Eldershield

Dear Mr Tan,

Recently I received an ElderShield policy from an insurer (appointed by MOH). I already have my own endowment and life policies. Do you think it is necessary for me to take up the ElderShield and ElderShield Supplement policies?

REPLY:

I have extracted the following information from NTUC Income's website.

* 1 in 12 people is expected to make a claim (due to severe disability)
* the benefit is $400 a month for 60 months (but some elderly people may die before collecting for 60 months).

If you have sufficient savings that can take care of a severe disability, you do not need to buy the Eldershield plan. You can carry the risk on you own. The total payout under Elderhsield is a maximum of $24,000 over 60 months.

If you cannot take the risk of a severe disability, then you need to buy this insurance.

You can read more from this website.

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Premium payable at age 40 for 26 years:

Male $174.96
Female $217.76

Total premium paid, plus interest accumulated at 4% to age 80:
Male $13,964
Female $17,376
This is nearly 48% (male) and 60% (female) of the maximum payout of $28,800.