Aviva today unveils its ElderShield Supplementary Plan. Named MyCare, the plan is designed to provide one simple and flexible solution catering to the increasing and varied needs of Singaporeans who are looking for better coverage.
Aviva Announces ElderShield Supplementary Plan
Aviva today unveils its ElderShield Supplementary Plan. Named MyCare, the plan is designed to provide one simple and flexible solution catering to the increasing and varied needs of Singaporeans who are looking for better coverage. It enhances the basic ElderShield plan by giving policyholders the option of lifetime benefits. Furthermore, policyholders can opt for a limited or an ongoing premium payment term. Aviva has also introduced a unique Rehabilitation Benefit that will continue to provide 50% of the Severe Disability monthly benefit when a policyholder's condition improves. MyCare's premiums remain level and do not increase with age, similar to the basic ElderShield policy.
With the option of lifetime benefit payouts, it means that policyholders will continue to receive their monthly payouts for the rest of their lives, as long as the severe disability persists. This eliminates any concerns they might have of outliving their benefits. Alternatively, they can opt for a 12-year payout duration.
The flexibility of MyCare extends even to the premium payment term. Policyholders can decide if they want to stop paying at age 67 (next birthday), subject to a minimum of 20 years, or opt for ongoing premiums.
Guaranteed lifetime coverage remains a constant. Regardless of the plan policyholders opt for; they can make a claim at any age, should severe disability strike. With as little as S$326.30 per year, a 40-year old male can top up his cover to S$1,000 per month for an unlimited payout period.
Keith Perkins, chief executive Officer, Singapore, Hong Kong & Middle East, Aviva Ltd, said: "With the longer lifespan of Singaporeans, Aviva's MyCare was designed to be flexible and cost-effective so that it can affordably meet the needs of Singaporeans. Our market experience and expertise enabled us to submit the most competitive base plan bid. This resulted in Ministry Of Health awarding Aviva with 50% of all new ElderShield members. Aviva now brings Singaporeans the most attractive supplementary ElderShield plan as well. This is another step closer to our aim of being viewed as the natural enhancement to CPF."
Besides lengthening the payout duration and increasing benefit amounts, MyCare has also brought in other benefits to address the needs of policyholders in the event of severe disability.
One of the key concerns that most people might have about the basic ElderShield plan is that when one starts to recover from severe disability, he is no longer eligible for claim even though he may still require special care to aid his recovery process. Currently, the ElderShield scheme works on the basis of providing benefit payouts when one is unable to perform at least three of the six Activities of Daily Living (ADLs) - washing, dressing, feeding, toileting, mobility and transferring. MyCare addresses this need with its unique Rehabilitation Benefit, where policyholders can continue to receive 50% of their Severe Disability monthly benefit under MyCare after a severe disability claim, if they are unable to perform at least two ADLs.
MyCare also includes a Dependant Care Benefit that pays out an additional $200 per month for up to 36 months to policyholder with a child 21 years old and below at the point of claim. Other benefits include a Lump Sum Benefit of three times the eligible Severe Disability monthly benefit at the first payout to help policyholders manage the initial costs of severe disability. Another three times of the last drawn monthly benefit is payable upon death, while in claim, with MyCare's Death Benefit. Policyholders will also enjoy privileges from National Healthcare Group (NHG) for health screenings and caregiver workshops as well as pharmaceutical needs.
Policyholders under the old basic ElderShield scheme (S$300 per month benefit payable up to five years) need not upgrade to the enhanced ElderShield scheme (S$400 per month benefit payable up to six years) before they can purchase MyCare. Premiums, however, will differ. Existing policyholders of basic ElderShield policies with any of the other two insurers can buy MyCare.
MyCare's premiums are payable by Medisave, of up to S$600 per year per life assured. Policyholders can also use the Medisave Accounts of their spouse, parents, children or grandchildren.
MyCare will be available from 8 October 2007.
-ends-
This piece of communication is not a contract of insurance. The standard terms and conditions of this plan are provided in the relevant policy contract.
For more information, please contact:
Angela Tan
Aviva Ltd
137 Cecil Street #10-00 Aviva Building, Singapore 069537
DID: +65 6216 7615
Mobile: +65 9878 6818
Fax: +65 6216 7608
E-mail: angela_tan@aviva-asia.com
Wang Huay Ching
Aviva Ltd
137 Cecil Street #10-00 Aviva Building, Singapore 069537
DID: +65 6216 7626
Fax: +65 6216 7608
E-mail: huayching_wang@aviva-asia.com
Notes to editors:
About Aviva
Aviva is the world's fifth-largest insurance group, and the biggest in the United Kingdom. The company provides long-term savings, fund management and general insurance. Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of S$121.6 billion and assets under management of S$1,092 billion at 31 December 2006.
About saffron hill research pte ltd
Saffron Hill Research is a full serviced market research agency based in Singapore, Malaysia and the Philippines. The agency handles all types of consumer research across various industries.
Appendix 1
Benefits at a glance
Appendix 2
Case Study
- Illustration of lifetime benefit with limited premium option
Assuming a 40-year-old male has a basic ElderShield policy with payout of S$400/mth up to 72 months (six years). He buys MyCare with a monthly benefit of S$800/mth with MyCare, choosing the option of unlimited benefit payout duration with limited premium payment term (till age 67 next birthday). At the point of claim, his child is 21 years old.
| Benefits | MyCare payouts |
| Severe Disability Benefit 1st 72 months Subsequently | $400/mth ( + $400/mth basic ElderShield payout) $800/mth |
| Rehabilitation Benefit 1st 72 months Subsequently | $200/mth $400/mth
|
| Dependant Care Benefit | $200/mth up to 36 months |
| Lump Sum Benefit | $1,200 (one-time payout) |
| Death Benefit While receiving Severe Disability Benefit 1st 72 months Subsequently While receiving Rehabilitation Benefit 1st 72 months Subsequently | $1,200 (one-time payout) $2,400 (one-time payout) $600 (one-time payout) $1,200 (one-time payout) |
His total premiums = $14,679.10 ($10,305.10 MyCare premiums, $4374 basic ElderShield premiums)
His benefit payout in the first 72 months for Severe Disability = $66,000 ($28,800 basic ElderShield payout, $28,800 MyCare payout, $1,200 MyCare Lump Sum Benefit, and $7,200 MyCare Dependant Care Benefit)
From the 73rd month onwards, his benefit payout = $800/mth for an unlimited term (Severe Disability Benefit), or $400/mth for an unlimited term (Rehabilitation Benefit).