The golden years – You have worked hard during your youthful years, and are now enjoying the fruits of your labour. As you were disciplined saver and investor, you have managed to keep a nice tidy sum which allows you to live a comfortable retirement lifestyle. You plan to go down your to-do list and accomplish all the things you wanted to do in the past but didn’t have the time to do so.
However, our bodies isn’t what it used to be. A simple fall or a sprained ankle could be easily brushed off when we were energetic, young adults. But now, such incidents could result in much more deliberating injuries, and keep us at home much longer than anticipated.
From a Straits Times article by Salma Khalik1, the number of people aged 65 and above will more than double from 430,000 to 900,000 in 2030. As health care services improves, over time more people live longer but the fragility of the human body still ties us down to earth.
In the National Survey of Senior Citizens in 20112, it is also discovered that about 2% of senior citizens could not perform at least 3 activities of daily living (ADLs), with 14% of senior citizens living with their spouse or children requiring some form of mobility aid in order to move around.
“This means 1 in 50 senior citizens would require significant assistance to support their daily living, and approximately 1 in 7 senior citizens requiring mobility aid to move around independently.”
During your retirement life stage, severe disability planning should be a primary concern. The occurrence of even a partial disability, would quickly deplete your savings as medical and hospitalization costs adds up.
ElderShield is a severe disability insurance that all CPF members are automatically enrolled in once they hit 40 years old, and can be paid for using your Medisave. There are two versions available, ElderShield 300 which pays $300 per month for 60 months (no longer available for new applications), and ElderShield 400 which pays $400 per month for 72 months. In order to claim from ElderShield, the insured must be unable to perform at least 3 of 6 activities of daily living.
Activities of Daily Living
Washing – The ability to wash in the bath or shower (including getting into and out of the bath of shower) or wash by other means
Dressing – The ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or surgical or medical appliances
Feeding – The ability to feed oneself food after it has been prepared and made available
Toileting – The ability to use the lavatory or manage bowel and bladder function through the use of protective undergarments or surgical appliances if appropriate
Mobility – The ability to move indoors from room to room on level surfaces
Transferring – The ability to move from a bed to an upright chair or wheelchair, and vice versa.
ElderShield Supplements
For people looking for greater coverage beyond those provided for under the Basic ElderShield, be it a higher payout amount or a longer payout period to help cover out-of-pocket expenses, ElderShield supplements are available to help complement and enhance your severe disability coverage.
Based on a recent survey by HSBC3, most Singaporean are concerned on health and long term financial security. Nearly 80 percent of the respondents are worried about the cost of healthcare treatment, medication and rehabilitation.
At Insurance@FSM, we are here to walk with you through your life’s journey. If you would like assistance in reviewing your financial and protection needs, please feel free to contact our team of friendly investment advisers at advisory@fundsupermart.com.
Get your protection needs covered today, at Insurance@FSM.
1Source: http://www.straitstimes.com/singapore/meeting-healthcare-needs-of-ageing-society
3Source: http://www.straitstimes.com/business/invest/sporeans-not-geared-up-for-the-future