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Dealing with medical, caregiving and transport bills: How to cope with unexpected costs in the event of severe disability
Singlife’s CareShield Standard and Plus insurance plans offer monthly benefit payouts and other financial support so that you or your loved ones can focus on receiving the care needed
As severe disability may place financial strain on the patient and their family, it is important that households take this into account when planning for the future. PHOTO: SINGLIFE
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Former auditor Christina Quah knows first-hand the profound impact severe disability can have on an entire family.
Several years ago, she made the difficult decision to step away from the corporate world due to some family matters. Eventually, as she wanted to focus on raising her children, she became full-time homemaker.
Little did she know, her two sons, then aged 3 and 4 would not be the only ones needing her attention.
In the same year, her mother underwent a hysterectomy and she returned to Malaysia for some time to care for her. A few years later, her father-in-law who had diabetes, had to have a leg amputated. As a result, Ms Quah became the primary caregiver to two elderly parents, each requiring specialised care and attention.
The health conditions of her family members required the household to make many adjustments. Ms Quah recalls that her mother-in-law purchased a hospital bed, wheelchair and a motorised wheelchair after her father-in-law underwent amputation.
“We also installed grab bars around the home to enable my father-in-law to move independently and be comfortable at home,” she adds.
Ms Quah also found herself adapting her lifestyle to the new circumstances, carving out space in her schedule to take her father-in-law to medical appointments.
Fortunately for the family, Ms Quah’s father-in-law, a former civil servant, could claim some health insurance benefits.
She shares: “Thankfully, my father-in-law's medical bills were covered under the Civil Service Card (CSC) pension scheme, and we applied for subsidies for assistive devices. However, individuals or families who don’t pass the means test and are not eligible for any subsidies will have to depend on their savings.”
The true cost of disability
The predicament Ms Quah’s family found themselves in is not uncommon. For many elderly Singaporeans, the onset of severe disability can lead to dramatic changes. And the need to plan for disability is all the more pressing as Singapore is a rapidly ageing society. According to the Ministry of Health, one in two Singaporeans over 65 could become severely disabled in their lifetime.
Disability typically involves physical and/or cognitive impairment that necessitates some level of caregiving or supervision. People with disability are not able to perform certain Activities of Daily Living (ADLs), defined as washing, dressing, feeding, toileting, walking or moving around and transferring.
Severe disability can also place financial burden on the patient and their family. It is thus important that households take this into account when planning for the future. Cost of long-term care can include aids to help in daily living, everyday living expenses, caregiver expenses, medication and therapy.
One of the common ways family members provide round-the-clock care for loved ones with severe disabilities is to hire caregivers. But engaging a care professional can be costly. In Ms Quah’s case, her mother-in-law engaged a domestic helper to help care for her father-in-law for several months during his recovery period, until he passed away in early 2017. She recalls that around six to seven years ago, her mother-in-law was paying the helper about $550 a month.
Ad hoc caregiving from professional care providers costs an estimated $24 per hour. For families who need extensive assistance, an example of a 200-hour package for a caregiver offering ADL assistance starts from $4,100, while their 200-hour package for a caregiver offering ADL assistance and simple nursing costs $4,700. Singlife is working with professional companies like Homage and others to offer a more seamless and preferred pricing for families who need extensive assistance on home care and nursing care.
To provide basic financial support in the event of severe disability, the government introduced CareShield Life, a national long-term care insurance scheme which offers basic coverage for long-term care costs in the event of severe disability. Benefits include lifetime monthly cash payouts beginning at $600 per month in 2020 and increase over time. According to MOH, over 1.47 million Singaporeans have enrolled themselves in CareShield Life as of December 2022, with a further 762,000 ElderShield policyholders who have not upgraded to CareShield Life.
Singaporeans born in 1980 or later are automatically covered from Oct 1, 2020, or when they turn 30, whichever is later. For those born in 1979 or earlier, participation is optional, in most cases.
Getting more financial support
CareShield Life payouts alone may not offer adequate financial support. This is why a CareShield Life supplement may be necessary to have greater assurance.
As one of three Singapore’s provider of both Careshield Life and Eldershield supplements, Singlife’s CareShield Standard and Plus was rolled out in 2020 to provide enhanced CareShield Life payouts, which can be used for lifestyle expenses like transportation to medical appointments, hiring of caregivers or assistive medical devices. As households grapple with rising costs of living, Singlife’s plans make such expenses more accessible. Here are ways they can help:
- Singlife CareShield Plus policyholders gain access to disability payouts when they cannot perform at least two ADLs, while Singlife CareShield Standard policyholders receive payouts when they cannot perform at least three ADLs.
- The plans offer payouts ranging from $200 to $5,000 monthly on top of the CareShield Life entitlement to help you better manage costs associated with severe disability.
- Upon diagnosis of severe disability, policyholders are entitled to a lump-sum payout equivalent to three times the monthly benefit.
- Policyholders who are unable to perform one ADL, receive waiver relief which frees them from paying premiums.
- To ensure policyholders have better financial support, Singlife will introduce a new Add-on Benefit from Oct 3, 2023, where Singlife CareShield Standard and Plus policyholders will receive an additional monthly payout for up to 12 months. Payouts start when they cannot perform one ADL for Singlife CareShield Plus and two ADLs for Singlife CareShield Standard.
- Severely disabled policyholders with children under the age of 22 also receive an additional caregiver benefit.
Policyholders have a choice of payment terms, namely fixed or increasing, with a customisable payment period which can continue until after they turn 98 or, alternatively, over a limited timeframe.
Up to $600 worth of premiums can be paid with MediSave, which reduces or even cancels out-of-pocket costs. This means that policyholders can enhance their disability protection with minimal cash outlay.
In addition, to offer households even greater support, under the newly launched Singlife Care Collab programme, Singlife has formed a partnership with Homage – a homegrown healthtech start-up that delivers on-demand home and community-based care for seniors.
Through this partnership, Singlife CareShield policyholders will gain better access and enjoy reduced service rates on caregiving services, such as a Severe Disability Assessment, financial counselling, and guidance on applying for financial assistance schemes and caregiver grants. This partnership also helps to raise awareness about the importance of long-term care planning and the challenges faced by our ageing population. Policy holders can also learn more about this programme here.
Enhance your CareShield Life coverage with Singlife CareShield Standard or Plus and enjoy a 20 per cent lifetime premium discount. Visit this website for more information.
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Terms and conditions
Terms and conditions apply. This policy is underwritten by Singapore Life Ltd. The Straits Times is not an insurance agent/intermediary and cannot solicit any insurance business, give advice, recommend any product or arrange any insurance contract. Please direct all enquiries to Singapore Life Ltd.
This material is published for general information only and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. You should read the Product Summary and seek advice from a financial adviser representative before making a commitment to purchase the product. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premium paid. Buying a health insurance policy that is not suitable for you may impact your ability to finance your future healthcare needs.
This advertisement has not been reviewed by the Monetary Authority of Singapore. Protected up to specified limits by SDIC.
The information contained in this broadcast is accurate as at Oct 5, 2023.
