Probably the most obvious and important point.

Given that the CareShield Life only provides for the most basic needs, a higher monthly payout will allow you better care facilities and cater to more expenses if the need arises.

You can enhance up to monthly payout of $5,000 but cash premiums are usually needed at that point.

Assuming that you want to stick with a fixed premium of $600/year (the limit you can use from MediSave), you can get a higher monthly payout (or at a lower premium) if you upgrade now compared to if you upgrade later.

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higher monthly Payouts

easier claim eligibility

The basic CareShield Life only pays out when at least 3 out of 6 Activities of Daily Living (ADLs) can’t be done.

That’s the only definition.

With CareShield supplements, there’ll be more options.

You can just to stick with the standard 3 out of 6 ADLs, or select a claim eligibility of 2 out of 6 ADLs, etc.

Compared to the 3 out of 6 ADLs option, the 2 out of 6 ADLs do come at heavier cost, which will lower your monthly payout if you wish to stick with the $600/year MediSave limit.

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various premium paying terms

Choices for premium terms of supplements open up too.

You need not stick with the standard – pay till 67 years old.

Depending on the company, there are various options such as pay till age 67, 84, 97, etc.

Just take note that the shorter the premium paying term, the higher premiums, with all things equal.

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enhanced benefits

The sole benefit of having the basic CareShield Life is that you get the monthly disability payout – that’s pretty much it.

With CareShield upgrades, there are more benefits that come with it.

These include:

- Waiver of premium even if 1 or 2 ADLs happen
- Level or increasing payouts
- Increased payouts if you have dependants
- Still get a reduced payout if you recover to 2 ADLs
- etc

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Make better use of your CPF MediSave

Just to iterate again, you may use your MediSave to pay for the premiums of the supplements. The cap is $600/year, and so if the premiums are higher, you’ll need to top up in cash.

Most Singaporeans would just fully utilise at least up to the limit of $600.

Why?

Your CPF MediSave balances give you 4% interest per year.

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Take advantage of your good health

Although the basic CareShield covers pre-existing conditions, the CareShield Life supplements offered by the insurance companies might not.

You may need a pay a higher premium, get excluded, or rejected, if you have existing health conditions.

Thus, if you’re currently enjoying good health now, you may want to take this chance to apply for better coverage.

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You don’t need to be locked in

Similarly to the Integrated Shield Plan (the upgrade of MediShield Life), you “pay as you go”.

It’ll be unlike the endowment savings plans or whole life plans that require you to commit as the penalties of discontinuing will be heavy.

As the CareShield Life upgrades do not accumulate cash value, you may discontinue it without penalties (other than the premiums you’ve already paid).

So let’s say 5 years down the road and you’re really not able to continue paying the premiums, you may discontinue the upgrade. But the disadvantage is that you’ll lose that additional coverage that come with the supplement. So speak to your financial consultant before doing anything like that.

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