An Understanding of CareShield Life
For medical and retirement needs, the majority of Singaporeans are aware of MediSave, MediShield Life, and CPF.
Many people are not so aware of CareShield Life. However, this is a vital component of financial protection when it comes to long-term care. This is also a hidden gem of your CPF MediSave as it is a protection plan that can be fully paid by MediSave.
This article explains what CareShield Life is, how it operates, and why it’s a crucial safety net to protect your future from the escalating costs of disability benefits.
CareShield Life: What is it?
Singapore introduced CareShield Life, a national long-term care insurance program, in 2020.
When a person becomes seriously disabled and unable to take care of themselves, it offers lifetime monthly cash payouts. In particular, you may file a claim if you are incapable of performing at least three of the six Activities of Daily Living (ADLs):
Activities of Daily Living (ADLs):
- Feeding: The ability to feed oneself.
- Washing: The ability to abth or shower oneself
- Dressing: The abilty to put on and take off clothes
- Toileting:
- Mobility: Walking or moving around
- Transferring (e.g. from bed to chair)
This degree of independence loss frequently necessitates long-term assistance, which can be expensive and come from home care services, nursing homes, or carers.
Why It Matters: Singapore’s Long-Term Care Reality
The demand for long-term care is rising quickly as Singapore’s population ages. The Ministry of Health claims that: One in two healthy Singaporeans over 65 will experience severe disability at some point in their lives. Approximately 30% will continue to be disabled for ten years or longer.
This indicates that the risk is frequent in addition to being real, family members may be left to shoulder the financial burden if they are not prepared.
CareShield Life is essential in this situation.
Important CareShield Life Features:
Monthly Lifetime Payouts
You will receive monthly payments for the duration of your condition if you meet the disability requirements. In 2025, payouts begin at $649 per month and rise yearly.
Inflation-Proof
CareShield Life is made to adapt to growing expenses. Until a claim is submitted, monthly payouts will automatically increase annually.
Worldwide Protection
No exclusions for pre-existing conditions
If you are automatically enrolled, there are no exclusions for pre-existing conditions
Premium is fully payable by MediSave.
The premiums can be paid with money from your MediSave account. Most people don’t need to pay out of pocket.
For people born in 1980 or later, mandatory. Singaporeans born in 1979 or earlier have the option to opt in.
What’s the Difference Between ElderShield and CareShield Life?
The older program, ElderShield, may be familiar to you.
It is replaced and enhanced by CareShield Life in a number of ways:
| Feature | ElderShield (Default) | CareShield Life |
|---|---|---|
| Monthly payout | $300–$400 (fixed) | Starts at $649 (2025) & grows |
| Payout duration | Max 5–6 years | Lifetime |
| Enrollment age | Age 40 | Age 30 |
| Compulsory? | No | Yes (born in 1980 or later) |
| Coverage for pre-existing? | No for opt-ins | Yes for auto-enrolled |
For improved protection, you can switch from ElderShield to CareShield Life if you’re still using it.
Supplements for CareShield Life: For Greater Benefits
Even though CareShield Life offers a solid foundation, you might prefer more comprehensive coverage.
CareShield Life Supplements, which are optional add-ons from private insurers can help with that.
Advantages consist of:
- Increased monthly payments (such as $1,200 or $2,000 per month)
- Reduced thresholds for disabilities (e.g., incapable of performing only two ADLs)
- Extra assistance, such as rehabilitation or carer relief
MediSave can also be used to pay the premiums for these supplements, up to a $600 annual cap per insured individual.
How to File a Claim
Here is the procedure to follow when you or a loved one needs to make a CareShield Life claim:
- Seek evaluation from a severe disability assessor accredited by the MOH.
- Submit the evaluation to the Agency for Integrated Care (AIC).
- Monthly payouts will be credited to the insured person’s or their caregiver’s account upon approval.
- The procedure is clear and designed to reduce anxiety during a trying time.
A sound plan is the first step towards having the financial freedom
Why put off making long-term care plans if you don’t wait for your house to burn down before purchasing fire insurance?
A sound plan is the first step towards having the financial freedom to age with dignity, get good care, and maintain your independence for as long as possible.
And a key component of that strategy for Singaporeans is CareShield Life. It’s more than just insurance; it’s a relief for your family and a safety net for your independence.
Take action now. If you need help as to where to start, feel free to contact us for a non-obligatory chat.
Read next “How MediSave Can Cover Your CareShield Life Premiums in Full“?
