What is CareShield Life?
CareShield Life is a long-term care insurance scheme designed to provide financial support to individuals who are severely disabled and require long-term care. This scheme is open to all Singaporeans and Permanent Residents with enrolment being optional or automatic, depending on the year you were born:
- For individuals born in or after 1980: enrolment is automatic and compulsory from 1 October 2020 or when you turn 30 (whichever is earlier).
- For individuals born in or before 1979: enrolment is optional. Individuals born between 1970 and 1979, insured under ElderShield, and have not developed any disability are automatically enrolled into CareShield Life from December 2021. Individuals who were not automatically enrolled can enrol online through their Singpass.
CareShield Life is part of the government’s efforts to enhance the long-term care support system and ensure that Singaporeans have a safety net in place for their future care needs.
What does CareShield Life cover?
CareShield Life provides financial support for individuals with severe disability that require long-term care. Severe disability is characterised by the inability to perform at least three out of the six daily living essentials, these are:
Bathing
Eating
Transferring (moving around)
Dressing
Toileting
Continence (controlling body functions)
How does CareShield Life work?
- Premiums are deducted from your Central Provident Fund (CPF) MediSave account.
- The premium amount depends on your entry age when you start contributing, for example, premiums are either paid for in 10 years (if the beneficiary joins at or after 67) or until the beneficiary reaches the age of 67.
- There are government subsidies available to help make premiums more affordable, especially for those who join at a younger age. Subsidies are available to both Singaporeans and PRs, with PRs receiving half the subsidy amount compared to Singapore Citizens.
Examples of government subsidies available to Singapore Citizens include:
- Means-tested premium subsidies: available for lower- to middle-income households. The subsidy rates you receive depend on your monthly Per Capita Household Income (PCHI). Households with a PCHI of $1,200 or less receive the maximum subsidy.
- Subsidies based on property value: full subsidy rate applies to those living in residences with an Annual Value (AV) of $21,000 or less. Reduced subsidy applies to those living in residences with an AV between $21,001 and $25,000. No subsidy is provided for those living in residences with an AV above $25,000 or who own multiple properties.
- You will receive monthly payouts for as long as you are severely disabled and unable to perform at least 3 out of the 6 daily living essentials.
- Payouts start at a base rate and increase annually until you reach age 67 or make a successful claim, whichever comes first (payouts increase 2% annually from 2020 to 2025).
- Once you receive a payout, the amount becomes fixed for the rest of the time you are considered severely disabled.
- As of 2024, the monthly payout is $649.
- To make a claim, you or your family will need to submit a medical report from a qualified doctor verifying your severe disability and inability to perform the required ADLs.
- Once approved, you will start receiving the monthly cash payouts.
Benefits of CareShield Life
Frequently asked questions
Yes, CareShield Life is compulsory for Singaporeans and Permanent Residents born in 1980 or later. If you are born in 1979 or earlier, you have the option to join the scheme, provided you are not severely disabled.
CareShield Life provides long-term disability coverage, offering monthly payouts if you become severely disabled and need assistance with daily activities. In contrast, MediShield Life is a basic health insurance plan that helps cover large hospital bills and certain outpatient treatments. While MediShield Life is designed for acute medical expenses, CareShield Life focuses on financial support for long-term care.
CareShield Life is a long-term care insurance scheme that provides monthly payouts in the event of severe disability, where an individual is unable to perform at least three out of six Activities of Daily Living (ADLs), such as bathing, dressing, and feeding. The payouts increase over time and continue for as long as the disability persists.
Yes, CareShield Life can be beneficial, especially for individuals concerned about the financial burden of long-term care. The scheme provides lifelong coverage and increasing payouts to help with caregiving expenses. While participation is mandatory for younger Singaporeans, older individuals can choose to opt in based on their financial planning needs.
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