A Quick Guide To CareShield Life 2023
CareShield Life is known as a disability insurance scheme in Singapore which all Singaporeans and PRs are automatically entitled to, as long as you’re aged from 30 onwards. It is somewhat similar to government schemes like MediShield Life, but unlike MediShield Life, CareShield Life focuses on covering your long-term care needs if you become disabled due to old age or certain health conditions.
What Is CareShield Life About?
You’ve probably heard of the ElderShield scheme which was in place prior to the introduction of CareShield Life in 2020. CareShield Life was launched to replace the ElderShield scheme and made compulsory for most Singaporeans and PRs since then.
For Singaporeans and PRs, a maximum coverage amount of about $7,488 per year is provided (as the monthly payout is up to an estimated $624 in 2022, taking into account a yearly 2% increase), and you’ll be able to use your MediSave to pay for your monthly premiums and even for your family members.
Mandatory upon enrolment
Those who are born in 1980 and later are automatically covered with CareShield Life once they turn 30 years old, which makes it compulsory because you will not be able to opt out. However, if you’re born before 1980, it is optional for you as there is no age limit to apply for it. Older folks who are born between 1970 and 1979 will be insured by the ElderShield.
Inability to perform certain ADLs
You or your family member will only be able to receive the monthly payout if either of you get “severely disabled”. By CareShield Life’s definition, being considered “severely disabled” is the inability to perform at least 3 out of 6 Activities of Daily Living (ADLs) which include:
- Feeding – Feeding yourself readily available food
- Toileting – Going to the toilet to relieve yourself with the use of protective undergarments or surgical appliances (whenever needed)
- Washing – Taking a shower or bath independently (includes getting in and out)
- Dressing – Putting on and removing clothes, braces or other medical appliances
- Walking – Getting indoors from room to room on level surfaces
- Transferring – Transiting from a bed to a chair or wheelchair and vice versa
How Much Do CareShield Life Premiums Cost?
CareShield Life premiums start from $206 for men and $253 for women and you can expect your premium to increase by 2% every year until you turn 67 years old. Given that you can pay for your premiums using MediSave, it makes it pretty affordable.
The premiums will vary depending on your age and gender. If there are changes in your financial circumstances in the future, the Government subsidies you’ll be entitled to will change too.
Let’s use an example to illustrate. Assuming you’re a 30-year-old female who is married, employed and working full-time for over 7 years, without any severe health or medical conditions or disability. Your annual net premium payable will be about $214 (according to the CareShield Life Premium Checker which you can use with your SingPass log-in).
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Are CareShield Life Payouts Sufficient?
In the event that you become severely disabled and unable to do any of the ADLs as mentioned above, you are eligible for the monthly payouts which will increase year by year (refer to the table below). Your CareShield Life payout amounts will be fixed and will no longer increase once you’ve made a claim or reached the age of 67
Do take note that an adjustment of CareShield Life payouts will be done after a government review in 2026, so your CareShield Life payouts may differ from the current estimations.
Year - CareShield Monthly Payout
- 2022 - $624
- 2023 - $637
- 2024 - $649
- 2025 - $662
You may opt for a higher payout if the default CareShield Life scheme with the current monthly payouts of $624 is insufficient.
You may opt to enhance your CareShield Life by purchasing a CareShield Life supplement from the following insurer: Great Eastern, Singlife or Income Insurance (formerly known as NTUC Income). They offer a wider range of benefits which include:
- More lenient qualification (ie. <3 ADLs) to receive the monthly payouts
- Ability to increase your monthly payouts to better suit your preference/needs, inflation situations (for some plans)
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Comparison of CareShield Life Supplements
At the moment, there are only a couple of private insurers (Great Eastern, Singlife or Income Insurance) who offer CareShield Life supplements, which makes it easier for you to do a comparison to arrive at a decision. The premiums and payouts will differ according to various factors like gender and age. We’ll use a simple example in this comparison to illustrate the estimated premiums and payouts, to help you visualise things clearer. As we look at the 3 options, there are advantages and disadvantages; we see that Income Care Secure is more wallet-friendly, while Great Eastern’s CareShield Advantage and Singlife’s Careshield Plus may cost a little bit more, it provides a more comprehensive coverage and flexibility.
*Annual premium for 35-year-old female
|CareShield Life Supplement||Summary of benefits||Estimated premium*||Estimated payout|
|Income Insurance Care Secure||$483.50||$1,200 a month, including CareShield Life payouts|
|Aviva MyLongTermCare Plus||$548.91||$1,000 a month, excluding CareShield Life payouts|
|Great Eastern CareShield Advantage||$685.66||$1,000 a month, excluding CareShield Life payouts|
Frequently Asked Questions
Is the CareShield Life scheme compulsory?
- Yes and no. It is compulsory for those who are born in 1980 and later as these Singapore Citizens and/or PRs are automatically covered with CareShield Life once they turn 30 years old. However, if you’re born before 1980, it is optional for you as there is no age limit to apply for it.
How much do I need to pay for my CareShield Life premium?
- CareShield premiums start from $206 for men and $253 for women. The premiums will vary depending on your age, gender, You may use the online
Do CareShield Life premiums increase with age?
- Yes. For example, if you’re a 30-year-old female who is married, employed and working full-time for over 7 years, without any severe health or medical conditions or disability, your annual net premium payable will be about $214, with premiums rising every year, about 2% every year until you turn 67 years old.
Can I cancel my CareShield Life?
- No. Once you’re enrolled in the CareShield Life scheme, you will not be able to opt out.