Long-term care support schemes are increasingly being focused on and that is no surprise, given the inevitable issue of the aging population that we are going to face.
Two of the newer CPF-related terms that we are going to be acquainted with are MediSave Care and CareShield Life.
CareShield Life should be familiar to more people as it was announced in September last year. To take it word-for-word from CPF official website, CareShield Life is a long-term care insurance which provides financial protection against long-term care costs of Singaporeans – basically better protection and assurance for basic long-term care needs via the following –
- Lifetime cash payouts for as long as the insured remain severely disabled
- Increasing payouts starting at $600/month
- Government subsidies to make it affordable and no one will lose coverage even if they cannot pay premiums
- Premiums can be fully paid by MediSave
I think that the key criteria here is know exactly what “severely disabled” means.
In simple terms, severe disability is defined as being unable to perform three or more Activities of Daily Living (ADLs). These include washing, feeding, dressing, toileting, mobility and transferring independently.
Pertaining to my eligibility for CareShield Life, I’m a Singapore Citizen born in 1980 or later. Therefore, I will automatically join the new scheme upon the scheme launch date in end-2020, even if I have any pre-existing conditions or disabilities.
There is no opting out of this scheme for me but hey, I’d simply take it as another layer of safety net if I eventually do need to rely on it.
MediSave Care was a relatively new term for me as I had only just learnt about it recently, and it is actually related to CareShield Life and severe disability.
I think they realized that MediSave Withdrawals for Long-Term Care is quite a mouthful and decided to tone it down to something a little more catchy.
MediSave Care is a scheme whereby Singapore Citizens and Permanent Residents aged 30 and above who are severely disabled will be able to make monthly cash withdrawals from their own and/or their spouse’s MediSave account for their long-term care needs.
The key criteria is that first, we must have already set aside a minimum amount in our MediSave account (otherwise known as CPF-MA) to ensure adequacy for other medical expenses.
The table below shows the MediSave balances and corresponding monthly MediSave withdrawal quantum for severely disabled Singapore Citizens and Permanent Residents aged 30 and above obtained from CPF Board website.
|MediSave Account / CPF-MA||Monthly Withdrawal|
|$20,000 and above||$200|
|$15,000 and above||$150|
|$10,000 and above||$100|
|$5,000 and above||$50|
You may wish to read this in relation to a slew of MediSave related changes in recent years.
Most recently, it was announced that higher MediSave withdrawal limit of $700 (from $500) for persons with complex chronic conditions will apply from 2021 onwards. The higher limit is only applicable for patients with two or more conditions under the Chronic Disease Management Plan (CDMP) or one CDMP condition with complications.
A more problematic development is that the withdrawal limit will be set according to per-patient basis instead of per-account basis. A patient is now only eligible to withdraw only up to the $500 or $700 limit regardless of how many family members’ accounts had used.
This is definitely not good for me. I wrote about how I had paid for my parents’ medical treatments or medication. These chronic issues are basically recurring costs and there’s no escaping from it.
I’m not too sure of the need to lessen flexibility when children can afford it. Last of all, an official infographic from CPF Board for all the critical bits.
In case you didn’t know, long-term care support schemes CareShield Life and MediSave Care will be launched by end-2020 instead of mid-2020 as originally planned because the agencies and vendors have had to reduce the pace of implementation due to COVID-19 safe distancing precautions and circuit breaker measures.
I blog about these CPF-related issues because they have a significant impact on my blueprint for financial independence and my journey to get there.
A new blog post coming up this month is my mid-year CPF Report. The full series of CPF Reports from 2017 (when I started writing) to 2020 can be found here. Instead of being a yearly affair, I will be updating it every July and January moving forward.
Blog news & stuff
No matter which is your preferred app or medium, there are plenty of ways to get notified when there are new blog posts instead of having to check my blog manually! Subscribe if you found this blog helpful!
Oh – did I mention I have a brand new shop?
It is basically an upgraded version of my dedicated referral links & codes page and some are exclusive offers. In my virtual store, I penned down my thoughts and listed some awesome products and services that I’m already paying for that helped to supercharge my financial journey. Check it out – it might have something you want!
This humble blog will not be here without your support and will always remain free for all. Donations of crypto to SgFireBlogger.eth are greatly appreciated. If you use Brave browser, I am a verified creator so you can tip $BAT directly within the browser. Why not download Brave and give it a try?
Hello! I’m Kevin, Turtle Investor
At the age of 30, I am the personal finance blogger who laid claim to a negative net worth of minus $25,755.
Seven years later in 2019, I hit CPF Full Retirement Sum (FRS) of $176,000 without making a single cent of CPF top-up. More tidbits about myself here if you’re curious. My blueprint for financial independence can help give you a headstart in your own FIRE journey.
I am married to a lovely wife and that means dual income with no kids. In my free time, I chase miles so that we can fly in business class. My hobby is making pocket change off this blog and sharing everything I know with you!
Get Weekly Updates & Giveaways
Sign up to receive weekly updates delivered straight to your inbox! As an exclusive perk of supporting Turtle Investor, you will always be eligible for the annual giveaway!