Understanding ElderShield

malay couple garden

23 Oct 2018 | 2 min. read

ElderShield is a long-term care insurance plan. Find out more about how it works and when it pays out.

Key takeaways

  • Eldershield is an auto-enrolment plan.
  • You are covered for life and can make a claim at any age, should you suffer from severe disability.
  • If the number of activities you cannot perform falls below the minimum specified, you will stop receiving the benefits.

What is ElderShield?

ElderShield is a national severe disability insurance plan that helps you with your long-term care needs.

Singapore citizens and permanent residents with MediSave accounts are automatically enrolled for this plan when they turn 40 years old. Although ElderShield is an opt-out scheme, read on to see why it makes more sense to stay on this plan.

CareShield Life will replace ElderShield in 2020. Singaporeans will be automatically included in the scheme.

Key features

ElderShield has the following features:

Monthly cash payout in the event of severe disability

Severe disability is defined as when a person cannot perform 3 out of 6 Activities of Daily Living (ADL) on their own. The 6 activities are bathing, dressing, feeding, going to the toilet, moving around and transferring.

ElderShield policyholders have one of these basic ElderShield plans:

If you joined after Sep 2007 If you joined between Sep 2002 and Aug 2007
Plan ElderShield400 ElderShield300
Monthly payout amount $400 $300
Payout duration Up to 72 months (6 years) Up to 60 months (5 years)

The cover is for life

Once you start paying premiums, you can make a claim at any age if you have a severe disability. Even after your premium term ends at age 65, you remain insured for the rest of your life.

Use MediSave to pay the premiums

You can either use your own MediSave or your family members’ MediSave to pay for your premiums.

Pay until you turn 65

Your premium amount is set at the age of entry and does not increase with age. Premiums are payable annually until you reach 65 years old or when you make a claim.

Why you shouldn't opt out of ElderShield

You can use MediSave to pay for the premiums from age 40 to 65. Premiums stop at age 65, but your coverage will continue for life.

Old age can bring with it health-related issues. According to the Ministry of Health, 1 in 2 Singaporeans who are healthy at the age of 65 is at risk of having a long-term disability over their lifetime. It's wiser to continue with ElderShield.

Find out more about ElderShield.

ElderShield Supplements (optional)

If you want higher severe disability insurance coverage (e.g. higher payouts and/or payout periods beyond 72 months), you can consider buying ElderShield Supplements from the appointed private insurers. You must have basic ElderShield before you can buy ElderShield Supplements.

Key features:

  • Can be purchased on top of the basic ElderShield.
  • Offers higher monthly payouts or payouts for a longer period or a combination of both.
  • Managed by a private insurer.
  • Premiums can be paid using MediSave (up to a limit of $600 per year per person insured).

Last updated on 07 Nov 2018