Since 1 October 2020, all Singaporeans who turn 30 are automatically enrolled into CareShield Life – our national long-term care insurance scheme, administered by the Government. In effect, CareShield Life replaced the ElderShield scheme.
When CareShield Life was initially introduced, those who were between 30 and 40 years old (born between 1980 to 1990) were automatically enrolled. Those above 40 years old (born before 1979) could choose to continue with their existing ElderShield coverage or opt into CareShield Life.
Given that every Singaporean who turns 30 will be enrolled automatically, we should equip ourselves with the knowledge of the scheme and what it covers. Here’s a complete guide to what every Singaporean should know about CareShield Life.
Read Also: CareShield Life Vs ElderShield: Understanding The Differences Between These Two Policies
What Is CareShield Life?
While MediShield Life is mandatory health insurance for all Singaporeans, it is designed and intended to provide coverage for large hospital bills, including hospitalisation and surgeries, and selected costly outpatient treatments such as dialysis and chemotherapy for cancer. However, it is not intended to provide financial support for those who require longer term care, even though there are some provisions for community hospital care.
Instead, support for long term care was covered by Eldershield, a basic long-term care insurance scheme targeted at severe disability, especially during old age. It provides a monthly payout of up to $400, upon the event of severe disability. However, this payout only lasts up to 6 years.
In recognition of the fact that Singaporeans require better and longer coverage for long term care, CareShield Life was launched on 1 October 2020 as a long-term care insurance scheme that provides basic financial support to Singaporeans in the event of severe disability, especially during old age, and who require personal and medical care for an extended duration (i.e. long-term care).
All Singaporeans Are Covered Under CareShield Life
As long as you are a Singapore Citizen or Permanent Resident, you will be automatically enrolled in CareShield Life when you turn 30. This is regardless of any pre-existing medical conditions or disability you may have.
Singaporeans born between 1980 and 1990 were automatically enrolled into the scheme and covered from on 1 October 2020 or subsequntly when you turned 30.
For Singaporeans born in 1979 or earlier, you had a choice to either apply to join CareShield Life or remain on ElderShield. This option to join CareShield Life was available from end-2021 onwards if you are not severely disabled. There is no age limit.
Additionally, if you are born between 1970 and 1979 (aged 41 to 50 in 2020), insured under ElderShield 400, and not severely disabled, you will be automatically enrolled in CareShield Life from end-2021. However, you can opt-out by 31 Dec 2023 if you do not wish to remain on CareShield Life. More information on auto-enrolment will be provided closer to end-2021.
Read Also: Why It Makes Financial Sense For Your Elderly Parents To Convert From ElderShield To CareShield Life
CareShield Life Provides Lifetime and Worldwide Coverage And Lifetime Payouts
The major difference between ElderShield and CareShield Life is that CareShield Life provides lifetime coverage. Unlike ElderShield, the payouts are not time-limited; you will receive monthly payouts for as long as you remain severely disabled. The payouts are given out in cash (not reimbursement) so that you have the flexibility to decide whether you want to be cared for at home or a care facility.
You will continue to be covered for life once you have completed paying all your premiums, which will happen in the year you turn age 67 or 10 years after you join the scheme, whichever is later.
Read Also: How Much CareShield Life Premiums Will You Be Paying? (And Subsidies You’ll Receive)
CareShield Life also provides worldwide coverage. Regardless of your residence, you will remain covered, and be able to make a claim and receive payouts, if you are enrolled and continue to pay your premiums.
When it was launched in 2020, CareShield Life payouts, upon the event of severe disability, started at $600/month. From 2020 to 2025, payouts increased by 2% per year – such that anyone who becomes disabled in 2025 will receive $662/month.
Thereafter, payout increases and corresponding premium adjustments will be recommended by an independent CareShield Life Council. These payout increases are helpful but may not be fully adequate, especially when you realise that medical inflation has risen double-digits annually in recent years.
While CareShield Life payouts increase annually, once you have made a claim for severe disability, your payout amount is fixed as of that year and will not increase further. Whereas your peer who makes a claim later in life will receive a higher payout, as illustrated in the example below. This is also mainly because you would stop paying premiums once you make your CareShield Life claim, while others continue to pay.
Source: CareShield Life
How Much Are Your CareShield Life Premiums?
As alluded to, CareShield Life premiums are pre-funded during your working years. What this means is that you have to pay a higher premium until the age of 67, and thereafter, continue to enjoy lifelong coverage without paying any more premiums.
When CareShield Life started in 2020, MOH indicated that increase in annual premiums would reflect the 2% increase in annual payouts between 2020 and 2025.
Since premiums started at $206 for males and $253 for females who turned 30 in 2020, a 2% annual increase would translate to about $223 for males and $279 for females turning 30 in 2025. For those already on CareShield Life, you can view your personalised CareShield Life premiums on the website. In general, it should also be 2% higher in 2025 compared to 2024.
Females pay a higher premium as they generally live longer and have higher chances of developing severe disability.
You can also look forward to means-tested premium subsidies, based on your monthly per-capita household income (PCHI):
Those who cannot afford the CareShield Life premiums even after premium subsidies, and family support, may be eligible for Additional Premium Support. This ensures that no one will lose their CareShield Life coverage because of the inability to afford the premiums.
CareShield Life Claims Are For Those Who Cannot Perform 3 Of The 6 Activities Of Daily Living (ADLs)
In order to make a claim, you need to be assessed by a MOH-accredited severe disability assessor as being unable to perform at least three out of the six Activities of Daily Living (ADLs).
Source: CareShield Life
If you are residing in a nursing home, the nursing home can help submit a Resident’s Assessment Form in place of the severe disability assessment.
The severe disability assessment fee is $100 for a clinic assessment and $250 for a house call. The fee is waived if it is your 1st assessment for CareShield Life. If this is not your 1st assessment, the assessor will collect an assessment fee from you. The full fee will be reimbursed if you are assessed to be severely disabled and will be reimbursed with the first payout.
The claim application is made through AIC and it will take about one month to process.
CareShield Life Is Meant To Provide Basic Long Term Care Support To Singaporeans
While CareShield Life does provide more comprehensive coverage for long term care, the payout may not be sufficient for those who need a higher level of care. For instance, the basic cost for a nursing home is between $2,000 and $3,600 a month to stay in a nursing home (before MOH subsidy), depending on the level of care required.
Instead, home care may be a more financially sustainable option, especially in combination with the other grants and subsidies available for seniors.
While CareShield Life and MediShield Life are government schemes that help Singaporeans afford quality basic care, we are ultimately responsible for our own health and well-being. Thus, we should take the timely reminder at age 30 when we receive our CareShield Life letter, to maintain a healthy lifestyle and plan for our future.
Read Also: Seniors’ Guide To Healthcare Schemes, Grants And Subsidies In Singapore
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