How Your CareShield Life Premiums Can Be Fully Covered by MediSave
People frequently think, “More premiums?” when they hear the word “insurance.” More money out of my wallet?
However, that isn’t always the case with Singapore’s national long-term care insurance program, CareShield Life.
The majority of Singaporeans actually don’t have to pay any cash because they can use their MediSave to pay their CareShield Life premiums in full.
Let’s dissect it.
MediSave: What Is It?
The CPF system, an automatic savings plan created to assist Singaporeans in covering their personal and family medical expenses, includes MediSave.
Your MediSave Account (MA) receives a portion of your monthly CPF contributions.
These savings can be used for:
- Medical bills
- Premiums for health insurance (CareShield Life, ElderShield, MediShield Life, and Integrated Shield Plans)
- Licensed outpatient therapies
You don’t have to pay cash for eligible premiums, such as CareShield Life, as long as your MediSave has enough money.
An Overview of CareShield Life
All Singaporeans and Permanent Residents born in 1980 or later are required to have CareShield Life, which pays out monthly cash benefits for life if you are unable to perform three or more Activities of Daily Living (ADLs), such as eating, dressing, moving around, or washing.
It is intended to pay for the disability costs associated with losing one’s independence.
However, what is the price?
What Does a CareShield Life Premium Cost?
The following factors affect premiums:
- When you join, your age
- Gender (because women typically live longer, they pay a little bit more)
- If you have any pre-existing conditions that affect late joiners,
The annual premium for a person who begins at age 30 could be anywhere from $200 to $600. This lasts until age 67, or ten years if you join after age 59.
MediSave can be used to pay for all of these premiums. Your immediate family (spouse, parents, siblings, and children) can also contribute from their MediSave accounts if your MediSave is insufficient; again, no cash is required.
Here’s how MediSave and CareShield Life complement each other:
- Automatic deduction: The premium is automatically taken out of your MediSave account.
- Cashless convenience: Unless your MediSave is insufficient, you won’t be billed.
- Built-in family support: A family member can access CPF and approve payment from theirs if your MediSave runs low. This guarantees coverage continuity without going over your monthly spending limit.
What Happens If I Want Additional Coverage?
Although CareShield Life offers a basic monthly payout (beginning in 2025 at $649/month and rising annually), some individuals might prefer more extensive coverage.
CareShield Life Supplements can help with that. These are private insurers’ optional plans that provide:
- Greater payouts (such as $1,200 or more per month)
- Benefits for people with moderate disabilities (e.g., unable to perform only two ADLs)
- Extra services, such as support for carers
The good news is that, MediSave can also be used to pay all or part of the premiums for these supplements. This allows you to improve your long-term care insurance without compromising your daily income.
Why This Is Important: Stress-Free Living Is the First Step Towards Financial Freedom
One of the largest financial strains on families is long-term care.
- If unforeseen, it may indicate:
- Kids taking money out of their savings
- Delaying retirement, spouses
- Whole families must make difficult decisions
Conveniently paid with MediSave, CareShield Life provides a stress-free first line of defense—no monthly payments, no additional budgeting, just peace of mind.
Managing your current finances and planning for the future don’t have to conflict.
Take action now. If you need help as to where to start, feel free to contact us for a non-obligatory chat.
Read next: “Is CareShield Life Enough? Do I need Supplement Plans?”
