Those 40 and over can upgrade to CareShield Life in 2021

People aged 40 years and older who are on ElderShield and want to upgrade to CareShield Life will be able to do so from 2021, the year following the launch of the new long-term care insurance.

They will need to pay more in premiums as the payout from the new government-run scheme will be at least 50 per cent higher, and will be for life instead of just six years that ElderShield offers.

Those who have opted out of ElderShield may choose to join, but they must not already be suffering from severe disability.

How much they will need to pay will be announced later.

There will be no obligation for people who are over 40 years old in 2020 to join the scheme, which will be compulsory for those aged 40 and younger.

Mr Chaly Mah, who headed the ElderShield Review Committee, said the report recommends that existing cohorts should join and that the Government offer them "incentives and subsidies" to do so.

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It also suggested that for these people, premium top-ups should be paid over five to 10 years, even if doing so means that people will be paying beyond the re-employment age of 67 years.

It said: "This is a reasonable and effective design to lower the annual premiums payable, so that more Singaporeans in existing cohorts would consider joining the enhanced scheme."

Mr Mah said that even those who have opted out of ElderShield should be allowed to join CareShield Life.

Health Minister Gan Kim Yong gave an assurance that the Government will provide subsidies and incentives to encourage older cohorts to join CareShield Life, which offers better and longer payouts.

He said there will be no age limit for older people to join the scheme. "But for older folk, the premiums will be quite significant. The older you are, the more challenging (it is) to join the scheme," he said.

ElderShield has been around since 2002, with people aged 40 automatically included unless they opt out. Recently, the opt-out rate has stabilised at around 5 per cent.- SALMA KHALIK