facebookCareShield Life: All You Need To Know About This National Insurance Scheme


CareShield Life: All You Need To Know About This National Insurance Scheme

profileCherie Tan

By now, you should have heard of CareShield Life.

Which is basically ElderShield 2.0, newer but with better coverage, and a funky new name.

It’s part of the Government’s initiative to better address our ageing population.

Source: SpongeBob SquarePants | Giphy

On 1 October 2020, all Singapore residents between 30 to 40 years old will start paying premiums and be included in this national long-term care insurance scheme.

Disclaimer: This is not a sponsored post, all opinions are our own. 

What is CareShield Life?

Similar to ElderShield, CareShield Life offers a payout upon severe disability to help finance the long-term care cost.

You will receive lifetime cash payouts as long as you are severely disabled.

Severe disability is defined as needing assistance in at least three of these activities of daily living:

  • eating
  • getting dressed
  • using the toilet
  • bathing
  • moving
  • walking around, and
  • getting from the bed to a chair or vice versa

These payouts will increase over time — starting from S$600 a month in 2020.

The premiums are fully payable via MediSave.

And there are Government subsidies available if you need help paying for the premiums.

Is CareShield Life An Improvement From ElderShield?

Overall, yes.

The payouts are definitely higher.

The original ElderShield 300 provided S$300 per month for 5 years.

When it was upgraded to ElderShield 400, you received S$400 per month for 6 years.

With the new CareShield Life, you now receive S$600 per month from the start and the payouts will increase over time, for life.

Am I Automatically Under CareShield Life?

Year of BirthCareShield Life Details
On 1979 or earlierYour current ElderShield will continue to cover you if you have one


You can choose to join from 2021
Between 1980 to 1990Automatically opt in if you are between 30 to 40 years old in 2020
Later than 1990Automatically opt in when you turn 30

The first batch of Singaporeans who will be under CareShield Life will begin on 1 October 2020.

More specifically, it will be for those aged 30 to 40 in 2020.

What Are the Premiums for CareShield Life?

Premiums begin from age 30 to 67 (a total of 38 premiums over your lifetime).

They currently start at $206 for male and $253 for female — starting at age 30 for both.

The premiums will increase at a rate of 2% a year for the first 5 years.

FYI: the rate at which it will increase for subsequent years will be decided again by the CareShield Life Council

Anyone with a severe disability at the joining age of 30 has to pay only the first premium in order to qualify for lifetime payouts.

For anyone eligible for a payout, he or she will stop paying premiums even if they are younger than the last premium payment age of 67 years

What is the Estimated Monthly Payout?

YearMonthly Payouts

Source: Ministry Of Health

Premiums are based on a 2 per cent increment rate for the first 5 years.

Do note that once you start collecting a payout, this amount will be fixed and will not increase, even when the scheme’s payout increases in the future.

Similarly, the payout amount will be fixed at the amount the year you pay the last premium at age 67.

Is There A Huge Difference Between CareShield Life vs ElderShield?

For CareShield Life, the payout upon disability is at least 50% higher.

The payout also lasts a lifetime.

 ElderShieldCareShield Life
Able to opt out?YesNo
Payable by MedisaveYesYes
Premiums start at40 years old30 years old
Premiums stop at65 years old67 years old
(or later according to retirement age)
Annual premiums*$175 (Men);
$218 (Women)
$200 (Men);
$250 (Women)
- Increase 2% every year
Premiums are paid for (years)2638
Government subsidyNoYes
Payout starts whenUnable to do at least 3 Activities of Daily Living (ADLs)
Payout amount$400/month$600/month
(starting 2020)
Duration of payoutSix yearsLifetime

Source: The Straits Times

*Using premiums for ElderShield from age 40 and CareShield Life from age 30

 ElderShieldCareShield Life
Total Premiums PaidS$4,600S$7,800*
Total Estimated PayoutsS$28,000^S$144,000*

Note: Figures are rounded to the nearest hundred.
^ ElderShield has a payout of 6 years.
*Premiums are before subsidies. Figures assume a 2% increase in premium per year.

How To Join CareShield Life?

All Singaporeans and Singapore PR born before 1980 can choose to join CareShield Life from 2021.

It is not compulsory for those who are already under ElderShield.

However, if you wish to opt in for CareShield Life, you will be required to pay more premiums (by topping up).

Is There An Incentive To Join Careshield Life?

There are incentives for those born before 1980 to join CareShield Life within 2 years of launch:

Year of BirthTotal Incentives
(10 years)
Incentive Per Year
Before 1960S$2,500S$250

Are There Any Premium Subsidies Available for CareShield Life?

As with any Government initiative, there most certainly are.

All Singapore Citizens will receive up to S$250 over the first 5 years to help pay for the premiums of CareShield Life.

Additional premium subsidies are also available for people with a monthly per capita household income of:

Monthly Per Capita Household IncomeSubsidy Rate
S$1,100 or less30%
S$1,101 – S$1,80025%
S$1,801 – S$2,60020%

Overall, the premium subsidies and benefits are similar to MediShield Life.

You can use your MediSave to pay for the premiums.

And also use your MediSave to pay for your dependant’s premiums.

If I Am on ElderShield, Can I Opt for CareShield Life?

CareShield Life is not compulsory for those who are already on ElderShield.

If you are under Eldershield Life and want to opt in for CareShield Life.

You can upgrade to CareShield Life from 2021.

If you have opted out of ElderShield but want to opt-in for CareShield Life…

You can do so provided that you are not currently disabled.

Examples for Opting In to Careshield Life While on ElderShield:

Erm… Is the Government Trying To Make a Profit Off Us Through CareShield Life?

There were 1.3 million ElderShield policyholders in 2017.

Meaning a total of S$3.3 billion in premiums was collected.

However, only about $133 million was paid out in claims…

So what happened to the surplus? Hmmm…

Also, previously when ElderShield was covered by only 3 insurers in Singapore.

It resulted in ‘profits’ which had raised questions as to why the Government is implementing CareShield Life.

However, according to this statement, the Government assured us that:

  • The premiums collected and returns from investments will stay within the fund so that policyholders can benefit through higher payouts or premium rebates
  • Today, premiums collected under ElderShield are more than the claims paid out, as most policyholders are relatively young
  • But the premiums collected do not become Government surpluses, rather, they are meant for future claims — when policyholders become older and more of them make claims for severe disabilities (see the graphic below)
Source: gov.sg

For CareShield Life, all premiums collected will remain within the fund.

And will only be disbursed to policyholders.

It will NOT be transferred to other Government schemes.

CareShield Life: All You Need To Know About This National Insurance Scheme

So there you have it.

With CareShield Life, we’ve got a little more assurance that we will be financially supported in an unfortunate case of severe disability.

If you have any questions or would like to hear different perspectives from others on this, feel free to ask the SeedlyCommunity!


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