ElderShield premiums are kept affordable to ensure that all Singaporeans have basic financial protection in the event of a severe disability in old age. The premiums are based on the age at which you join the scheme, and payable until age 65. Premiums can be fully paid by MediSave.
There are two key premium features:
Your premium amount does not increase with ageYour premium amount is determined at the age of entry and does not increase with age. Premiums are payable annually until you reach 65 years old or when you make a successful claim.
You are covered for lifeOnce you start paying premiums, you can make a claim at any age, should you suffer from severe disability. Even after your premium payment term is completed at age 65, you remain insured for life.
Are premiums collected from younger policyholders used to pay for claims by older policyholders?
Premiums for insurance such as ElderShield are risk-pooled within age cohorts, and are not intended to cross-subsidise across generations. Premiums paid by your cohort during your cohort’s working years are not only used to cover your own cohort’s costs in the short-term, but also in the future, after premium payment has stopped, in the event of severe disability. This is also known as pre-funding.
Therefore, it is expected that premiums collected are much larger than the payouts disbursed when policyholders in your cohort are young. Very few policyholders will claim at younger ages when premiums are still being paid into the insurance fund, as the likelihood of severe disability is low. However, as your cohort ages, premium payment will eventually stop, and the likelihood of severe disability will also have increased. More policyholders will start claiming and drawing down on the premiums that your cohort had contributed in your working years.
Premiums for ElderShield400 and ElderShield300 Policyholders
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|Annual Premiums(Payable till Age 65) ($)|
Paying for your premiums
MediSave can be used to pay your full premiums. You can use your own MediSave, or the MediSave of your spouse, parents, children, or grandchildren. If there is insufficient funds in your MediSave Account, you can top up your MediSave Account via one of the following methods:
What if you cannot afford your premiums and decide to drop out?
You may still be able to receive some payouts if you have paid a minimum amount of premiums. The level of payouts you can receive will depend on the amount of premiums paid.