Long-Term Care Planning - Why You Should Never Underestimate the Need For Additional Coverage

So your MediSave just got deducted for CareShield Life? Yup, it’s the government’s long-term disability insurance for Singaporeans and Permanent Residents aged 30 and above, which pays out a small sum of money should they become severely disabled. But is that really enough to cover all your needs? There’s no denying that severe disability can hit anyone, any time, at any age. And you need to make sure you take precautions. Here’s how you can do so by enhancing your current long-term care insurance coverage.

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Why do you even need long-term care coverage?

Long-term care insurance coverage provides supplemental financial support if you become severely disabled, giving the extra peace of mind when something unexpected happens.

Why should I care?

When it comes to planning for the future, one thing that we don’t usually think about is long-term care insurance.

By 2030, about 25% of Singapore’s population will be aged 65 and above. With older age comes more health problems including chronic diseases such as kidney failure and diabetes and illnesses such as stroke or cancer, which may lead to disabilities. Even if you’re younger, unexpected accidents may happen at any time.

Lifetime Disability

According to the Ministry of Health, 1 in 2 people aged 65 could become severely disabled in their lifetime.

Disabilities could persist for years

Disabilities could persist for years. The Ministry of Health states that 4 years is the median length of time a person lives with severe disability, while about 3 in 10 could be severely disabled for 10 years or more.

Easing some of the Financial Strain

Long-term care insurance is the coverage that gives you financial support for the time you remain severely disabled, easing some of the financial strain off you. Aviva Singapore offers such coverage through two plans — MyLongTermCare and MyLongTermCare Plus.

Ease the financial burden

Aviva’s MyLongTermCare and MyLongTermCare Plus can help.

Higher Monthly Payouts

A long-term care insurance plan will provide additional financial support on top of CareShield Life. Aviva’s MyLongTermCare and MyLongTermCare Plus give payouts of up to $5,000 per month.

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What’s the real cost of being disabled?

Living with severe disabilities can be costly. According to Aviva’s Long-Term Care Study, you’ll need an average of $2,324/month for a variety of things like daily expenses, mobility aids, engaging a caregiver and medication.
If you’re disabled, you may not be able to work either. Do you have sufficient savings? Do you have a family or elderly parents to provide for?

What do I get out of a long-term care plan?

CareShield Life is the government’s long-term care plan to take care of us in case of severe disability. Singaporeans born after 1980 are automatically enrolled when they hit 30 on 1st October 2020 or when they hit 30, whichever is later. Monthly payouts begin from $600 and increase 2% per year until 2025. After that, an independent CareShield Life Council will decide on payout increases and corresponding premium adjustments.
A supplemental plan like MyLongTermCare provides $200 to $5,000/month on top of CareShield Life for as long as you’re unable to perform at least 3 out of 6 Activities of Daily Living* (ADL).

With MyLongTermCare Plus, payouts begin when you can't perform at least 2 out of 6 ADLs.

What’s more, premiums are waived when the claimant is unable to perform 1 ADL onwards (mild disability).

*The 6 ADLs are: Dressing, Feeding, Washing, Toileting, Transferring and Walking or moving around.

Extra Benefits

Getting a supplemental long-term care plan entitles you to extra benefits on top of CareShield Life benefits. For example, Aviva’s long-term care plans also offer various additional payouts such as a lump sum benefit should you become disabled.

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Find out more about the Long-term Care Supplement Plan in Action

What We Like About Aviva’s MyLongTermCare plans.

Long-Term Support

With plans like Aviva’s MyLongTermCare and MyLongTermCare Plus, you’ll be covered for as long as you suffer from severe disability and are unable to perform the specified number of ADLs. You can choose to receive fixed payouts or increasing payouts at 2% or 3% per annum until the end of the premium term or when a claim is made.

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Find out how this family with two young children coped when severe disability struck

Little or No Cash Outlay for Premiums

When you apply, you can:

Pay for premiums of up to $600 with MediSave

So it’s possible to get long-term care coverage without paying any cash.

Get a discount

Aviva is also giving a perpetual 20% discount on MyLongTermCare and MyLongTermCare Plus plan premiums for a minimum annual premium of $500.

Prepare for the long haul

Get Aviva's MyLongTermCare or MyLongTermCare Plus now!

Frequently Asked Questions about long-term care insurance

What is long-term care insurance?

Long-term care insurance offers a fixed amount of cash monthly for long-term nursing care that typically includes assistance with daily activities such as bathing, dressing, and feeding. This coverage is often offered by insurers in the form of CareShield Life supplements (for those born 1980 and later) or ElderShield supplements (for those born in 1979 and earlier).

What is the purpose of long-term care insurance?

Long-term care insurance mainly provides financial support if a person becomes severely disabled and is unable to perform some Activities of Daily Living (ADL). The 6 ADLs are: Dressing, Feeding, Washing, Toileting, Transferring and Walking or moving around.

What does long-term care insurance cover?

Long-term care insurance provides coverage for severe disability, which could span a few years or continue for the rest of one's life. In comparison, health insurance covers medical costs and hospitalisation fees when you need it, while a critical illness plan offers a lump sum payout when you are diagnosed with a critical illness as defined by the insurer. They do not cover the cost of long-term care should you become severely disabled.

What is CareShield Life?

CareShield Life is a disability insurance scheme that was launched by the government in October 2020. The scheme will give monthly payouts if you become severely disabled, that is, unable to perform at least 3 ADLs.

All Singapore Citizens and Permanent Residents born in 1980 and later, will be automatically enrolled into the programme when they turn 30 years old.

This is underwritten by Aviva Ltd (“Aviva”).

MoneySmart Singapore Ptd Ltd ("MoneySmart") is an Introducer for Aviva and receives remuneration from Aviva. An as Introducer, MoneySmart is not allowed to solicit insurance business, give advice, recommend any product, or be involved in any arrangement of any insurance between you and Aviva. Please direct all enquiries to Aviva.

This 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. A copy of the Product Summary may be obtained from Aviva Ltd and the participating distributors' offices. You should read the Product Summary before deciding whether to purchase the product. You may wish to seek advice from a financial adviser representative before making a commitment to purchase the product. In the event that you choose not to seek advice from a financial adviser representative, you should consider whether the product in question is suitable for you. Buying a health insurance policy that is not suitable for you may impact your ability to finance your future healthcare needs.

This is not a contract of insurance. Full details of the standard terms and conditions of this policy can be found in the relevant policy contract.

Information is accurate as of October 2021. (to update the month accordingly)

Protected up to specified limits by SDIC.

Want to enhance your long-term care coverage?

Apply for Aviva's MyLongTermCare or MyLongTermCare Plus.