I’ve been getting many blank looks when I asked my clients and friends if they know what Eldershield is and how it can benefit them.  This is understandably so especially for individuals who are below 40 years old.  

For those people who have received letters from Great Eastern or NTUC Income to upgrade their Eldershield, most would have disposed the letter or they would file it for future reference, hoping that one day someone would explain to them. 

Conclusion: What you don’t understand, you ignore. 

That seems to be the most natural reaction from individuals.  This further strengthens my stand on education first before recommending any solutions to solve a person’s needs.

A brief desciption of Eldershield
It is a severe disablity assistance scheme to help individuals cope with the financial demands of a disability.

• Singaporeans and PRs age 40 with medisave accounts will be automatically included in the scheme unless
• they opt out of it
• The plan pays out when one is unable to perform 3 out of the 6 activities of daily living > feeding, dressing, mobility, transferring, toileting and washing
• A fixed monthly benefit is payable up to a fixed number of years

Premiums can be paid using medisave or cash (can be deducted from medisave accounts of spouse, children, grandchildren or parents)

Eldershield Features

1. Lifetime cover
2. Guaranteed renewable
3. Worldwide coverage/
4. Tax-free cash payout (use it anyway you like)
5. 90-day deferment period
6. Waiver of premiums

Eldershield Reform 2007
This took place in September 2007.  Key revisions are:

• Benefit inceased from $300 to $400 per month
• Maximum benefit payout duration extended from 60 months to 72 months
• Introduction of Eldershield Supplements (available from Aviva, NTUC Income & GE)

Eldershield Supplement 2007
This was introduced because a $300/$400 benefit per month is not going to be sufficient for medical care and related expenses.  The Eldershield supplement covers a higher monthly benefit; the range is from $800 to $2,000.  A maximum of $600 can be used from medisave account to pay for the supplement premium. Any balance above $600 will be paid with cash.

Competitive Analysis - The Straits Times, 10 November 2007  

“…rehabilitation benefit … Only Aviva offers it as part of its plan. This is useful as a person who is severely disabled now could get better later given medical advances”

“But its 10 years’ coverage is a limitation, the experts said. They prefer Income and Aviva’s lifetime coverage.”

“Another factor in Aviva’s favour is that it gives rehabiliation benefit at premiums which are not much more…”

“… an example of a 40 year old man who wants to get $1,000 a month for life if he becomes disabled … An Aviva basic plan and supplement costs $695 a year until premiums no longer have to be paid at age 67 or $501 a year.”

“An Income set of plans cost $860 a year till age 65. A GE set costs $549 per year, but coverage lasts for only 10 years.”

Some Facts
You may think you can defer getting the Supplement till when you’re older say in your 50’s. Think again. The chances of severe disabilities increase sharply as we age. Based on the experience of advanced countries, men and women have a 35% and 45% chance of being disabled in their lifetime respectively (source: MOH). Illnesses, accidents and frailty are all common reason for temporary or long term disability.

Since the lanch of Eldershield in 2002, in a 4 short year span, there were 2,366 claims paid out by Eldershield and 7,183 by the IDAPE scheme (those who do not qualify for Eldershield and age 70 and above). (source: MOH Eldershield Experience Study 2002-2007)

Given a SIngaporean’s lifestyle and high living standards, the ability for one to stop work to look after a disabled family member over the long term is probably very low.

When you’re healthy, get the best that money can buy to cover you.  

Conclusion
Aviva Mycare is currently the most competitive Eldershield Supplement program in the market. 

• It is very affordable
• It has the most comprehensive benefits

Another good news - you are using the interest from your medisave to pay for the supplement.  Your medisave principle stays intact. 

If you wish to learn more about Eldershield and how you can increase the monthly benefit, give me a call at 9873 1075 or drop me an email.

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