CareShield Life: Beginner’s Guide

Financially Reviewed by Edward Hee
By Firdaus Syazwani

Published: 11 December, 2024
Last Updated: 9 December, 2024

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Planning for your future health can be overwhelming, especially when it comes to long-term care.

Severe disability can hit when you least expect it, and that’s where CareShield Life comes in.

In this post, you’ll learn:

What CareShield Life is and how it works
Whether the payouts are enough for you
How to make a claim if needed
Whether you should consider getting CareShield Life supplements

If you want peace of mind about your future, keep reading to see how CareShield Life can help.

What is CareShield Life?

CareShield Life is a long-term care insurance scheme that provides financial support if you develop a severe disability, particularly as you age and require long-term personal and medical care.

Unlike standard insurance policies, which may have limited coverage periods, CareShield Life is structured to offer lifetime payouts as long as the disability persists.

All Singapore Citizens or Permanent Residents born in 1980 or later, are automatically enrolled in CareShield Life starting from 1 October 2020 or when they turn 30 – whichever is later.

If you are born in 1991 or later, the coverage begins once you reach 30, offering you that peace of mind at an earlier stage in life.

What coverage does Careshield Life provide?

CareShield Life is built to provide essential financial support if you’re classified as “severely disabled.”

In the context of the scheme, severe disability means you’re unable to perform at least 3 out of the 6 Activities of Daily Living (ADLs).

These ADLs are basic functions that most people take for granted but are critical for independent living. They include:

Feeding – the ability to feed yourself without assistance.
Toileting – being able to use the toilet independently.
Washing – managing personal hygiene, such as bathing and cleaning yourself.
Dressing – the ability to put on and remove clothing.
Walking – moving around within your home or living space.
Transferring – moving between positions, like getting in and out of bed or from a chair to a standing position.

Once you’re deemed severely disabled based on these criteria, CareShield Life kicks in with lifetime coverage, meaning you’re supported for as long as your disability persists.

The financial support comes in the form of lifetime cash payouts, offering flexibility in how you use the funds.

Whether you need home-based care, a nursing home, or require specific medical equipment, you have the freedom to decide how best to allocate your funds to meet your care needs.

In 2020, the payout under CareShield Life started at $600 per month, but this amount increases annually by 2% from 2020 to 2025 to keep pace with rising healthcare costs.

Why do I need a CareShield Life?

CareShield Life provides lifelong financial support for individuals facing disabilities, chronic conditions, or age-related illnesses like dementia.

It ensures coverage for unexpected incidents, progressive diseases, and congenital conditions, offering monthly payouts to ease the burden of long-term care costs and provide peace of mind.

It is expected that 1 out of every 2 healthy Singapore citizens aged 65 and above could become severely disabled.

This means they are most likely to need long-term care.

Above all, you are sure to need some financial assistance if you ever face such health issues.

According to a survey conducted by Mercer Marsh Benefits, the cost of Singapore’s medical fees inflated by 10% in 2018 alone.

The data reveals that medical expenditure is costly.

Hence, Careshield Life comes in handy to help pay off your living expenses.

How much does Careshield Life pay out?

In 2024 and 2025, the Careshield Life payout is $649 and $662, respectively.

However, the future payout amounts have yet to be released.

Assuming the 2% increase remains constant, I’ve calculated how much Careshield Life will pay out over the next 10 years:

Year	Projected Payout
2024	$649
2025	$662
2026	$675
2027	$689
2028	$702
2029	$717
2030	$731
2031	$745
2032	$760
2033	$776

I suspect this amount will increase after 2025 as the inflation rate has been rather high these past few years.

I will update this table if the figures change.

The insurers will adjust your monthly payouts accordingly based on which year you’re making the claims.

So instead of starting the first payout at $649/month in 2024, this will be adjusted according to how old you are when making these claims.

Once you start receiving payouts, they will not increase and will remain fixed according to the age at which you first made your claims.

Who is eligible for Careshield Life?

The scheme will automatically provide coverage for Singapore Citizens and Permanent Residents born in 1980 and later, starting from the age of 30.

Year of Birth	CareShield Life Details
On 1979 or earlier	Automatically opt-in if you are an existing ElderShield 400 policyholder born between 1970 and 1979 or can apply to join from 6 Nov 2021 onwards if not severely disabled
Between 1980 to 1990	Automatically opt-in if you are between 30 to 40 years old in 2020
Later than 1990	Automatically opt-in when you turn 30

How much are Careshield Life premiums?

For those enrolled at age 30, the initial premiums begin at $206 per year for men and $254 per year for women.

This difference in gender premiums is due to actuarial considerations, such as life expectancy and the likelihood of requiring long-term care.

The premiums are expected to increase by 2% annually until the end of 2025.

If you want to know your personalised premium amount based on factors like your age and when you join the scheme, you can use the CareShield Life premium calculator.

For individuals born in 1979 or earlier

If you were born in 1979 or earlier, you may still be covered under ElderShield, a scheme before CareShield Life.

However, if you choose to join CareShield Life, your premium will include 2 key components depending on your existing ElderShield plan:

Base premium

This is the regular payment you make for CareShield Life coverage.

It’s similar to the premiums paid by those automatically enrolled in the scheme, ensuring you’re covered for life in case of severe disability.

The amount you’ll pay as a base premium depends on your age and when you decide to join CareShield Life.

Catch-up component

Since you’re joining the scheme later than those automatically enrolled, there is a catch-up component to cover the difference in premiums due to your late start.

This component is designed to bridge the gap, ensuring you receive the same level of coverage as those who have been paying premiums since age 30.

By incorporating this catch-up premium, CareShield Life ensures that late joiners aren’t disadvantaged in coverage, even though they start paying premiums later.

The total amount payable will depend on your age and existing ElderShield plan, but the scheme remains designed to be affordable, with government subsidies available if needed.

How can I pay my CareShield Life premiums?

You can fully pay your CareShield Life premiums using your MediSave account, so you won’t need out-of-pocket cash to cover the cost.

If you don’t have enough funds in your own MediSave account, don’t worry.

You can also use the MediSave accounts of your family members, including your spouse, children, parents, or siblings.

Does Careshield Life have premium subsidies?

As a Singapore Citizen, you will receive up to $250 worth of subsidies spread across the first 5 years after enrolling in CareShield Life.

This subsidy automatically applies to your premiums, helping reduce the initial financial burden of joining the scheme.

Depending on your monthly per capita household income, you may qualify for additional premium subsidies.

Here’s the breakdown:

Monthly Per Capita Household Income	Subsidy
$1,100 or less	30%
$1,101 – $1,800	25%
$1,801 – $2,600	20%

I don’t think Careshield Life is enough for me, how do I get more payouts?

While CareShield Life provides essential financial support, you may feel that it’s not enough, especially if you foresee higher care needs in the future.

That’s where CareShield Life supplements come in.

CareShield Life supplements are insurance plans offered by private insurers that can significantly increase your monthly payouts.

These plans are designed to provide more coverage and make it easier to make claims by reducing the severity of disability required to qualify for payouts.

For instance, most supplements allow you to claim payouts if you cannot perform just 2 Activity of Daily Living (ADL), rather than the 3 required under the basic CareShield Life scheme.

Currently, NTUC Income, Great Eastern, and Singlife are the primary insurers providing CareShield Life supplement plans.

If you’re interested in learning more, I’ve compiled a detailed comparison of the best CareShield Life supplements on the market.

Do I need Careshield Life supplements?

For many people, the basic payouts might cover some aspects of long-term care, but there are often additional costs that aren’t accounted for.

Most people find that while the monthly payouts are helpful, they may not be enough to cover extra healthcare costs, such as regular medical check-ups, physiotherapy, or even home upgrades (like installing wheelchair ramps or modifying bathrooms) to accommodate their condition.

This is where CareShield Life supplements can make a big difference.

These additional policies provide higher payouts, giving you more flexibility in care management.

Plus, you can pay for these supplements using MediSave, up to the Additional Withdrawal Limit (AWL).

This is money you typically can’t touch for other expenses, so using it to boost your long-term care coverage makes a lot of sense.

How do you know if you are covered under a supplement plan?

If you’re unsure whether you’re covered under a CareShield Life supplement plan, it’s easy to check through the CPF Board’s website.

Just follow these simple steps:

Go to the CPF website.
Log in using your Singpass.
Hover over the “My CPF” section and select “Healthcare” from the “My Dashboards” menu.
Click “Long-term care insurance” to view your current long-term care insurance details, including any CareShield Life supplements you may have.

Get more coverage with disability income insurance

If you think that after getting CareShield Life and its supplements are still insufficient for your long-term care needs, then you can get more coverage with disability income insurance.

CareShield Life is designed to address long-term care needs, with payouts that support caregiving and medical costs.

However, it may not provide enough to replace lost income or sustain your lifestyle if you are still managing your daily tasks but unable to work.

Disability income insurance bridges this gap by covering a wider range of disabilities and providing more substantial financial protection.

While CareShield Life provides payouts for severe disability – defined as the inability to perform at least 3 out of 6 Activities of Daily Living (ADLs) – disability income insurance focuses on replacing a portion of your income if you’re unable to work due to an illness or injury, even if you’re not severely disabled.

The payouts from disability income insurance are typically 50 to 75% of your pre-disability income and are meant to cover daily expenses, family commitments, and other financial obligations.

These payouts last until you recover, return to work, or reach a specified age, usually retirement at 65.

This flexibility ensures that even temporary or partial disabilities do not leave you financially vulnerable.

How do I make a CareShield Life claim?

1. Schedule a disability assessment

The first step is to schedule a disability assessment with an MOH-approved severe disability assessor.

The assessor will evaluate whether you meet the criteria of being unable to perform at least 3 out of 6 Activities of Daily Living (ADLs).

2. Login to AIC’s e-Service portal (eFASS)

Once you’ve had the assessment, login to the AIC’s eService portal (eFASS) using your SingPass.

This is where you’ll submit your claim for CareShield Life payouts.

3. Apply for the scheme payout

On the overview page of the eFASS portal, look for the section titled “Apply to Receive Scheme(s) Payout.”

You can apply “For myself” or “As a caregiver” if you’re helping someone else.

4. Wait for approval

After submitting your application, approval can take up to 1 month. Once approved, you’ll start receiving your monthly payouts.

5. For CareShield Life supplements

If you’re claiming CareShield Life supplements, the process is slightly different.

You’ll need to contact your insurance agent, who can assist you with filing the claim for your supplementary coverage.

Frequently asked questions

If my CareShield Life payout had ceased due to recovery, can I subsequently reapply for claims if I become severely disabled again?

Yes, if your CareShield Life payout has ceased due to recovery, you can reapply for claims if you become severely disabled again.

CareShield Life provides lifelong coverage, so if you meet the claim criteria again in the future – meaning you’re unable to perform at least 3 out of the 6 Activities of Daily Living (ADLs) – you are eligible to make another claim.

Just follow the same process to apply, including undergoing a new disability assessment.

Can I cancel my CareShield Life?

No, CareShield Life cannot be cancelled once you’re automatically enrolled.

It is a mandatory national long-term care insurance scheme for Singapore Citizens and Permanent Residents born in 1980 or later.

This ensures that you remain covered for life in the event of severe disability.

Even though you can’t opt out or cancel your coverage, the premiums are affordable, and subsidies are available to help ease the financial burden.

Plus, since you can pay the premiums using MediSave, it’s designed to be manageable for everyone.

Can I purchase more than one CareShield Life supplement?

No, you cannot purchase more than 1 CareShield Life supplement at the same time.

However, your supplement can be tailored to provide additional payouts and benefits based on your needs.

If you’re unsure which supplement to go for, it’s worth comparing the options from different insurers to find the best fit for your situation.

For a detailed comparison, you can check out my guide to the best CareShield Life supplements.

Why should I buy Careshield Life supplements as early as possible?

Buying CareShield Life supplements as early as possible can save you money in the long run.

The younger you are when you purchase a supplement, the lower your premiums will be.

As you age, premiums generally increase, and waiting too long could mean paying significantly higher rates.

Additionally, getting coverage earlier ensures that you are protected sooner, especially if you develop a severe disability in the future.

It’s also important to note that pre-existing conditions might affect your eligibility, so securing a supplement early gives you peace of mind without complications.

Conclusion

CareShield Life is designed to provide essential financial support if you become severely disabled, but as we’ve explored, it’s important to know whether the basic payouts are enough for you.

We’ve covered everything from how CareShield Life works, who’s eligible, how premiums are structured, to the claim process.

For many, the basic coverage might not fully address all their long-term care needs, which is where supplements come in.

These plans can boost your payouts and provide extra peace of mind, especially since they can be paid using MediSave.

If all this still seems overwhelming, don’t worry – you’re not alone. Understanding insurance and long-term care can be tricky.

If you’re unsure whether CareShield Life or a supplement is right for you, why not chat with one of our financial advisor partners?

They’re here to help, and the best part?

It’s completely free.

Ultimately, the right plan depends on your unique situation, and there’s no one-size-fits-all solution.

Make sure you have the coverage that suits your future needs.

References

Firdaus Syazwani

In 1999, Firdaus's mother bought an endowment plan from an insurance agent to gift him $20,000. However, after 20 years of paying premiums, Firdaus discovered that the policy was actually a whole life plan with a sum assured of $20,000, and they didn't receive any money back. This experience inspired Firdaus to create dollarbureau.com, so that others won't face the same problem of being misled or not understanding what they are purchasing – which he sees as a is a huge problem in the industry.

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