In part 1 of this article, we mentioned that CareShield Life is a long-term care insurance, which provides financial protection against long-term care costs of Singaporeans in the event of severe disability.
What is the definition of Severe Disability?
The following information is provided by the CPF website.
When a person is unable to do at least three of these six Activities of Daily Living (ADLs) listed below, the person is considered to have severe disability. If you or your loved one meets this criteria, you may wish to consider submitting a claim.
Washing
The ability to wash in the bath or shower (including getting into and out of the bath or shower) or do a sponge/bed bath.
Dressing
The ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical or medical appliances.
Feeding
The ability to feed oneself food after it has been prepared and made available.
Toileting
The ability to use the toilet or manage bowel and bladder function through the use of protective undergarments such as diapers or surgical appliances if appropriate.
Mobility
The ability to move indoors from room to room on level surfaces.
Transferring
The ability to move from a bed to an upright chair or wheelchair, and vice versa
How much is the CareShield Life Monthly Payout?
In 2020, the monthly payout under CareShield Life is $600/month.
As discussed in our previous article, this amount may not be sufficient, partly because medical treatment in Singapore is expensive.
How expensive is rehabilitation in Singapore?
Let’s use the rates and charges of Sengkang Community Hospital as a benchmark.
Source: Singhealth.com.sg
As you can see, the estimated average daily hospital bill size (with Government Subsidy) for rehabilitation is $144 – $401. For PR, that is amount is $261 – $448.
$144 x 30 days = $4,320/month
This amount is 7.2 times that of the Careshield Life monthly payout.
Another important factor to consider is that in the event of severe disability…
It may be necessary to hire a maid to care for the disabled
Source: MSIG.com.sg
According to MSIG, the Monthly Salary of Maid in Singapore (Minimum wage) is between $450 to $570.
This does not include the living expenses (eg. utility, grocery, transport) of the maid, and extra salary for working on rest days, which could reasonably cost another $250/month.
$570 + $250 = $820/month
From the above calculations, it isn’t difficult to see why the $600/month payment from CareShield Life may not be sufficient.
So what can you do about it?
A good solution is to purchase a CareShield Life supplement plan from Private insurers to enhance your monthly payout. You will be able to customize your monthly payout amount and duration according to your needs.
The best part is the CPF Board allows Singaporeans & PRs to utilize up to $600 from Medisave Account to pay for the premiums of the CareShield Life supplement, so you may not need to pay in cash.
If you’d like to learn more about CareShield Life, contact your trusted FLA Organization financial planner today!
