Understanding CPF
Here Is How CareShield Life Can Help You Take Care Of Your Aging Parents
Your parents are the two people that have given you life and provided all the things you need when growing up. Moving forward and you start to realize that the roles are changing. You are the one who will be taking care of them when they grow old.
Nonetheless, you are also starting your own family and you do not have all the money you need to fully support everyone. Fortunately, the CareShield Life scheme is something that may help you when things go sour.
What Is CareShield Life?
People are living longer nowadays. But at the same time, that does not mean you have the fullest of health when you are around the age of 60 or 70. Our retirement funds are simply not enough if you need the money to support you when you become disabled.
Long-Term Care is the medical and personal care needed if you become disabled due to your age or complicated health conditions.
CareShield Life is a Long-Term Care scheme that concentrated at the severe disability and which provides monthly payouts.
Severe disability means the inability to do three out of six activities of daily living (ADLs). They are:
- Transferring
- Walking
- Washing
- Toileting
- Clothing
- Feeding
The Extra Cash Will Help
With the monthly payout that you will get from CareShield Life, it opens various options to take care of them. You can either hire a domestic helper. Or you could even quit your job to take care of them.
Money is not everything. But in most cases, it does help in making things easier. The expenses do not need to come out from your own salary. And it does not have to come from retirement funds either.
Payable Via CPF MediSave Account
Yes, it is. It will be payable via your CPF MediSave Account.
CareShield Life can be paid via your parents’ account. It can also be paid the child, which is you. Thus, it does help a lot knowing that you can finance it without touching your cash.
You Will Be Covered Upon Reaching 30
CareShield Life will only start in 2020. And it is different from its predecessor, ElderShield.
Previously, ElderShield is only applicable to aged 40 and above. But now, with the introduction of CareShield Life, you will be covered upon reaching the age of 30.
Getting Ready For Changes
Some of your parents might already be in the older Long-Term Care scheme, which is ElderShield. They are able to change into the CareShield Life scheme in 2021.
Only people who are born from 1970 to 1979 will be auto-enrolled. Those who are born earlier would most likely have to request for the change of coverage.
Anyone can switch into the CareShield Life scheme as long as they are not severely disabled.
That comes to the end of this article. Hope that this is beneficial for you and do share it with your family friends. Till next time.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
