Have you ever thought about how your old age days will be? Will your body be able to perform daily activities at that time? Will you have enough funds to spend on keeping your health in a good condition? And, will someone be there to extend a hand?
When you are young you might not understand the seriousness of the above-mentioned questions. But it is the harsh reality of the world that you cannot stay young and active forever. With time and increasing age, you will lose your energy and ability to perform different tasks. The human body gets weaker over time, and sometimes, you may fall for different diseases or even disabilities, especially in old age. And once you get disabled, you may fail to perform different things, which could be a big problem for you. Therefore, you must be prepared in advance to face discomforts and ways to tackle them without disturbing anyone.
Here are some stats supporting our statements:
According to the studies:
- 15% (around 1 billion individuals) of the world population live with one or more disabling conditions.
- Over 46% (around 250 million) of old people (ones who aged 60 and above 60) worldwide suffer from disabilities. Generally, they have moderate to severe disabilities.
Considering these facts and the universal truth that aging and disability are connected to each other. The questions we have had asked you, in the beginning, connect well now!
Now, the question is how to prepare in advance to deal with your aging. Well, Eldershield (a severe disability insurance scheme) is there for you.
Let’s talk about Eldershield in more detail.
What is Eldershield?
Eldershield is an affordable severe disability insurance scheme that provides basic financial security to people for long-term care, especially during their old age. It provides a certain monthly cash payout to severely-disabled people for managing their out-of-pocket expenses, including medical expenses. Mainly, it provides two different types of monthly cash payout plans that are:
Monthly Cash Payout Plans
Eldershield 300- This monthly cash payout default plan is for those who had joined Eldershield between Sept 2002 and Aug 2007. In this plan, the severely-disabled people get a monthly cash payout of $300 for five years (up to 60 months) after the claim.
Eldershield 400- This monthly cash payout default plan is for those who had joined Eldershield after September 2007. In this plan, the severely-disabled people get a monthly cash payout of $400 for six years (up to 720 months) after the claim.
What Does Severe Disability Mean?
As defined in Annex A, in context to Eldershield, severe disability refers to the inability to perform at least three of the following daily activities:
- Bathing or Washing
How to Join the Eldershield Severe Disability Scheme?
The Eldershield severe disability insurance scheme is especially for Singapore citizens and Permanent Residents of Singapore (PRs). If you are one of those, you don’t need to sign up or do a medical assessment to join this severe disability insurance scheme as you will be covered under this scheme by default as you will enter the age of 40. However, you must have Medisave accounts to join Eldershield.
The Singapore citizens and Permanent Residents of Singapore (PRs) who are below age 65, and are not a part of the auto-coverage scheme, can apply for Eldershield if they want. But to join this scheme, they will have to undergo a medical assessment process.
How to Opt-Out of Your Name From Eldershield?
In case, if you don’t want to join Eldershield, you can opt-out of your name by completing an opt-out application form. But remember one thing, if you will want to join it again in the future after opting out of your name, you will have to undergo an Eldershield assessment (medical assessment) to check if you have any medical issues that can cause severe disability in the future. If the medical assessors find any medical issue in you, your application could be rejected and you can never take advantage of this scheme.
Eldershield premiums are paid annually. They are determined based on the age of the entry. The earlier you will join this scheme, the lower your annual premium amount will be. And the best thing about Eldershield premiums is that they don’t increase over time.
- The minimum amount of premium for Eldershield 300 for males is 151.67 and for females is 194.26 (at the age of 40).
- The minimum amount of premium for Eldershield 400 for males is 174.96 and for females is 217.76 (at the age of 40).
The premiums are payable from the age of entry and till your 65th birthday. However, if you get into severe disability conditions before age of 65 and you claim for Eldershield, you will not be payable anymore for Eldershield premiums.
You can use your Medisave account to pay your annual premiums. Also, your family members such as parents, spouse, children, siblings, or grandchildren can use your Medisave account to pay your Eldershield annual premiums on your behalf.
In case, if you have insufficient funds in your Medisave account, you can top-up it via e-payment through the CPF e-cashier.
Claim for Eldershield Benefits
As an Eldershield policyholder who has paid the annual premiums, you are eligible to claim the benefits at any age for the rest of your life. This means, whether you met with severe disability in your 50s, 70s, or 90s, you will be eligible to claim the financial protection for long-term care. You will get the monthly cash payouts for five or six years, depending on your insurance plan.
To claim the benefits, you will have to fill the claim form and undergo an Eldershield assessment process that will be processed by an appointed assessor. The accessor will complete your medical assessment form and submit it to your insurer for further processing. You can also get a copy of the claim from your insurer’s website.
Those who want to have complete financial protection and want more than limited benefits for severe disability, Eldershield supplements are made for them. These are optional additional insurance coverage with additional benefits at additional annual premiums. You can spend on buying these supplements up to $ 600 per year, not more than that.
To buy Eldershield supplements, you must already be a policyholder of Eldershield severe disability insurance coverage.
What If You Have Pre-Existing Disability?
Several people have doubts about – if they have a pre-existing disability, will they be able to join Eldershield. And these doubts must be cleared.
Keeping it simple and straightforward, if you have a pre-existing disability, you may not be able to apply for Eldershield insurance coverage. In this case, you will need to fill the enclosed Health Declaration Form so that amount of premiums will not be deducted from your Medisave account.
What If You Already Have Medishield Coverage?
Medishield and Eldershield are two different medical insurance coverages. One is for hospitalization and the other one is for severe disability respectively. Several people ask when they have Medishield insurance coverage, then why do they need Eldershield.
Well, Eldershield complements the Medishield insurance coverage and it has long-term benefits. It gives you a monthly cash payout for a certain period of time, depending on your insurance plan. While it is not the same with Medishield. It only pays the expense for the hospitalization.
What About Annual Premiums When You Get Severely Disabled?
If you become severely disabled, your annual premiums for Eldershield will be automatically waived and the monthly cash payouts will start.
However, if you recover from your severe disability, the monthly cash payouts will stop and you will have to continue paying the annual premiums till your 65th birthday to be entitled to your remaining monthly cash payouts.
In case, if you received the maximum monthly cash payouts as per your plan, your insurance policy will be discontinued. And of course, you will not be entitled to further annual premiums.
Why Should You Join Eldershield?
Everyone needs financial support for old age. And for that, everyone saves funds. But bank savings are never sufficient to financially protect yourself from your old age. Therefore, it is important to invest in a reliable severe disability insurance scheme and “ Eldershield” is one for you.
Eldershield is a severe disability insurance scheme launched by the Ministry of Health, Singapore. It has several benefits. It provides financial protection at very affordable annual premiums. And the amount of premium never increases. Overall, it is worth spending for you and so, you should join Eldershield.
The Final Thought
We hope this reading has been interesting and informative for you. Now you would have known almost everything about Eldershield insurance coverage and its potential benefits. It is a very useful severe disability insurance scheme that allows you to be assured about your future. If you are concerned about your old age, this insurance scheme is perfect for you. You should not opt-out your name as it is worth joining Eldershield.