CareShield Life is Singapore’s long-term care insurance scheme designed to provide lifelong financial protection for individuals who become severely disabled. Introduced in 2020 to replace ElderShield, it ensures that citizens receive monthly payouts that grow over time to meet rising care needs and inflation.
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Starting in 2026, the Government will roll out major updates to the scheme increasing both payouts and premiums by 4% annually. These adjustments aim to make the program more financially sustainable and adequate, especially as Singapore’s population ages.
Overview: Purpose and Role of CareShield Life
CareShield Life acts as a financial safeguard for Singaporeans who face severe disabilities. It provides monthly payouts for life, reducing the burden of long-term care expenses.
The scheme was created to ensure that no citizen faces financial ruin due to the cost of disability-related care. It covers individuals who are unable to perform at least three out of six Activities of Daily Living (ADLs)Â washing, dressing, feeding, toileting, walking, and transferring.
By providing lifelong payouts that increase annually, CareShield Life eliminates the fear of running out of funds during prolonged disability.
Quick Summary
Item |
Details |
|---|---|
Change Effective Year |
2026 |
Annual Growth Rate |
4% for both payouts and premiums |
Current Monthly Payout |
S$662 (as of 2025) |
Projected 2026 Payout |
About S$704 per month |
Projected 2030 Payout |
About S$824 per month |
Government Support |
S$570 million in subsidies (2026–2030) |
Eligibility |
All Singapore Citizens and PRs born in 1980 or later (automatic enrollment) |
Official Site |
Eligibility and Enrollment Criteria
Automatic Enrollment
- Singapore Citizens and Permanent Residents born in 1980 or later are automatically covered under CareShield Life once they turn 30.
- Enrollment applies even to individuals with pre-existing health conditions.
Voluntary Enrollment
- Those born in 1979 or earlier may choose to join if they are not severely disabled at the time of application.
- Individuals covered under ElderShield 400 were automatically enrolled into CareShield Life from December 2021.
Once enrolled, coverage continues for life. Policies cannot be canceled after the 60-day free-look period.
Updated Payout Structure (From 2026)
When CareShield Life was launched in 2020, the initial monthly payout was S$600, with an annual growth rate of 2%. By 2025, payouts have increased to S$662.
Starting 2026, payouts will grow at 4% annually to provide higher financial adequacy.
Example Projections
Year |
Approximate Payout (S$) |
Growth Rate |
|---|---|---|
2020 |
600 |
2% |
2025 |
662 |
2% |
2026 |
704 |
4% |
2030 |
824 |
4% |
Once a person begins receiving payouts, they will continue for life, and no further premiums need to be paid.
This rising payout schedule is designed to offset inflation and meet the increasing costs of long-term care services.
Premium Structure and Growth Pattern
CareShield Life premiums vary based on age, gender, and cohort. Payments are automatically deducted from an individual’s MediSave account, and family members can use their MediSave to help pay for others’ premiums.
From 2026 onward, premiums will grow by 4% annually, up from the current 2%. This ensures that payouts remain sustainable and relevant to future care needs.
Year |
Annual Growth Rate |
Applies To |
Purpose |
|---|---|---|---|
2020 |
2% |
Premiums and Payouts |
Launch Phase |
2025 |
2% |
Premiums and Payouts |
Final Year of Current Rate |
2026 |
4% |
Premiums and Payouts |
Sustainability Adjustment |
2030 |
4% |
Payouts Only |
Maintain Adequacy |
Those who begin receiving payouts will be exempt from paying future premiums.
Government Support and Subsidy Measures
To keep CareShield Life affordable, the Government will allocate S$570 million in support between 2026 and 2030. This includes transitional aid and subsidies for lower and middle-income households.
Support Type |
Amount (S$ million) |
Description |
|---|---|---|
Transitional Support |
440 |
Temporary relief to offset rising premiums |
Means-Tested Subsidies |
130 |
For lower- and middle-income policyholders |
Total |
570 |
Combined financial assistance package |
In addition, participation incentives are provided for individuals who join early. Eligible participants receive annual bonuses over a period of ten years to encourage enrollment and retention.
Claims and Assessment Process
A policyholder can make a claim when certified as severely disabled by a Ministry of Health (MOH)-accredited assessor.
Activities of Daily Living (ADLs)
- Washing
- Dressing
- Feeding
- Toileting
- Walking or Moving Around
- Transferring (from bed to chair)
Assessments cost S$100 for clinic visits and S$250 for home assessments. The first assessment fee is reimbursed upon claim approval.
Once approved, payouts are made monthly for life. From 2026, these payouts will increase at 4% annually to stay aligned with inflation.
Non-Payment Policies and Enforcement
Premium payments are managed by the Inland Revenue Authority of Singapore (IRAS).
Defaulters may face:
- 5% late payment penalty after one year of non-payment.
- Recovery of dues through employers, banks, or tenants.
- Travel Restriction Orders until dues are cleared.
However, coverage will not be terminated due to financial hardship. Government assistance ensures continued protection for all citizens.
Scheme Performance and Participation
As of 2025:
- Over 1.9 million people are covered under CareShield Life.
- Around 1,800 claimants have received S$26 million in payouts.
- Premiums collected total S$2.8 billion, with an additional S$800 million contributed by the Government.
The 2026 enhancements including higher payout growth, stronger subsidies, and refined eligibility aim to make the scheme more resilient and effective in supporting Singapore’s aging population.
Strengths and Challenges
Strengths
- Lifetime coverage with guaranteed monthly payouts.
- Automatic enrollment for younger cohorts ensures broad national protection.
- Growing payouts that address inflation and rising care costs.
Challenges
- The eligibility threshold (three ADLs) may exclude moderately disabled individuals.
- Rising premiums could still affect middle-income households, despite subsidies.
Frequently Asked Questions (FAQs)
1. What is CareShield Life?
CareShield Life is Singapore’s national long-term care insurance scheme that provides lifetime monthly payouts for individuals who become severely disabled and cannot perform at least three out of six Activities of Daily Living.
2. Who is automatically covered?
All Singapore Citizens and Permanent Residents born in 1980 or later are automatically covered once they turn 30, regardless of pre-existing health conditions.
3. How are premiums paid and adjusted?
Premiums are deducted from MediSave and will grow at 4% annually from 2026. Once payouts begin, premium payments stop permanently.
4. What if I cannot afford to pay premiums?
Government subsidies and MediSave transfers from family members can be used. Coverage remains active even in cases of financial hardship.
5. How do I make a claim?
Claims can be submitted via the Agency for Integrated Care (AIC) after assessment by an MOH-accredited assessor confirms severe disability. Approved claims receive monthly payouts for life.
Official Website
Visit the official portal for details, eligibility checks, and application assistance:
https://www.careshieldlife.gov.sg
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