You must have receive a SMS stating that your Eldershield got terminated.
Do not panic. It is not a scam. Neither is there anything to be concern about.
I just received this message moments ago too. The message stated that “Dear XXX, your Eldershield policy will be/has been terminated. Log in to careshieldlife.gov.sg/notifications with your Singpass for more details.”
When you attempt to login to the stated Careshield life website, you may find the website to “hang”. If you attempt to login using your SingPass, it gives an error. If you try to login to CPF website, you cannot login too. It looks like a lot of people are trying to visit the website to see what this message is all about!
The reason for the SMS is that those born in 1970 to 1979 & on Eldershield 400 & not severely disabled was automatically enrolled in CareShield Life in 1 December 2021. I am one of those born between this period and was automatically enroled into Careshield Life at the end of 2021. However, you cannot have both Careshield Life and Eldershield at the same time. Hence, upon successfully switch over to Careshield Life, the previous Eldershield has to be terminated.
If you were born 1979 and earlier, you can opt out of CareShield Life by 31 December 2023 if you do not wish to join the scheme. However, I advise against opting out.
I upgraded my mother’s Eldershield 400 to Careshield Life last year. My mother was already 82. Why the rush? Because of anti-selection. In layman term, it is free lunch.
Anyway, I found it strange that the Eldershield termination notification is sent so late. I had thought my Careshield Life was already effective from 1 December 2021. Perhaps it is a system bug? We shall see.
So, what is Careshield Life and why Careshield Life?
Careshield Life is an insurance scheme that pays a monthly income for those who are severely disabled. According to statistics, 1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime, and may need long-term care. The duration for which long-term care is needed will vary from individual to individual. The median duration that Singaporeans could remain in severe disability is 4 years, and about 3 in 10 could remain in severe disability for 10 years or more.
Hence, Careshield Life is an extremely important insurance. The only issue is that the monthly income is very low at only $624 as at 2022. With nursing home cost amounting to a four figure sum, it is very important to insure with a larger amount through the long-term insurance care provided by private insurers.
If in doubt, always consult a professional financial practitioner.
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