CareShield Life Long-Term Disability Insurance Approved
Long-term Disability Insurance Soon Compulsory in Singapore
In a move to bridge the gap between healthcare and ageing, long-term disability insurance CareShield Life will be compulsory.
Singaporeans born in 1980 onwards will be eligible for CareShield Life, which will provide the severely disabled with the basic care they need. This mandate was passed together with the Long Term Care Bill, a government initiative to keep healthcare affordable.
The Central Provident Fund Board and Agency for Integrated Care will jointly manage this new long-term disability insurance. These provisions mean that the government can start making proactive moves to reach out to the disabled. The government also plants to contact the disabled and let them know they might be eligible for other government disability schemes too.
Should you become severely disabled, this long-term life insurance will provide a minimum of $600 monthly. This assistance will cover the length of the disability, which may sometimes be for life. Premium pay-outs will be adjusted accordingly over the years. This is to ensure pay-outs remain sufficient to cover basic needs.
However, anyone who wants to receive a higher pay-out can opt to purchase supplementary schemes. These are available from private insurance companies and payable to Medisave. Premiums are payable up to the capped annual sum.
With the introduction of the Bill, the Singapore government is set to take over ElderShield insurance. It is currently being operated by three insurance companies, and offering lower pay-outs. ElderShield’s coverage is only for a maximum of 6-years.
Safeguards for CareShield Life
CareShield Life has its eye on the future, and is aimed to look out for Singapore’s younger residents. Should they become severely disabled as they age, this long-term disability insurance is in place to help. Anyone born in 1979 or earlier is not excluded though. They still have the option to sign up for this insurance with an offer to do so.
Safeguards will be enforced to ensure the new initiatives under CareShield Life will not be abused. Penalties will be in place to deal with falsified declarations, which carry a fine of $5,000 or jail for up to 12-months, or both. Pay-outs will also be protected from creditors, with two exceptions. The first is to reimbursing CareShield Life against wilful defaulters. The second exception is for payments made to healthcare institutions for care given to the policy holder. The government also intends to take a strict approach against those who can afford the premium payments, but wilfully refuse to do it. Singaporeans living abroad are included.