Monday, May 28, 2018

Careshielf Life ...another 'helping us' scheme to load up CPF coffer

Seems like what started out as voluntary scheme in CPF always end up being compulsory.  The latest being Eldershield renamed as Careshield Life. So they claim that it is a better scheme as payout is for life - if one meets the criteria of unable to do 3 basic daily activities such as feeding, washing, dressing, mobility, toileting and transferring.

What an irony, if one is so severely disable, one would wish to go earlier than to live longer to get more payout. Perhaps they should consider including legalizing euthanasia if they are serious about helping us. What is the point if our quality of life is at rock bottom.

The most important clause in the formal scheme remain untouched - criteria for claim eligibility. This has been a point of contention of the public as most likely to suffer 1 to 2 disability. To suffer from 3, is too strict a criteria.  Perhaps that is the reason the payout rate is so low since only a minority meets the claim criteria.

It is stated that there are 1.3 million Eldershield policy holders and the total premium paid is $3.3 billion, but payout is only $133 million ! So much profit perhaps that is the reason CPF taking over the scheme from the appointed 3 insurance companies.

It is not stated out of the 1.3 million policy holders the percentage that meet the claim criteria when they suffer from disability. Their biggest 'selling' point in this new scheme is the life payout if one is disable.  But what is the point if one can't even meet the criteria for claim.

In the old scheme, the payout is for 6 years because they told us that their statistic has shown that those who suffer from severe disability die within 6 years.  Now they tell us this scheme is so 'good' as it is life payout. But likely most will still go to heaven within 6 years and CPF coffer will be loaded  with premium paid.

Besides premium being higher in Careshield life, premium payment is 12 yrs longer than the previous scheme.  The premium also gets higher each year (unlike previous scheme, premium fix at joining age).  Only the first five year premium is made known to increase by 2 % each year after that it is unknown. Oh yes - there is some subsidy which will last for 5 years - this has always been the 'carrot' they offer us whenever they come out with some new scheme or increase taxes...etc.

They said that the opt out rate for the old scheme has been stable at 5%.  So if the new scheme is so good - why make it compulsory?  Wouldn't everyone rush to join in even if it is to remain voluntary?

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