CareShield Life 2025 Explained: Benefits, Changes, and How to Maximise Your Coverage

On 27 August 2025, the Singapore government confirmed upcoming changes to CareShield Life, the national disability insurance scheme. Starting 2026, payouts will rise at a faster rate—but so will premiums.

This balance of higher protection and higher costs has left many wondering: What exactly is CareShield Life, and how do these changes affect me?

This comprehensive guide breaks it down: what CareShield Life is, who qualifies, what’s new in 2025, and how you can strengthen your financial safety net with supplements.

What is CareShield Life?

By age 65, about 1 in 2 Singaporeans is likely to experience severe disability, which means needing help with basic daily activities. CareShield Life, launched in October 2020, was designed to address this growing risk.

It is a national long-term care insurance scheme that provides monthly cash payouts if you become severely disabled. These payouts continue for life as long as the condition lasts, and they apply even if you’re living overseas.

What Counts as Severe Disability?

To qualify for CareShield Life benefits, a person must be unable to perform at least 3 out of 6 Activities of Daily Living (ADLs):

1. Washing – Bathing or showering, including getting in and out.

    

2. Dressing – Putting on or removing clothes and medical appliances.

    

3. Feeding – Eating prepared food independently.

    

4. Toileting – Using the toilet and managing bladder/bowel function.

    

5. Mobility – Walking or moving from room to room on level ground.

    

6. Transferring – Moving from bed to chair (or wheelchair) and back.

    

To claim, you must undergo an MOH-accredited assessment:

• $100 at a clinic or $250 at home (waived for first-time applications and if you are found severely disabled).

   

• Nursing home residents can use a Resident’s Assessment Form instead.

   

Once verified, you can apply for payouts via the Agency for Integrated Care (AIC) using your Singpass.

Who is Covered by CareShield Life?

Coverage depends on your year of birth:

• Born in 1980 or later → Automatically enrolled at age 30, regardless of health conditions.

   

• Born between 1970–1979 → If you had ElderShield 400, you were auto-enrolled in Dec 2021.

   

• Born before 1979 → Participation is optional, as long as you’re not already severely disabled.

   

• New Citizens/PRs from Oct 2020 onwards → Mandatory enrolment (unless already severely disabled).

   

If you’re unsure, you can check your status via the CareShield Life e-Service.

What’s New in 2025?

In August 2025, the CareShield Life Council announced enhancements that will take effect from January 2026:

1. Higher Payouts

The annual payout increase will double from 2% to 4% until age 67 (or until a claim is made).

2. Premium Adjustments

To support these bigger payouts, premiums will also increase. Without subsidies, premiums would have jumped by $126 in 2026. With government support, the rise will instead range between $38–$75 annually from 2026–2030.

3. Expanded Subsidies

Over $570 million in financial aid will be rolled out:

• Broad-based support to cushion premium hikes.

   

• Means-tested subsidies of up to 30% for lower- and middle-income households.

   

• Additional Premium Support for those still unable to afford premiums after subsidies.

   

4. Streamlined Assessments

A single disability assessment will now be accepted across CareShield Life, the Home Caregiving Grant, and other related schemes—making life easier for families.

Bottom line: Bigger benefits, slightly higher costs, but stronger safety nets for all.

CareShield Life vs ElderShield

CareShield Life has replaced ElderShield with stronger protection.

ElderShield was a starting point. CareShield Life is the long-term solution that keeps pace with inflation and longer lifespans.

MediShield Life vs MediSave: What’s the Difference?

Though they sound similar, MediSave and MediShield Life serve very different purposes:

Think of it this way:

• MediSave = healthcare wallet (your savings).

   

• MediShield Life = insurance shield (protects against big bills).

   

• CareShield Life = daily support (cash for living needs if severely disabled).

   

CareShield Life Premiums

• Premiums depend on age at entry and gender.

   

• Women generally pay more due to longer life expectancy and higher disability risk.

   

• Premiums increase each year until age 67, in line with payout growth.

   

• After a claim, you no longer pay premiums.

   

• All premiums can be paid from MediSave.

   

Want specifics? Use the official MOH Premium Checker.

CareShield Life Payouts

• Started at $600/month in 2020.

   

• Grew 2% yearly till 2025.

   

• From 2026 onwards, 4% yearly until age 67 or until you claim.

   

Once you begin receiving payouts—or once you turn 67—your payout is locked in for life.

Should You Upgrade with a Supplement?

By default, CareShield Life payouts are modest. For example, in 2025, payouts are about $662/month, increasing thereafter. While useful, this amount may not fully cover long-term care, especially in old age.

Interestingly, MOH data shows many early claimants were young adults, with the median age being 39 years old. Conditions ranged from congenital disabilities to chronic illnesses.

To strengthen protection, you can buy CareShield Life supplements from private insurers (Great Eastern, Singlife, Income). Supplements can:

• Reduce the disability threshold (from 3 ADLs down to 2 or even 1).

   

• Increase monthly payouts.

   

• Add inflation-linked growth to benefits.

   

How to Choose a Supplement Plan

When considering a supplement, ask yourself:

1. How much monthly support would I need?

    

   • Minimal support if cared for by family.

      

   • Higher amounts if professional or nursing home care is required.

      

2. What inflation protection do I want?

    

   • Costs of care rise over time; choose plans with payout escalation.

      

3. Which insurer suits me best?

    

   • Only three providers exist, so comparison is relatively straightforward.

      

Supplements are optional, but they can significantly ease financial strain in a disability scenario.