7/2/2018 5:03:03 PM
|written By : Team India Se|
The Singapore government has denied a text message circulating on messaging platforms that CareShield Life was introduced by the government to reap profits off Singaporeans.
The government said it would not profit from CareShield Life. The premiums collected and returns from investments would stay within the fund so that policyholders could benefit through higher payouts or premium rebates.
The government also refuted the claim that the number of people who suffer from severe disability in old age is very few.
One in two Singaporeans who is healthy at age 65 could become severely disabled later, the government said. “This is backed by evidence,” it added. “From 2013 to 2017, the annual claims paid out have risen more (up by 12%) than the annual premiums collected (up by 3%). This trend is expected to continue as more Singaporeans enter their silver years.”
The government said: “Coupled with shrinking family sizes, it will be challenging to rely solely on personal and family savings to pay for one’s long-term care needs.”
“Schemes like ElderShield and the new CareShield Life will ensure that Singaporeans are protected against the variability in duration and the cost of long-term care needed. The government will also provide subsidies to ensure that CareShield Life remains affordable for all Singaporeans,” it added.