Should you buy the upgraded Eldershield?

Hi Mr. Tan
Currently I'm just going into understanding the ElderShield. On the surface, it looks good what the government has introduced - the Eldershield (ES) Scheme. It sounds timely, relevant and sufficient.

However, there has been so many calls from telemarketing/insurers to advice us to upgrade the ES coverage. So, I'm really confused now. I need to understand the ES properly and know the loopholes of this before engaging another party.

Last year, I had met with an AVIVA officer (at random) last year and he gave a good impression that he was sincere, and he also explained and had me understand that it makes more sense to use the premium (which I cannot take out) to upgrade on the ES coverage.

I know once I sign up I may regret it without knowing the loopholes further. However, I'm unable to breakdown the levels of loopholes in all this schemes due to lack of experience and foresight. So, if you are able to share more on this, I would greatly appreciate it.

REPLY
The telemarketers and agents want to earn an attractive commission by selling the upgraded Eldershield to you.
The insurance companies make a big profit margin on this product.

So, the consumers are paying a high premium and getting back only a small percentage back as claims. It is better for consumers to keep their money in the CPF to earn 4% interest. When they make a claim at an advanced age, they can draw out the money from the CPF.

Keep the money for yourself. Don't give it to the insurance company as profit.