26 Apr 2024
SOURCE: CPF Board

Life is a shared journey. Along the way, we encounter situations where we rely on others for support. Everyone has different needs, and at times, this may involve depending on others for extended care. Caregivers dedicate a large amount of time and effort to the noble act of caring for others. However, it is important to remember that they too require care and support. 

There are various forms of support available for caregivers to help offset both present and future expenses. These include insurance payouts that provide basic financial protection for their loved ones, as well as financial schemes for the caregivers.

Insurance to protect your loved ones

Home Protection Scheme (HPS)

Caregivers often worry about what would happen to their loved ones if something unexpected happens to them. Unpaid housing loans can result in additional financial burden on their loved ones. To help alleviate this concern and provide peace of mind, the HPS provides support in such situations.

The HPS is a mortgage-reducing insurance that safeguards you and your loved ones from losing your HDB flat in the event of death, terminal illness, or total permanent disability. HPS insures you until you turn age 65 or until your housing loan is paid up, whichever is earlier. If you own an HDB flat and are paying your housing loan’s monthly instalments using CPF savings, you are required to apply for the HPS.

What do you need to know?

Besides providing peace of mind to those insured, another key benefit of the HPS is its convenience. In the event of a claim for an outstanding mortgage settlement, HPS will settle the outstanding housing loan up to the insured sum, with HDB or the mortgagee directly.

HPS premiums are also affordable, as it has one of the lowest rates on the market. These annual premiums are also automatically deducted from your Ordinary Account (OA), removing the need for payment forms or long procedures. For caregivers who are pressed for time, you can rest easy knowing the process is hassle-free!

While HPS is not required if you are using cash to service the mortgage for your HDB flat, we strongly encourage you to apply. When you apply for the HPS, it is also important to keep in mind that any insurance claim will be rejected if there is any false or misleading information submitted during the application. Hence, it is important that you declare your health conditions truthfully when applying for the HPS.

If you are a new HPS applicant, the HPS premium calculator is a tool you can use to calculate how much premiums you are expected to pay. In order to use this calculator, you will need to provide the details of your home loan, such as the loan amount, loan term as well as the type of interest rate (HDB concessionary rate or market rate).

Dependants’ Protection Scheme (DPS)

Another common concern for caregivers is the loss of access to income should anything happen to them. 

The DPS is a term life insurance scheme that provides basic financial protection for you and your family in the event of death, terminal illness or total permanent disability. It is solely provided by Great Eastern Life and is automatically extended to you upon a valid CPF working contribution if you are a Singapore Citizen or Permanent Resident (PR) aged between 21 and 65.

This allows you to enjoy insurance coverage in a hassle-free manner and as early as when you start working—while you are more likely to be healthy and insurable.

What do you need to know?

If you are working and have dependants who are relying on your income, or if you are a caregiver taking care of someone who is unable to care for themselves, DPS ensures you are not left without any support if you lose your income due to total permanent disability or a terminal illness.

This is especially important if you do not have enough savings to support your dependants. Not only does DPS include coverage for members up to age 65, it also has affordable yearly premiums from as low as $18 per annum.

While you can use your CPF savings or cash to pay for DPS premiums, the premiums will increase as you age. Even though DPS is automatically extended to you, you are still able to terminate your coverage at any time if you think you don’t require it (e.g. if you have no dependants.) You can do so by simply contacting Great Eastern Life. If you do terminate your coverage and wish to rejoin DPS, you will be required to submit a health declaration, as coverage will only be provided subject to your good health.

Healthcare protection insurance for caregivers

As a caregiver who takes care of others, your wellbeing and health should also be looked after. In the event that one is unable to work, the expenses incurred can take a toll on one’s financial status.

CareShield Life and ElderShield can help you with long-term care in the event of severe disability.

CareShield Life is a long-term care insurance scheme that provides basic financial support should an insured develop severe disability.

ElderShield is a basic long-term care insurance scheme targeted at severe disability, especially during old age. 

Until 2019, all Singapore Citizens and PRs with MediSave Accounts were automatically enrolled in ElderShield at the age of 40, unless they opted out of it. Starting in 2020, all Singapore Citizens and PRs born in 1980 or later are automatically covered under CareShield Life on 1st October 2020 or when they turn 30, whichever is later. For those who were born in 1979 and earlier, participation is optional.

What do you need to know?

In the event of severe disability, CareShield Life offers monthly cash payouts for life while ElderShield offers monthly payouts for up to five or six years, depending on the plan. CareShield Life and ElderShield also provide worldwide coverage, which means you are able to make claims, as well as receive payouts, wherever you reside—even if it’s not Singapore!

Both CareShield Life and ElderShield premiums are fully payable by your MediSave, and family members can also use their MediSave to help pay the premiums on behalf of you and other family members.

For ElderShield, the premium amount is determined at the age of entry and does not increase with age. These premiums are payable annually until the policy anniversary after your 65th birthday or when you make a successful claim, whichever is earlier.

On the other hand, CareShield Life’s monthly premiums differ for members born in 1980 or later, and those born in 1979 or earlier. Those born in 1979 or earlier who join at age 59 or older will pay premiums over 10 years, thereby helping to lower their annual premium payable so that it is more affordable and manageable. Learn more about the premiums that is applicable to your cohort.

You pay CareShield Life premiums from the time you join until age 67, and continue to be covered for life. The premiums are risk-pooled to cover the current and future claims of your generation, ensuring everyone's needs are taken care of. The Government also provides subsidies and support to make sure the premiums remain affordable. Rest assured, no one will lose coverage because they can't afford their premiums.

Other financial schemes for caregivers

Caring for others is an important role, but it should not also cause additional problems for the caregivers and those they take care of. In order to help alleviate these worries and allow caregivers to focus on their already heavy responsibilities, the schemes mentioned above seek to aid caregivers in their journey by providing support and peace of mind.

The information provided in this article is accurate as of the date of publication.