get a payout from your life insurance plan.
That’s where CareShield Life comes in. If the accident has left you severely disabled, you’ll receive temporary payouts on top of your personal accident insurance. This helps to supplement your income stream and supports your family while you are recovering and rehabilitating at home.
Life is a whirlwind when you’re in your 30s. But don’t get too caught up — now is a good time to pause, take a breather, and plan your protection needs.
Did we mention that you can upgrade your CareShield Life and pay for it with your CPF?
All Singaporeans and PRs born in 1980 and after are auto-enrolled in the basic CareShield Life scheme.
But CareShield Life itself has extremely basic benefits. Should you become severely disabled, your monthly payout from this scheme would be a mere S$600/month in today’s dollars. (The payout amount increases every year to keep pace with inflation.)
Is that enough to help your family get by if you get into an accident? Probably not. In fact, we think the amount is unlikely to cover the entirety of your living expenses and home-based care even if you do not have dependents.
With that in mind, it’s definitely worth boosting your basic CareShield Life plan with an optional add-on Supplement from a private insurer. These are available through Aviva, Great Eastern and NTUC Income, and they can increase your payouts and add on fringe benefits.
And yes, you can use your MediSave to pay for CareShield Life Supplement plan premiums, too. This is capped at S$600 per year per person, and you can use it to pay your family’s premiums.
Think of CareShield Life + Supplements as additional financial protection without requiring you to compromise your cash flow.
TL;DR: You’re definitely not too young to care about CareShield Life.
We hope this article has convinced you of the importance of CareShield Life and helped you understand why disability income coverage can benefit you and your family.
Severe disability can happen to anyone — it doesn’t matter if you’re young or old — and the risk only goes up if you happen to be working in certain occupations or have a high-risk lifestyle.
Adding on the option of increasing your benefits and payouts with Supplement plans, you’ll realise that CareShield Life matters as much to someone in their 30s as with someone in their 60s. Take the next steps and learn how CareShield can protect your family.
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Disclaimer: Protected up to specified limits by SDIC. This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that is not suitable for you may impact your ability to finance your future financial needs. If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.
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