CareShield Life subsidies same for all S'poreans based on age, financial status

We refer to Ms Salma Khalik's commentary, which suggested that policyholders who are currently insured under ElderShield 400 will be given more subsidies than those who are under ElderShield 300 when they join CareShield Life (CareShield Life a good move, but subsidies are rather skewed; July 7).

This is not so.

Singaporeans born in 1979 or earlier who opt in to CareShield Life will receive the same participation incentives based on their age, and premium subsidies based on their financial status, regardless of whether they are currently insured under ElderShield 400, ElderShield 300 or are uninsured.

As an example, a woman aged 54 in 2021 who is currently insured under ElderShield 400 will see a premium of $800 per year when she opts in to CareShield Life in 2021.

She will receive a participation incentive of $1,500 and, if she falls under the middle-income bracket, enjoy $160 in premium subsidy. Her net base premium in 2021 is estimated to be $490 per year. Another woman of the same age and financial status but insured under ElderShield 300 will see a premium of $900 per year in 2021. The additional $100 in premiums is the catch-up component, to bring her on a par with the ElderShield 400 policyholder who has paid more premiums in the past.

After receiving the same participation incentive of $1,500 and premium subsidy of $160, her net base premium in 2021 is $590 per year.

As CareShield Life provides higher lifetime payouts that increase over time, both policyholders can receive payouts of $790 per month (or $9,480 a year) for life if they become severely disabled at 67 years old or later, if we assume that payouts increase by 2 per cent per annum.

For Singaporeans who are unable to pay for their CareShield Life premiums even after the incentives and subsidies, the Government will provide additional premium support.

No Singaporean who joins CareShield Life will lose his coverage due to financial difficulties.

Lim Siok Peng (Ms)

Director, Corporate Communications

Ministry of Health

A version of this article appeared in the print edition of The Straits Times on July 10, 2018, with the headline 'CareShield Life subsidies same for all S'poreans based on age, financial status'. Print Edition | Subscribe