CPF Life and CPF Medishield Life
It is brought to our attention via our forum (check it out here!) that there is some confusion about the two due to the similar names.
While the hazy conditions in Singapore worsens, we hope we may be able to resolve the foggy state of our forum contributor’s mind
As CPF Medishield Life is a new scheme by government, we are not going to dive deep into the details. Therefore we shall tabulate it alongside CPF Life for easy comparison.
|CPF Life||CPF Medishield Life|
|Purpose||A retirement annuity plan that pays you a monthly sum after you have reached the age of 65||It is a basic hospitalization plan to help defray your healthcare cost
A replacement for CPF Medishield, the new CPF Medishield Life has better protection and higher payout for all Singaporeans and PR.
|Premium||Paid via CPF Retirement Sum Scheme|
Retirement Sum Scheme draws from your Ordinary (OA) & Special (SA) accounts after you have turned 55.
|Payable via CPF Medisave
|Plan choices||Two plans - Standard & Basic |
Standard plan has highly monthly payout. However, the bequest amount (monies passed onto your beneficiaries will be less)
Basic plan is the opposite - lower monthly payout and high bequest amount.
|No, CPF Medishield Life scheme is a standard package for all.
If you wish to have higher coverage (private hospital or A/B1 government hospital wards), you will have to enhance your coverage by buying a relevant policy from private insurer
|Is it compulsory?||Yes to all Singapoeans & PR and if you have sufficient amount in your Retirement Account (see Annex 1) after you turned 55.||Yes to all Singapore Citizen & PR
|How to apply?||If you turn 55 before 1 July 2015, CPF Board will send you a letter to choose your CPF Life plan one month after your 55th birthday. You have six months to choose your plan. |
If you do not choose a plan, CPF Board will place you on the CPF Life Standard Plan.
|You are automatically enrolled.|
Any further questions ? Don’t be shy.
Leave us your comments or join us at our forum.
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.