When ElderShield was first launched in 2002, it was a new scheme and severe disability insurance was a relatively new concept to many Singaporeans.  Taking into account the past 5 years of experience and public feedback, MOH is using the opportunity of the contract renewal with the ElderShield insurers to reform the ElderShield scheme to make it work better so as to meet the evolving needs of Singaporeans.

All existing policyholders and new policyholders of ElderShield will be affected.  New policyholders will be auto-covered under the new ElderShield scheme (i.e. ElderShield400). Existing policyholders can choose to upgrade their current plan by joining in the new scheme (ElderShield400) or stay on the current ElderShield scheme (ElderShield300).

If you are an existing policyholder and wish to join ElderShield400, you can send the Upgrade Form (which is enclosed in your Welcome Package) via mail to your existing insurer.  Your insurer will contact you on your eligibility to join the new scheme after your application has been assessed.  If you are still paying premiums, you will need to pay the new premiums based on your original entry age and a premium adjustment amount.

For policyholders who are still paying premiums under the Regular Premium Plan, the adjustment amount is spread over 5 years (or payable up to age 65, whichever is earlier).

For policyholders who are still paying premiums under the 10-Year Premium Plan, the adjustment amount is spread over 5 years.

For policyholders who have finished paying their premiums and those under the Single Premium Plan, they will need to make a lump sum payment for the premium adjustment.

(Please refer to the Reform Package sent by your respective insurer for more details on the premiums payable.)

In general, annual premiums payable are determined by your entry age when you join insurance schemes.  The lower the entry age, the lower the annual premium.  In order for you to enjoy the advantage of the new ElderShield scheme at an annual premium based on the original entry age when you first joined ElderShield, a premium adjustment is required. 

It will cost less to pay the premium adjustment than to pay the new annual premium for ElderShield400 based on your current age. MOH has worked with the ElderShield insurers to spread the adjustment premium over a period of 5 years to facilitate ease of payment by policyholders.

If you wish to join the ElderShield400 scheme, it would cost less to pay the adjustment premium (in 5 instalments or to age 65, whichever is earlier) in addition to the revised premiums at your original entry age than to pay the revised premiums at your current age.

Let us take a look of a 40-year-old male policyholder who joined the ElderShield300 scheme in 2002. In 2007, he will be 45 years old. He decides to upgrade to ElderShield400 which offers monthly payouts of $400 for 72 months.

The calculations below show the total premiums the policyholder will have to pay by the time he reaches age 65.

Option	Pay the new annual premiums and adjustment premiums based on original entry age.	Pay the new annual premiums based on current age.
Entry Age	40 years old	45 years old
Policy Duration	5 years	0 year
Annual Premium payable	$174.96 yearly till age 65	$217.53 yearly till age 65
No. of premiums payable till age 65	21 payments	21 payments
Premium Adjustment payable	$35.85 each year for 5 years	$0
Total premium payable till age 65	$174.96 x 21 + $35.85 x 5 = $3,853.41	$217.53 x 21 = $4,568.13
Difference	$714.72

(Note: The premiums quoted are inclusive of 7% GST.)

As it can be seen from the example above, it is more beneficial for the existing policyholders to pay the revised annual premiums and adjustment premiums based on their original entry ages rather than cancelling their current policies and re-entering the ElderShield scheme at their current ages.

(Please refer to the Reform Package sent by your respective insurer for more details on the premiums payable.)

You can use your Medisave to pay for your ElderShield premiums.  If you do not have enough Medisave savings, you may also use the Medisave Accounts of your spouse, parents, children or grandchildren. You may also pay by cash.

The subsidies were given out at the initial launch of ElderShield to assist the elderly in paying their premiums. The subsidies were only applicable to Singaporeans aged 56 to 69 (as at 30 September 2002). By 30 September 2007, only those currently aged 66 and above will still be entitled to receiving subsidies for 1 to 5 more years (depending on their number of years of entitlement at the initial launch of ElderShield).

The level of subsidies will remain the same regardless of whether you choose to upgrade your ElderShield plan or not.

Your revised premiums will take effect upon your current policy renewal if you choose to upgrade to the new improved ElderShield400 scheme. If you are still paying premiums, the revised premiums will be based on the age when you first joined ElderShield.

Your upgraded coverage of monthly payouts of $400 for 72 months will take effect once you start the first payment of the revised annual premium and the adjustment premium.

If you joined ElderShield under the Initial Cohort (i.e. in September 2002), you will have up to 6 months after your policy renewal date, or until 31 March 2008, to decide if you wish to upgrade.
If you joined ElderShield under the Steady State Cohorts (i.e. in October 2002-August 2007), you will have 3 months after your policy renewal date to decide if you wish to upgrade.
However, if you decide not to upgrade but subsequently change your mind after the above deadlines, you can separately increase your coverage by purchasing an ElderShield Supplement.

In general, we advise policyholders to stay with their existing insurers if they wish to join the new ElderShield scheme.  If you change your insurer, you will lose the premiums you have already paid and will be regarded as a new application by the second insurer. You may then need to undergo medical assessment in order to be accepted by the second insurer.

However, you can choose to purchase ElderShield Supplements from any of the approved ElderShield insurers (please refer to the section on ElderShield Supplements).

Yes, you can choose to remain on your current ElderShield policy (i.e. ElderShield300). If this is the case, you should not send in any Upgrade Form. Your policy will continue to be renewed automatically under your current benefit of monthly payouts of $300 up to 60 months. As you have chosen to stay with your existing ElderShield coverage, your premium payable remains unchanged. If you choose not to upgrade to ElderShield400, you can still purchase ElderShield Supplements to enhance your coverage.