Careshield Life: Disability Insurance Singapore

Careshield Life is a long term disability insurance in Singapore. Somehow, it is not receiving much publicity. It is a layer of protection that the government has set in place to help Singaporeans for long term disability needs. The 3 shields that Singaporeans have are the Medishield, Eldershield and Careshield. (Read More: Insurance for investors)

What is Careshield?

CareShield Life is a national long-term care insurance scheme designed to provide basic protection against long-term care costs, from 2020. CareShield Life will feature higher payouts that increase over time with no cap on payout duration, to provide better protection against the uncertainty of long-term care costs if you become severely disabled.

(Source: Careshield Life)

How does it benefit me?

Careshield Life has these 4 properties

1. Lifetime Cash Payouts: As long as the person is severely disabled.
2. Payouts will increase over time. It will start from $600 in 2020.
3. Premiums are fully payable by Medisave.
4. There will be government subsidies to help defray some of the cost.

Is this compulsory?

Coverage will begin when you are 30 years old. Thus, if you are born from 1980 to 1990 (aged 30 to 40 in 2020), you will be automatically covered by CareShield Life in 2020. If you are born after 1990 (aged below 30 in 2020), you will be automatically covered by CareShield Life when you turn 30.

If you are born in 1979 or earlier, you can choose to join CareShield Life in 2021, if you are not severely disabled. To make joining CareShield Life more convenient, you will be automatically covered by CareShield Life from 2021 if you are a Singapore Resident born between 1970 and 1979 and are insured under the ElderShield 400 scheme and are not severely disabled. If you are automatically covered and do not wish to participate in the scheme, you have up to 31 Dec 2023 to opt out from the scheme and get your premiums refunded.

In other words, it is compulsory for those born in 1980 and after.

Is this really necessary?

As Singapore population is slowly aging, 1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime, and may need long-term care. We never know whether an disability may happen, but what we can do is always to prepare for it.

In Wealthdojo, we believe in bespoke financial planning. Whether it is money maximization, insurance or investing, we believe that everyone is different and the planning should be suited for you.

There are many myths related to getting life insurance, I hope these will continue to be myths and let’s financial educated on making the right decisions. 

All opinions above are my own. Please view our disclaimer page to understand more.

I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page!

Now that you’ve read about learnt about Careshield Life: Disability Insurance Singapore, I challenge you to read this article (Life Insurers to change definition of Critical Illness) to push your understanding further!