Disability isn’t just a concern for our golden years; it’s a risk that can strike anyone at any time often with devastating financial consequences. For Singaporeans and PRs, securing our financial future against disability is incredibly important. This is where CareShield Life supplements become a vital safety net. Let’s discuss why disability income must be part and parcel of your financial planning. This blog post is for all working adults who do not wish to become destitute without a plan, depleting savings, or becoming a burden to family.
The Unseen Threat: Disability Trends in Adults
While we often associate disability with old age, data shows a different picture. According to the Ministry of Social and Family Development’s Disability Trends Report 2024, physical disability was the most common type among persons with disabilities (PwDs) in Singapore. While the proportion is highest among those aged 65 and above, it’s crucial to note that adults aged 19-34 also face a significant risk. In fact, physical disability is particularly prevalent among those aged 50 and above. This is precisely when many are in their highest earning years, diligently building up their retirement nest egg. A severe disability at this stage could entirely derail your retirement plans, forcing you to eat into hard-earned savings, liquidate investments, or even surrender retirement policies just to manage long-term expenses.
Rising Road Traffic Accidents
Road accidents remain a concerning factor for all. The Singapore Police Force’s Annual Road Traffic Situation 2024 reported an increase in traffic accidents resulting in injuries and fatalities. Pedestrians and motorcyclists continue to be the most vulnerable road users. A careful pedestrian may be unfortunate to meet with an careless driver. If you ride a motorbike or often a pillion, you don’t need me to tell you the inherent risks of road accidents!
For more details on specific coverage for motorcyclists and pillions, please read my dedicated blog post on insurance coverage for motorbike riders and pillions here.
Disability Strikes Healthy Adults Any Time
The Handicaps Welfare Association (HWA) states that acquired physical disability is not just an age-related concern; it can abruptly affect even healthy adults at any stage of life. This can manifest through traumatic events like the loss of a limb from a severe accident, or as a debilitating consequence of certain infectious diseases. Moreover, conditions like a stroke, often precipitated by high blood pressure, stress, and unhealthy habits, can suddenly strike, leaving individuals with a lifelong impairment. These are future worries and immediate risks that can change your life’s course in an instant.
Don’t Risk Your Highest Earning Years
Imagine losing your job and facing rising medical and care expenses during your peak earning years due to a sudden disability. This may seem unlikely for but still a reality. Basic CareShield Life provides a foundational level of financial protection of $612 to $662 for 2025. With 2% increment every year, it sounds good doesn’t it? However, the basic payouts is far from sufficient to cover long-term care costs, especially with rising inflation and the desire for higher quality care. Lets break it down using today’s costs:-
- Hiring a helper to unburden your spouse – $800 per month
- Day care centre (exclusing transport) – $900 to $1,500 per month
- Physical theraphy – $80 to $300 per session
- Institution care – $1,300 to $3,000 per month
Enhancing Your Protection with CareShield Life Supplements
This is where CareShield Life supplements come into play. These private plans by insurers enhances your coverage significantly:
- Higher Monthly Payouts: Supplements offer higher monthly payouts to help cover the actual costs of long-term care
- Lower Payout Thresholds: While basic CareShield Life requires you to be unable to perform at least three out of six Activities of Daily Living (ADLs) to qualify for payouts, supplement plans offer payouts from just one ADLs providing earlier financial support!
- Additional Benefits: Many supplement plans provide valuable additional benefits:
- Lump Sum Initial Benefit: A one-time payment to help with immediate costs like home modifications or initial care services.
- Caregiver Benefit: Financial supportto cover caregiving costs.
- Dependent Care Benefit: Assistance for those who have dependents relying on their income.
Although you can use up to $600 of your MediSave per year to pay for CareShield Life supplement premiums, don’t stop there! Plan your disability income to meet your needs by topping up with cash premiums. Lets explore below.
Planning for the Unexpected: Aim for Half Your Income
It’s wise to enhance your CareShield disability income to at least half of your current salary. For instance, if you earn $4,000, aiming for a coverage of $2,000 per month for a significant safety net. This ensures that you have a substantial income stream to rely on if you are unable to work.
In conclusion, disability is a shared risk and planning for it should be a shared discussion. Talk to your partner, family, and close friends about your disability plan. Understand the potential impact and have a robust financial strategy in place. With CareShield Life supplements, it offers immense peace of mind and lifestyle protection, no matter what life throws your way.
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