Overview
Eldershield is a severe disablity assistance scheme to help individuals cope with the financial demands of a disability.
Singaporeans and PRs aged 40 with Medisave accounts will be automatically included in the scheme unless they opt out of it. The plan pays out when one is unable to perform 3 out of the 6 activities of daily living, namely feeding, dressing, mobility, transferring, toileting and washing.
A fixed monthly benefit is payable up to a fixed number of years. Premiums can be paid using Medisave or cash (can be deducted from Medisave accounts of spouse, children, grandchildren or parents).
Features
1. Lifetime Cover
2. Guaranteed Renewable
3. Worldwide Coverage
4. Tax-Free Cash Payout (use it anyway you like)
5. 90-Day Deferment Period
6. Waiver Of Premiums
Eldershield Reform 2007
This reform took place in September 2007. Key revisions were:
- Cash benefit increased from $300 to $400 per month
- Maximum benefit payout duration extended from 60 months to 72 months
- Introduction of Eldershield Supplements (available from Aviva, NTUC Income & GE)
Eldershield Supplement 2007
This was introduced because a $300/$400 benefit per month is not going to be sufficient for medical care and related expenses. The supplement covers a higher monthly cash benefit; the range is from $800 to $2,000. A maximum of $600 can be used from Medisave account to pay for the supplement premium. Any balance above $600 will be paid with cash.
Competitive Analysis - The Straits Times, 10 November 2007
“… rehabilitation benefit ... Only Aviva offers it as part of its plan. This is useful as a person who is severely disabled now could get better later given medical advances"
"But its 10 years' coverage is a limitation, the experts said. They prefer Income and Aviva's lifetime coverage."
"Another factor in Aviva's favour is that it gives rehabilitation benefit at premiums which are not much more ..."
"... an example of a 40 year old man who wants to get $1,000 a month for life if he becomes disabled ... An Aviva basic plan and supplement costs $695 a year until premiums no longer have to be paid at age 67 or $501 a year."
"An Income set of plans cost $860 a year till age 65. A GE set costs $549 per year, but coverage lasts for only 10 years."
Should You Wait Till You're Older?
You may think you can defer getting the Eldershield supplement till when you're older, say in your 50's. Think again.
The chances of severe disabilities increase sharply as we age. Based on the experience of advanced countries, men and women have a 35% and 45% chance of being disabled in their lifetime respectively (Source - MOH). Illnesses, accidents and frailty are all common reasons for temporary or long term disability.
The chances of severe disabilities increase sharply as we age. Based on the experience of advanced countries, men and women have a 35% and 45% chance of being disabled in their lifetime respectively (Source - MOH). Illnesses, accidents and frailty are all common reasons for temporary or long term disability.
Since the launch of Eldershield in 2002, in a 4 short year span, there were 2,366 claims paid out by Eldershield and 7,183 by the IDAPE scheme (those who do not qualify for Eldershield and age 70 and above)(Source - MOH Eldershield Experience Study 2002-2007).
Given a Singaporean's lifestyle and high living standards, the ability for one to stop work to look after a disabled family member over the long term is considerably very low.
When you're healthy, get the best that money can buy to cover you.
Opinion
Aviva Mycare is currently the most competitive Eldershield Supplement program in the market.
It is very affordable. It has the most comprehensive benefits. Another piece of good news - you use the interest from your Medisave to pay for the supplement and the principle stays intact.
Resource
If you wish to learn more about Eldershield and how you can increase the monthly benefit, give me a call at 9873 1075 or drop me an email.
