MOH launches new online tool for public to calculate CareShield Life premiums

SINGAPORE — Singaporeans and permanent residents born between 1946 and 1990 may now go online to calculate their estimated premiums and subsidies for CareShield Life, the government-run severe disability insurance scheme that will be launched in 2020.

The online calculator, launched by the Ministry of Health (MOH), is available at www.careshieldlife.sg/premiumcalculator. Users need to answer a few questions, such as their gender and per capita household income.

The estimated premiums displayed are for those who have been consistently on an ElderShield policy, or who are not covered by ElderShield, the ministry said on Thursday (Dec 27).

ElderShield is the scheme that will be replaced by CareShield Life, which will charge higher premiums but provide lifelong payouts for the severely disabled — unlike ElderShield’s cap of six years.

The calculator will provide estimates of premiums for the initial years of the scheme, from 2020 to 2025.

Those born in 1945 or earlier may call the Healthcare Hotline at 1800 222 3399 for more details on their estimated premiums, subsidies and incentives. Older cohorts will have to pay higher premiums as they have fewer years to spread over their premium payments.

Those born in 1991 or later will know the premiums they have to pay when they are enrolled in CareShield Life at the age of 30.

Those on less common ElderShield policy arrangements will find out their estimated premiums closer to 2021, when they are able to join the scheme. This group includes those who opted out of ElderShield at age 40 but who later rejoined. Others include those born between 1956 and 1967 who opted for a single premium payment term for ElderShield, and those who have a paid-up policy.

WHY IT MATTERS

CareShield Life is one of the ways in which the Government is preparing long-term care for an ageing population.

The MOH said that one in two healthy Singaporeans aged 65 could become severely disabled in their lifetime.

About three in 10 Singaporeans will live a decade or more after they become severely disabled. This means they are unable to perform three or more activities of daily living such as feeding, dressing and going to the toilet.

ElderShield pays out S$300 or S$400 a month to severely disabled policyholders, but CareShield Life’s payouts will start at S$600 a month and increase over time.

Unlike ElderShield, which is offered by three private insurers, CareShield Life will be government-run and will be compulsory. Citizens and permanent residents between the ages of 30 and 40 in 2020 will start paying premiums.

WHAT YOU NEED TO KNOW

CareShield Life premiums can be paid using Medisave from the Central Provident Fund.

Premiums start at S$206 a year for men and S$253 a year for women at the age of 30. They will make payments until the age of 67.

The Government will provide lower- to middle-income Singapore residents with means-tested subsidies. Up to two-thirds of resident households will be eligible for subsidies of up to 30 per cent.

Citizens born in 1980 or later will received transitional subsidies of up to S$250 spread over the first five years.

Citizens born in 1979 or earlier (existing cohorts) will receive participation incentives of up to S$2,500 spread over the first 10 years, if they join in the first two years from 2021.

Citizens in financial need who still cannot afford their premiums may apply for more support from the Government.

Here are some examples of estimated premiums provided by the MOH.

WHAT THEY ARE SAYING

“No Singaporean who joins CareShield Life will lose coverage due to an inability to pay their premiums,” the MOH said.

DO A DEEP DIVE

• Women will pay higher CareShield Life premiums as they will draw on claims longer with longer life span: Amy Khor
• MPs raise concerns over ElderShield premiums collected vs claims disbursed, criteria for ‘severe disability’
• ElderShield to be renamed CareShield Life with higher, lifetime payouts from 2020
• Higher lifetime CareShield Life payouts a big improvement but not a complete solution: Experts