CareShield Life Guide 2025: What It Is & How to Make the Most of It

Earlier this week on 27 Aug 2025, the Government announced that CareShield Life payouts and premiums will be increasing from 2026. On one hand, this means higher monthly support if you ever face severe disability. On the other, it also means paying more each year to keep the scheme sustainable.

But wait. What exactly is CareShield Life, and how do these changes affect you? In this guide, we’ll walk you through how CareShield Life works today, what’s changing, and how you can make the most of it for your future peace of mind.

Guide to CareShield Life (2025)

1. 1. What is CareShield Life?
   2. What qualifies as “severely disabled”?
   3. Who is eligible for CareShield Life?
   4. CareShield Life: What’s new in 2025?
   5. CareShield vs ElderShield–which is better?
   6. MediShield vs MediSave: A complete comparison
   7. How much are CareShield Life premiums?
   8. How much does CareShield Life pay out?
   9. Should you upgrade your CareShield Life?
   10. How to decide on a CareShield Life supplement
   11. What about the Integrated Shield Plans?

 

1. What is CareShield Life? 

About 1 in 2 healthy Singaporeans aged 65 could become severely disabled at some point in their lives. “Severely disabled” refers to needing help with daily tasks like eating, toileting, or moving around—activities that usually require a caregiver.

CareShield Life is a national disability insurance scheme launched in Oct 2020. If you become severely disabled, it provides a monthly cash payout for as long as the condition lasts, even if you’re living overseas.

Back to top

 

2. What qualifies as “severely disabled”? 

CareShield Life defines this as the inability to perform at least 3 out of 6 Activities of Daily Living (ADLs). They are:

• Washing – Washing in the bath or shower (including getting in and out) or by other means
• Dressing – Putting on, removing, securing and fastening all clothes, braces, artificial limbs or other surgical or medical appliances
• Feeding – Feeding yourself prepared and available food
• Toileting – Using the toilet and managing bowel and bladder function through the use of protective undergarments or surgical appliances if appropriate
• Walking or moving around – Moving indoors from room to room on level surfaces
• Transferring – Moving from a bed to an upright chair or wheelchair and vice versa

An individual is entitled to CareShield Life payouts if he/she is unable to perform at least 3 of the above. However, one can’t simply claim that you’re unable to perform 3 out of 6 ADLs and expect to receive your first payout. To make a claim, a person needs to be officially assessed by an MOH-accredited severe disability assessor.

The assessment costs $100 at a clinic and $250 if the assessor travels to your home, but this fee is waived:

• For your first assessment applying for CareShield Life, no matter the assessment outcome.
• If you’re found to be severely disabled.

Those living in nursing homes can get the home to submit a Resident’s Assessment Form, which can replace the severe disability assessment. Once they have been assessed as severely disabled, they can then submit a claim application form to the Agency for Integrated Care (AIC) by logging in here with your SingPass.

If an individual has a private CareShield Life supplement plan, the agent might be able to help with the claim. However, the procedure will be fairly similar.

Back to top

 

3. Who is eligible for CareShield Life?

All Singapore Citizens and Permanent Residents are eligible, but when and how you join depends on the year you were born:

Born in 1980 or later

You’re automatically covered under CareShield Life once you turn 30 (or from 1 Oct 2020 if you were already 30 then). This applies regardless of any pre-existing medical conditions or disabilities.

If you were born in 1990 or later, you’ll receive a letter from MOH about 2 months before your 30th birthday with more details.

Born in 1979 or earlier

Participation is optional, as long as you’re not already severely disabled.

If you were born between 1970 and 1979 and insured under ElderShield 400, you would have been automatically enrolled into CareShield Life on 1 Dec 2021. No action was needed.

If you weren’t automatically enrolled, you can still apply through the CareShield Life e-Service using Singpass. You’ll also enjoy a 60-day free-look period to change your mind.

Note: For foreigners who became Singapore Citizens or Permanent Residents from 1 Oct 2020 onwards, joining CareShield Life is mandatory (unless they already have severe disability).

Back to top

 

4. CareShield Life: What’s new in 2025?

In Aug 2025, the Government accepted the CareShield Life Council’s recommendations to enhance the scheme from Jan 2026 onwards. Here’s what you need to know:

Higher payouts

The annual payout growth rate will double from 2% to 4%. For example, a policyholder making a claim in 2030 will now receive $806 a month, compared to $731 under the old rate.

Year	Current payout	Enhanced payout
2026	$676	$689
2027	$689	$717
2028	$703	$745
2029	$717	$775
2030	$731	$806

Premium adjustments

To sustain these higher payouts, premiums will rise. Without support, annual premiums would have increased by about $126 in 2026 and 4% thereafter. With Government support, premium increases will instead be phased in, averaging $38 to $75 a year between 2026 and 2030. Rest assured that no one will be excluded from the scheme due to being unable to pay their premiums.

Extra government support

Over the next 5 years, more than $570 million in premium support will be provided. This includes:

• Broad-based transitional support to smoothen premium increases.
• Means-tested subsidies of up to 30% for lower- and middle-income households.
• Expanded Additional Premium Support for those unable to pay premiums even after subsidies.

Easier claims process

Severe disability assessments will be streamlined. One assessment can now be used to determine eligibility for CareShield Life as well as related schemes like the Home Caregiving Grant, reducing admin hassle for families.

Here’s the bottom line: Bigger benefits are on the way, but so are higher premiums. With extra subsidies and transitional support, the Government aims to keep the scheme affordable and sustainable.

Back to top

 

5. CareShield vs ElderShield–which is better?

CareShield Life has replaced ElderShield as Singapore’s national severe disability insurance scheme. It provides stronger and longer-lasting protection.

Feature	ElderShield	CareShield Life
Monthly payouts	$300–$400	From $600 in 2020, grows annually (2% till 2025, 4% from 2026) until age 67 or claim
Payout period	5–6 years	No limit—for as long as severe disability lasts
Entry age	40	30
Premium term	Up to age 65	Up to age 67, or earlier if a claim is made
Annual premiums	Lower	Higher, increase yearly until age 67, unless a claim is made

While both schemes were designed to support Singaporeans with long-term care needs, CareShield Life is clearly the more comprehensive option. By starting coverage earlier (at age 30) and providing lifelong payouts instead of a fixed 5–6 years, it offers far greater protection against the uncertainty of severe disability.

The trade-off is that CareShield Life comes with higher and rising premiums, which increase each year until age 67. However, these contributions are what make the larger, inflation-adjusted payouts possible. And with the Government’s subsidies and premium support measures, most Singaporeans will still find the scheme affordable.

On the whole, ElderShield was a starting point, but CareShield Life is the stronger safety net. It’s designed to keep pace with the rising costs of care and provide peace of mind for the long haul.

Back to top

 

6. MediShield vs MediSave: A complete comparison

When it comes to public healthcare coverage, every Singaporean and Permanent Resident is supported by MediShield Life and MediSave. They work hand in hand, but serve different purposes.

• MediSave works like a personal healthcare savings account under CPF. You and your employer contribute a portion of your wages into it, which can be used for your own or your dependants’ hospitalisation, day surgery, selected outpatient treatments, and approved insurance premiums (e.g. MediShield Life).

• MediShield Life is a national health insurance scheme that covers large hospital bills and costly outpatient treatments like dialysis and chemotherapy. It ensures you’re protected from high medical costs, with an annual claim limit of $150,000 and no lifetime cap. Premiums rise with age but can be paid using MediSave.

Think of MediSave as your “healthcare wallet” and MediShield Life as your “insurance shield.” Both are essential, and together they form the foundation of Singapore’s healthcare financing system.

And while CareShield Life might sound similar, it’s different: CareShield pays out cash to support your daily living expenses if you become severely disabled, while MediShield Life and MediSave only cover medical treatment costs.

Back to top

 

7. How much are CareShield Life premiums?

CareShield Life premiums depend on your age when you join and your sex. They increase every year until you turn 67, in line with the growth in payouts. Premiums are fully payable using MediSave.

From 2026 onwards, payouts (and therefore premiums) will grow at 4% per year, with the increases reviewed regularly by an independent council to keep the scheme sustainable. To help cushion the rises, the Government will provide over $570 million in transitional support and subsidies between 2026 and 2030.

Women generally pay higher annual premiums than men because they live longer and face a higher risk of severe disability, which means they are expected to receive more in payouts over their lifetimes.

Once you qualify for payouts due to severe disability, you no longer need to pay premiums.

Want to know your exact premiums? Use MOH’s official CareShield Life Premium Checker.

Back to top

 

8. How much does CareShield Life pay out?

After you’ve joined CareShield Life and paid your premiums, you’ll receive a monthly cash payout for as long as you remain severely disabled.

• When the scheme was launched in 2020, payouts started at $600/month.
• Between 2020 and 2025, payouts grew by 2% each year.
• From 2026 onwards, payouts will grow by 4% per year until you turn 67, or until you make a claim — whichever comes first.

Year	Current payout	Enhanced payout
2026	$676	$689
2027	$689	$717
2028	$703	$745
2029	$717	$775
2030	$731	$806

Once you’ve made a successful claim or reached age 67, your monthly payout amount will be fixed at that level for life.

Back to top

 

9. Should you upgrade your CareShield Life?

Under the default CareShield Life scheme, monthly payouts are relatively modest. In 2025, the payout is $662/month, and from 2026 onwards, payouts will grow at 4% annually until age 67. While this may help younger individuals who can eventually return to work, it may not be enough for those who face long-term disability in old age, since payouts are fixed once you start receiving them.

Interestingly, most early beneficiaries of CareShield Life were not elderly. MOH data shows that:

• 90 people first received payouts in the last 3 months of 2020,
• 353 in the year 2021,
• 638 in the year 2022.

Claimants ranged from ages 30 to 88, with the median age being 39 years. Many of these younger recipients have chronic conditions from birth, which limit their ability to perform daily activities like bathing or walking.

If you want stronger coverage, you can upgrade with a CareShield Life supplement plan from 1 of 3 private insurers (Great Eastern, Singlife, or Income). These plans can:

• Lower the disability definition from 3 ADLs to 2 or even 1.
• Raise your monthly payouts to a more comfortable level.
• Provide payout increases that keep up with inflation.

CareShield Life remains compulsory for Singaporeans and PRs born in 1980 or later, while those born before 1980 may opt in if they wish.

Back to top

 

10. How to decide on a CareShield Life supplement

When buying a CareShield Life supplement, you need to decide how much disability income you want. Given the uncertainty of long-term care costs and the duration of severe disability should this happen to us, working out this amount can be difficult.

In the best-case scenario, you have a family member willing to care for you for free. But you’d still need enough for your daily living expenses, mobility aids, transport and so on. On the other hand, your disability could be so severe that you need to be placed in a nursing home. This can cost thousands of dollars a month.

In any case, you should have a number in mind before you start comparing. It’s relatively simple to compare providers since there are only 3 insurers. For a quick look, here’s a quick comparison of the supplement plans available.

You can also read our review: CareShield Life Supplement Guide: Income vs Singlife vs Great Eastern (2025)

Back to top

 

11. What about the Integrated Shield Plans?

Having disability insurance like CareShield Life is good, but only if your health insurance is settled first. As the government’s MediShield Life only offers basic coverage, we highly recommend opting for an Integrated Shield plan to supplement your health insurance. 

This plan serves as a private medical insurance policy, enhancing your existing coverage under MediShield Life. It achieves this by coupling MediShield Life with an added layer of private insurance coverage, provided by a private insurer. There are various plans are available for you to make a full comparison of Intergrated Shield Plans:

Basic Plans

1. MediShield Life
2. Income IncomeShield Plan C*
3. Income Enhanced IncomeShield C*

Standard Integrated Shield Plan (for Public Hospital Class B1 coverage)

1. Income IncomeShield Standard Plan
2. AIA HealthShield Gold Max Standard Plan
3. Great Eastern GREAT SupremeHealth STANDARD
4. Prudential PRUShield Standard Plan
5. Singlife Shield Standard Plan
6. HSBC Life Shield Standard Plan
7. Raffles Shield Standard Plan

Class B1 Plans

1. AIA HealthShield Gold Max C^*
2. AIA HealthShield Gold Max B Lite
3. Great Eastern GREAT SupremeHealth B^*
4. Great Eastern GREAT SupremeHealth B Plus
5. Income IncomeShield Plan B^*
6. Income Enhanced IncomeShield Basic
7. Prudential PRUShield B^*
8. Raffles Shield B
9. Singlife Shield Plan 3

Class A Plans

1. AIA HealthShield Gold Max B
2. Great Eastern GREAT SupremeHealth A Plus
3. HSBC Life Shield Plan B
4. Income IncomeShield Plan A^*
5. Income Enhanced IncomeShield Advantage
6. Prudential PRUShield A^*
7. Prudential PRUShield Plus
8. Raffles Shield A
9. Singlife Shield Plan 2

Private Hospitals Plans

1. 1. AIA HealthShield Gold Max A
   2. Great Eastern GREAT SupremeHealth A^*
   3. Great Eastern GREAT SupremeHealth P Plus
   4. HSBC Life Shield Plan A
   5. Income IncomeShield Plan P^*
   6. Income Enhanced IncomeShield Preferred
   7. Prudential PRUShield Premier
   8. Raffles Shield Private
   9. Singlife Shield Plan 1
   10. Singlife Shield Starter

All plans marked with an asterisk (*) above are no longer offered to new members. Existing members may continue to renew their policies.

For those with dependents, consider sorting out your life insurance. This ensures that they will still have a roof over their heads and some money to live on should one die an untimely death.

Once that’s sorted, you can move on to disability insurance to beef up your protection further. Consider opting for a CareShield Life Supplement if you can afford it. It covers severe disability at any age (not just when you’re old) so think of it as a hedge against accidents as well.

But if you’ve reached your limit for insurance spending and are relatively young, you can always postpone the purchase of a CareShield Life supplement to a later age.

Found this article useful? Share it with anyone who’s eligible for CareShield Life.

---

About the author

Caleb Leong is passionate about travelling the world and getting involved in cross-cultural works. Freelance digital marketing and content writing is a way for him to express himself creatively while earning his keep. He unwinds by diving into a variety of music genres. Living in a digitally disrupted world, he’d like to offer a different perspective on finances to show people the possibilities of what goes beyond a typical “Singaporean life”.