Why AVIVA MyLongTermCare To Add To Your Careshield Life Coverage!

1 October 2020, all Singapore residents between 30 to 40 years old will start paying premiums from medisave and be included in this Careshield Life. 

To start things with, the definition for payout is on "Activities Of Daily Living" (ADL) as shown below.

In this analysis, I'd be sharing points why AVIVA MyLongTermCare may be better to increase your coverage for long term care needs. Careshield life provides amounts from $600/m which is insufficient for nursing home cost and barely sufficient to employ a maid. 

I'd be comparing vs NTUC INCOME CARE SECURE which is an alternative plan and highlighting four key differences. You should note that the maximum amount that you can use from the CPF MediSave account(s) to pay for CareShield Life Supplements is S$600 per insured per calendar year.

Key Difference 1: AVIVA MyLongTermCare payout is for at least 3/6 ADL

AVIVA MyLongTermCare pays for 3/6 ADL only.

This means it requires one more ADL for claims as compared to MyLongTermCare Plus and NTUC INCOME Care Secure. However, it also means cheaper premiums.

Key Difference 2: AVIVA MyLongTermCare and AVIVA MyLongTermCare Plus payouts are in addition to Careshield Life amounts and can be escalating

The design from AVIVA is in addition to Careshield Life payouts which is easy to understand. NTUC INCOME Care Secure pays in total the sum assured with Careshield Life factored in.

Both AVIVA MyLongTermCare and AVIVA MyLongTermCare Plus have escalating benefit option of 2% or 3% to match inflation needs.

Key Difference 3: AVIVA MyLongTermCare and AVIVA MyLongTermCare Plus has 20y limited pay periods for age49 and above OR pay till ANB98

If you are aged 49 and above, you can consider stretching premium duration further with AVIVA's plans.

For all ages, the option to stretch premium to ANB98 is available as compared to NTUC INCOME Care Secure which is till age84.

AVIVA MyLongTermCare and MyLongTermCare Plus both have waiver of premium from 1 ADL which is better than NTUC Care Secure.

It is also worth nothing all 3 plans in this discussion pay death benefit.

Key Difference 4: AVIVA MyLongTermCare and AVIVA MyLongTermCare Plus has guaranteed issuance option 

With AVIVA MyLongTermCare and MyLongTermCare Plus, you can exercise this option without providing further evidence of insurability at any of the following life stage events when the Life Assured:

a) purchases a property;
b) marries, divorces or is widowed;
c) becomes a parent by having a newborn child, or legally adopts a child below 19 ANB;
d) salary increases by 50% or more from application;
e) completes a skills development course of at least 6 months;
f) purchases a new Individual Life insurance policy or a Supplementary Benefit from Aviva Ltd with full underwriting at standard terms; or
g) spouse suffers a severe disability (with the inability to perform at least 3 of the 6 ADL) or dies.

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The total monthly benefit that can be increased under this option is limited to 50% of the Policy initial monthly benefit as agreed at policy inception or at the date this option is exercised, whichever is lower.

This option is extended to standard life only. 

AVIVA MyLongTermCare and MyLongTermCare Plus have more flexibility and on the 4 highlighted differences seem to offer more value.

There is a 20% perpetual discount promotion in this current period as shown above.

Careshield life provides amounts from $600/m which is insufficient for nursing home cost and barely sufficient to employ a maid. 

Premiums for male age35 MyLongTermCare Plus

- with level premium Up to age99, premium = $548.91/y (before discount)

- with 2% escalating Up to age99, premium = $727.60/y (before discount)

- with 3% escalating Up to age99, premium = $854.93/y (before discount)

As there are limited premium options also and MyLongTermCare options to consider, there are many variations of potential cover. Age and gender also changes the premium.

Conclusions and this is what I'd buy

Personally, I'd buy the plan with premium till age99.

I'm more inclined towards MyLongTermCare Plan with level benefit.

Coverage benefit at $1,600/m. Premium will be $749.86/y and with discount $599.89/y