Long-term care planning: Why financial protection is only part of the picture

Long-term care planning is crucial, as severe disability can lead to years of caregiving needs and financial demands. While weddings, home purchases, and children are commonly planned for, preparing for the possibility of needing long-term care often goes overlooked. In Singapore, one in two residents may develop severe disability in their lifetime.

The costs can be significant, with treatment and recovery from a critical illness averaging 27 months and S$169,000. Three in five family caregivers draw on their own savings to help cover these expenses, making it vital for families to consider how they will fund recovery, replace lost income, and meet care needs if a serious illness affects a loved one's independence.

Long-term care costs can extend beyond hospitalization and medical expenses, requiring additional financial resources for mobility aids, home nursing, professional caregivers, and senior care center services. A recent white paper found that 57% of Singaporeans underestimate the cost of long-term care, averaging S$2,952 a month over a 10-year period.

Even with enhancements to CareShield Life, the basic payouts may not cover the full cost of long-term care. Families can supplement CareShield Life with private insurance options, such as Singlife CareShield Standard and Plus, to provide additional monthly payouts up to S$5,000 for severe disability. These plans can be paid for using MediSave, with premiums potentially waived if a policyholder develops a mild disability.

Supplementary coverage at a younger age may result in lower premiums. Beyond financial protection, Singlife Care Collab offers a one-stop health services hub to connect policyholders with healthcare providers and support services, easing the burden on families during recovery from disability.