If you’re a Singaporean or a Singapore PR, once you turn age 40, you’ll receive the Eldershield insurance cover automatically. The CPF board will mail you this policy contract with a welcome letter stating the policy cover and the premiums.
Why is this long-term care insurance important?
According to a study from an insurance firm in Singapore on long-term care, the average cost of long-term care in Singapore:
- costs about S$2150 per month to pay for various fees such as daily expenses, medical expenses, transport and help from a domestic helper or the monthly fees at a nursing home.
- 37% of the caregivers dedicate over ten years to take care of their loved ones.
- On the average, they provide 6.8 hours of care per day.
Imagine the potential physical, financial and emotional stress of such an event for ourselves and our loved ones.
We’re lucky in Singapore as our government had the foresight and plan ahead to implement this basic Eldershield plan to address the long-term care. In the event of an accident or serious illness AND if the doctor certifies that we cannot perform any 3 out of the 6 Activities of Daily Living (ADL) such as toileting, showering and feeding, then we can claim a cash benefit of $400/mth for 72 months only under the basic Eldershield plan.
Question: is S$400/mth enough for a nursing home or hire a maid to take care of ourselves today?
We cannot plan for retirement without considering the potential out-of-pocket costs of outpatient bills, inpatient medical bills in the event that we are chronically ill or disabled or at home or a in a nursing home.
There’s no point in helping you save half a million of cash , only to let it be wiped out by medical expenses due to a potential critical illness or accidental injury that leads to long-term care (S$258,000 over a ten year period based on the above statistics from the insurer for today and healthcare costs will only increase with inflation).
Imagine at retirement age, you’re setting off in your new boat (metaphorically a new phase of life).
You don’t want leaks in your boat. Should that happen, to plug the leaks, you need fast action.
i.e. insurance that pays you the cash to address the potential stress (physical, financial and emotional stress) of a long-term care event happening to us.
Consider upgrading your long-term care cover with an additional Eldershield supplement plan to increase the monthly cash benefit.
Good news, you can use up to an additional $600/year of Medisave funds and/or cash to pay for this cover for yourself or your parents.
The earlier you or your parents buy this enhanced cover, the earlier you enjoy peace of mind knowing you’ll receive a monthly cash benefit to ease the financial stress of long-term care.
- Choose your preferred monthly cash benefit and premium term to suit your needs.
- Remember we buy insurance with our health. Having good health means it will be easier for you and your parents to qualify for insurance coverage. Helping your parents to fend for themselves is in turn helping you take care of your own money. 😉
- Postponing this idea only put your own insurability or your parents’ insurability at risk. It’s not worth the gamble to possibly lose the insurance option.
A little fast action on your part now to plan ahead can mean saving you and keeping your retirement boat afloat.
PS: There’s a $100 discount for the first year premium with one insurer. Please call Claire at 8168 7459 for an obligation free discussion to explore this insurance cover.