With healthcare costs rising and Singapore residents having a 50% chance of developing severe disability in their lifetime,1 the government’s announcement on 27 August 2025 that CareShield Life will start providing higher monthly cash payouts is welcome news. If you’re one of the 1.9 million CareShield Life policyholders in Singapore looking for a quick round-up of the recent changes to CareShield Life and how they’ll affect you, or you need a refresher on how the scheme works, you’ve come to the right place. I’ve gathered all the facts you need to know into this quick list of the top 10 things you need to know about CareShield Life.
Key takeaways:
- From 2026, CareShield Life payouts will increase by 4% per year, up from 2%, to mitigate rising long-term care costs.
- CareShield Life premiums will also increase at 4% per year to support the higher payouts.
- With government support schemes to help residents adjust to the premium increase, residents will pay an average of S$38 more per year.
- Those born in 1979 or earlier who were not automatically enrolled and have mild or moderate disabilities can still enrol for CareShield Life coverage before 31 December 2025.
- While the enhanced CareShield Life monthly payout of S$689 in 2026 narrows the protection gap, it covers only 23% of the average long-term care cost reported by caregivers. A Singlife study found that costs have been rising at about 4% annually – a rate that could climb further. Supplementary plans can give higher payouts and greater peace of mind.
Cushioning the impact of rising care costs in Singapore
Severe disability is defined as the inability to perform three or more basic activities of daily living (ADLs) – feeding, washing, dressing, transferring, toileting and walking or moving around – making long-term care necessary. It’s hard to predict when or for how long this care is needed, but we can look at trends for a rough idea. According to Singlife’s white paper on long-term care, the average age of long-term care insurance claimants is 58 years, and its youngest claimant is only 32 years old.2 This counters the common misconception that severe disability tends to only affect the very old. While it often develops gradually due to loss of mobility in old age, it can also develop suddenly as a result of an accident or a serious illness. Singlife data reveals that stroke, cancer and dementia are the top causes for long-term care claims, and the average claim duration is 10 years. Its longest claimant has been receiving claims for the past 15 years, emphasising the unpredictable nature of long-term care.
To ensure Singapore residents have access to basic financial support for severe disability, the government introduced CareShield Life, a national long-term care insurance scheme, in 2020. Following the first review of the scheme by an independent council in 2025, several recommendations were made and accepted.
Top 10 things to know about CareShield Life
Here are 10 facts about the enhancements and scheme to remember.
1. Higher CareShield Life payouts from 2026
Since its launch, CareShield Life payouts have been increasing yearly to offset higher costs of care in the future. From 2026 to 2030, CareShield Life payouts will grow by 4% every year, double the current 2% rate. This means that an individual who becomes severely disabled in 2026 will receive S$689 monthly instead of S$676 at 2%. Correspondingly, individuals diagnosed in 2030 will receive S$806 instead of S$731.
The higher growth rate is a response to our rapidly ageing population pushing up demand for long-term care, which in turn has led to increased caregiving costs driven by technology and manpower costs. It also complements wider efforts to keep long-term care affordable in the future.
In a 2024 Singlife study, caregivers reported an average spend of S$2,952 a month on long-term care – up by S$628 from 2018, indicating 4% inflation per year.2 So, the enhancement of CareShield Life payouts at the same 4% pace is a timely step in helping families cope.
Curious to know how long-term care costs break down? Check out this infographic on long-term care costs: what S$2,952 a month covers.
2. CareShield Life premiums will increase and there will be financial support to help residents with the transition
To sustain the higher CareShield Life payouts from 2026, premiums will also increase at 4% annually after the initial rise in premiums in 2026.
With more than S$570 million in government support over the next five years, comprising transitional support for all and subsidies for low- to middle-income earners, policyholders will pay an average of S$38 more per year from 2026 to 2030. Premiums will continue to be fully payable through MediSave.
Those who cannot afford their premiums due to financial difficulties or limited family support can apply for additional premium support if they meet the eligibility criteria.
3. CareShield Life is a basic long-term care safeguard for Singapore residents
If you need a refresher, CareShield Life is a national long-term care insurance scheme that offers monthly payouts over a lifetime as long as the claimant remains severely disabled and requires a prolonged duration of personal and medical care. It is just one of many initiatives and support measures to combat the cost of long-term care, and not meant to cover all long-term care costs.
Singapore citizens and permanent residents are covered for life under the scheme, which is mandatory for those born in 1980 or later, regardless of pre-existing disabilities or health conditions. Coverage kicks in once individuals turn 30 years.
- Residents born in 1980 or later
- Those born between 1980 and 1990 (aged 30 to 40 in 2020) are automatically enrolled into CareShield Life starting 1 October 2020 or upon turning 30, whichever is later.
- Those born after 1990 (aged below 30 in 2020) are automatically enrolled into CareShield Life upon turning 30.
- Residents born in 1979 or earlier
Those born between 1970 and 1979 and insured under ElderShield 400, the old national long-term care insurance scheme, are automatically enrolled into CareShield Life at the end of 2021 as long as you’re not severely disabled.
4. CareShield Life offers lifelong coverage and premiums are payable until age 67
Coverage period: CareShield Life covers you for life and the payout amount increases annually until age 67 or when a successful claim is made, whichever earlier.
Premiums: Premiums vary by joining age and sex. Upon enrolment, you’ll pay an annual premium using your MediSave account until the year you turn 67. At its launch, premiums for 30-year-olds started at S$206 for men and S$253 for women. Premiums increase annually to support payouts that also increase over time. From 2020 to 2025, premiums increase by 2% annually, and from 2026 to 2030, they will increase by 4% annually, after which adjustments to the rate of increase will be recommended by an independent CareShield Life Council based on claims experience, changes in life expectancy and disability trends. You can use the Ministry of Health’s online CareShield Life premium calculator to find out your estimated premium amount based on your circumstances.
Payout conditions: CareShield Life claims are paid out when severe disability is diagnosed, i.e. the inability to perform at least three ADLs. The payout amount is not age-based but dependent on the year in which you first make a claim. Two people of different ages making their first claim in the same year will get the same monthly payout. The payout amount increases annually, starting with S$600 per month in 2020, until age 67 or when a successful claim is made, whichever is earlier. In 2026, the payout will be S$689 per month. If you become severely disabled after the age of 67, your payout amount will be pegged to the year you turn 67 and stop paying premiums.
5. Steps for making a claim
You’ll need to undergo a disability assessment to certify your severe disability status by an MOH-accredited severe disability assessor, which is free for the first time. There are more than 700 assessors, with over two-thirds of them providing house calls, and the Health Ministry is looking into providing tele-assessments to better support claimants.
Here’s a handy resource about CareShield Life claim procedures and the list of MOH-accredited severe disability assessors.
6. No payout for less severe disabilities
While the independent council appointed to review the scheme had considered widening the eligibility criteria to allow those with less severe disability, such as an inability to perform two ADLs, to qualify for payouts, this was eventually passed over in order to avoid significant premium increases.
However, the fact is that even one ADL limitation can result in major lifestyle adjustments. A study by the Department of Statistics Singapore and the Lee Kuan Yew School of Public Policy projects found that by 2030, almost 83,000 individuals aged 60 and above will have one or more physical ADL limitation requiring human help.3
For greater financial security, you can opt for additional coverage that goes above that offered under the enhanced national scheme by getting a government-approved supplement offered by private insurers. Singlife’s CareShield Plus, for instance, provides coverage starting from the inability to perform one ADL.
7. CareShield Life enrolment for older individuals with mild disabilities is available until end 2025
If you were born in 1979 or earlier and have mild or moderate disabilities, you can still enrol in CareShield Life by 31 December 2025.
This marks the end of the four-year grace period to join under the relaxed criteria. From 1 January 2026, only individuals without pre-existing disabilities will be able to enrol in CareShield Life.
8. CareShield Life and MediShield Life complement each other
The two mandatory national insurance schemes have similar-sounding names but very different functions.
CareShield Life is an upgraded version of the ElderShield scheme that provides monthly cash payouts in the event of severe disability. The payout is to financially support you for your long-term care needs such as employing a caregiver or paying for daily-living aids like a wheelchair.
MediShield Life covers high hospitalisation expenses and selected outpatient treatments such as cancer treatment and kidney dialysis.
CareShield Life and MediShield Life premiums are fully payable by MediSave. If you have insufficient savings in your MediSave account, you can make a top-up online through the CPF website.
9. You can boost your CareShield Life coverage for greater peace of mind
CareShield Life provides basic financial support for long-term care, however, there are many one-off and recurring long-term care expenses you need to factor. For example, hiring a caregiver, daily-living activity aids, home modifications, rehabilitation therapy, special diet and medication. Other costs include a family caregiver’s partial or total loss of income.
As mentioned earlier, long-term care costs average nearly S$3,000 per month,2 and are set to rise. While the enhanced CareShield Life payout helps narrow the protection gap, it’s hard to predict if the 4% inflation rate for long-term are costs will remain or climb even higher in future. Adding a supplementary plan on top of your CareShield Life coverage provides higher payouts and greater financial peace of mind for you and your loved ones.
Three appointed private insurers in Singapore offer supplementary plans for CareShield Life so individuals can have better financial cushioning. For example, Singlife – which insures one in two supplementary plan holders – offers Singlife CareShield Standard and Plus, which provide higher monthly payouts of up to S$5,000 on top of the national scheme, as well as additional benefits such as the Caregiver Relief Benefit and a premium waiver when you’re unable to perform at least one ADL.
10. You can use MediSave to pay your / your loved ones’ supplementary plan premiums
Instead of paying cash, you can use your MediSave to pay the CareShield Life supplementary plan premiums for yourself and your family members, such as your spouse, parent, child, sibling or grandchild. However, note that there’s a limit of S$600 per year per insured person. Cash will be required for premiums exceeding this limit or if there are insufficient funds in the designated MediSave account.
Conclusion
CareShield Life gives basic financial support should you become severely disabled and require long-term care, and enhancements to the scheme mean that from 2026, you can expect better financial coverage to keep pace with rising costs. However, the full financial impact of long-term care often goes well beyond what we might perceive.
Enhancements to CareShield Life payouts better equip Singaporeans for the cost of long-term care but there remains a significant coverage gap which can be plugged by supplementary plans. If you’re one of the two in three residents who has yet to boost your coverage,2 remember that while you can get a supplementary plan from an appointed insurer at any time, doing so when you’re young and healthy will mean little or no coverage exclusions, so you can have greater peace of mind whether disability develops suddenly in your 30s or gradually due to ageing.
Notes
1. Source: Ministry of Health, “CareShield Life”, accessed on 1 September 2025.
2. Source: Singlife, “From Awareness to Action: Securing Long-Term Care for a Super-Aged Society”, published on 25 July 2025.
3. Source: Duke NUS Medical School, “Projecting the number of older Singaporeans with Activity of Daily Living limitations requiring human assistance through 2030”, published on 1 January 2014.
You need to have a basic CareShield Life (CSHL) or ElderShield (ESH) policy before purchasing Singlife CareShield Standard or Singlife CareShield Plus (“Supplements”).
Supplements purchased by CSHL policyholders are regulated under the CareShield Life and Long-term Care Act. Supplements purchased by ESH policyholders before the transfer of ESH to Government administration are considered ESH Supplements, which are regulated under the Central Provident Fund (Withdrawals for ElderShield Scheme) Regulations. After the transfer, they are considered CSHL Supplements, regulated under the CareShield Life and Long-Term Care Act.
