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April 2022

Have you "planned a plan for disability"?

Published 22/04/2022 | Last Updated 68 days ago

Health warning signs you need to know about

What do you think is the cost involved for 24/7 nursing care service in the  event of a long-term disability?

 

"There will be subsidies when I need it" 

Contrary to what you may think – subsidies are not readily accessible to everyone when it comes to nursing care. Long-term care at a nursing home is an option when one is suffering from disability due to an accident or illnesses like stroke, and where family members are not able to be the primary caregiver. This is especially so in the case of a dual-income family with kids.

Costs of a nursing home stay vary depending on quality, comfort and how well-funded these homes are. The median cost of staying in a nursing home is about S$2,000 – S$3,500 per month1. This cost may potentially increase with our rapidly ageing population. Imagine when demand outstrips supply, providers may just up the price. This is why the Ministry of Health made plans in 2021 to build at least 7 more nursing homes in housing estates such as Tampines and Punggol2 .

Nursing homes definitely do not come cheap. And if you are one of those assuming that the Government will dole out subsidies when one is admitted into a nursing home (just as the Government is subsidizing hospitalisation in a B2/C ward at a restructured hospital), you are not alone.

If your household income per capita is S$2,801 and above (which 50% of all Singapore households are)3, it is likely that you will not be receiving any subsidies for nursing home stay4.

 

 

"Oh no, what options do I have now to pay for such costs?" 

Well, if you have sufficient spare cash lying around after accounting for your personal and household expenses, you have absolutely no worries. But seriously, how many of us have the luxury of not having to worry about the dollars and cents in our everyday life?

For the majority of us, it may be more financially prudent to pass these risks to an insurer. Consider a disability plan like Great Eastern’s GREAT CareShield to take care of your long-term care costs should the need arise. GREAT CareShield is a MediSave-approved supplement plan designed to complement your CareShield Life or ElderShield plan. The latter 2 plans are our national disability plan and these plans pay members a monthly payout in the event of inability to perform at least 3 out 6 Activities of Daily Living (ADLs). These 6 activities are washing, dressing, feeding, toileting, walking or moving around, and transferring. 


"Do I need to take up a supplement plan?" 

While both CareShield Life and ElderShield offer disability coverage, the Monthly Payout of S$300 – S$6245 may not be adequate as we have seen from the median cost of a nursing home earlier. Furthermore, both national disability plans only cover you when you are unable to perform 3 or more ADLs.

 

In a research paper6 done by Duke-NUS Graduate Medical School, it is estimated that 47% of those suffering from disability will only have 1 – 2 ADLs limitations. So if you intend to purchase a supplement plan, consider one that covers you from the onset of a 1-ADL disability. GREAT CareShield is the only CareShield Life and ElderShield supplement plan where monthly payouts commence if the Life Assured is unable to perform 1 ADL7 , as opposed to 3 ADLs which is the criteria for CareShield Life and ElderShield.

 

You will be glad to know that premiums for GREAT CareShield are fully payable with your MediSave funds (up to S$600 per insured per calendar year). For a 30 year-old male, you can purchase GREAT CareShield with a Monthly Benefit of S$1,5008 using your MediSave with no cash top-ups at all9!
 

What are you waiting for? Start a conversation with your Great Eastern Financial Representative today!

 

 

Footnotes


MoneySmart. “Nursing Homes in Singapore – How Much Does It Cost?” Source: https://blog.moneysmart.sg/family/nursing-homes-singapore

18 Oct 2021. Ng Wei Kai. The Straits Times. “Seven more nursing homes planned in next two years in estates such as Tampines, Punggol” Source: https://www.straitstimes.com/singapore/health/seven-more-nursing-homes-planned-in-next-two-years-in-estates-such-as-tampines

 

Department of Statistics Singapore. Key Household Trends, 2019. Source: https://www.singstat.gov.sg/-/media/files/publications/households/pp-s26.pdf

 

Ministry of Health. Subsidies for government funded intermediate long term care services. Source: https://www.moh.gov.sg/cost-financing/healthcare-schemes-subsidies/subsidies-for-government-funded-intermediate-long-term-care-services

Monthly Payouts for ElderShield 300 and ElderShield 400 are S$300 (up to 60 months) and S$400 (up to 72 months) respectively. Monthly Payouts for CareShield Life is S$624 in 2022.

Thompson, James & Malhotra, Rahul & Love, Sean & Østbye, Truls & Chan, Angelique & Matchar, David. (2014). Projecting the Number of Older Singaporeans with Activity of Daily Living Limitations Requiring Human Assistance Through 2030. Annals of the Academy of Medicine, Singapore. 43. 51-6.

Subject to Deferment period. Payouts of Monthly Benefit are payable for as long as the Life Assured suffers from the applicable number of disabilities, up to a lifetime.

Illustration is based on premium payment term up to 95 year-old (age last birthday).

Subject to cap of S$600 per calendar year per insured person.

The above is for your information only and does not have regard to the specific investment objectives, financial situation and particular needs of any persons.


You can only claim the GREAT CareShield benefits if you are still unable to perform the ADLs after a 90-day deferment period starting from, and inclusive of, the date of your disability assessment. Premiums are are not fixed and may be adjusted by Great Eastern. Policy Terms and Conditions apply. Protected up to specified limits by SDIC.

This is only product information provided by us. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs.

If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.

GREAT CareShield can be purchased by CareShield Life or ElderShield policyholders. All Supplements are regulated under the CareShield Life and Long-Term Care Act.

Information correct as at 18 March 2022. 

Medical coverage

Plan your disability coverage with GREAT CareShield today! Be well-prepared in the event of a disability with up to lifetime monthly payouts and additional benefits for better support towards your recovery.

 

Protected up to specified limits by SDIC.

 

Contact us GREAT CareShield