Long-term care insurance plays an important role in Singapore’s healthcare system by helping individuals manage the financial risks of developing severe disabilities. The two main government-backed schemes are ElderShield and CareShield Life. 

While ElderShield offers basic coverage, CareShield Life provides more comprehensive benefits and lifelong payouts. Understanding how these schemes work and their differences can help you make informed financial decisions.

Learn more: Health Insurance In Singapore >>

What is ElderShield?

ElderShield was introduced in 2002 to provide basic financial support for Singaporeans who became severely disabled and could no longer care for themselves. Singapore citizens and permanent residents were automatically enrolled at age 40, unless they opted out. The plan offered a monthly payout of $300 or $400 for a limited number of years, depending on the version of ElderShield they were on.

While ElderShield served its purpose, it had some limitations. The payouts were fixed and didn’t keep up with rising healthcare costs, making it harder for beneficiaries to manage expenses. Additionally, the payouts lasted only 5 to 6 years, which might not be enough for someone who needs lifelong care. This led to the creation of a more comprehensive alternative: CareShield Life

ElderShield is no longer open to new sign-ups, but those who are already on the plan can continue receiving benefits if they qualify. They also have the option to upgrade to CareShield Life for better coverage. Source: CareShield Life

How CareShield Life Improves Coverage

To address the limitations of ElderShield, CareShield Life was introduced in 2020 with several key improvements. One of the most significant changes is that CareShield Life provides lifetime payouts as long as the individual remains severely disabled, ensuring continuous financial support for as long as needed.

Another major difference is the payout amount. Unlike ElderShield’s fixed payouts, CareShield Life starts with a $600 monthly payout (as of 2020) that increases annually until age 67 or when a claim is made. This helps keep up with inflation and rising healthcare costs. Source: DBS

CareShield Life also offers broader coverage. It is mandatory for all Singaporeans born in 1980 or later, who are automatically enrolled at age 30. Those born before 1980 can opt in, provided they are not already severely disabled.

Who Can Make a Claim?

Both ElderShield and CareShield Life define severe disability based on a person’s ability to perform six key Activities of Daily Living (ADLs):

1. Washing – Being able to bathe independently.
2. Dressing – Putting on clothes without assistance.
3. Feeding – Eating food without help.
4. Toileting – Using the toilet without support.
5. Mobility – Moving around indoors without assistance.
6. Transferring – Getting from bed to chair or wheelchair without help.

If an individual is unable to perform at least three out of these six activities, they can qualify for payouts under either scheme. Claims are assessed by MOH-accredited severe disability assessors, and the cost of assessment can be fully refunded if the claim is successful. Source: CareShield Life

How Do You Pay for CareShield Life?

One of the advantages of CareShield Life is that its premiums are fully payable using MediSave, meaning no out-of-pocket expenses are required. Singaporeans pay premiums from age 30 to 67 or until they make a successful claim. While premiums increase over time, the government offers subsidies to lower-income individuals to ease the financial burden.

For those on ElderShield, there is an option to upgrade to CareShield Life, though premiums may vary based on age and health status. Alternatively, those who remain on ElderShield can enhance their coverage by purchasing private ElderShield supplements, which provide higher payouts and longer payout durations.