What is CareShield Life and what does it pay out if I become disabled?

CareShield Life Overview

CareShield Life is a national long-term care insurance scheme administered by the government, designed to provide basic financial support if a Singaporean or Permanent Resident develops severe disability. Premiums are paid automatically from your Medisave Account (Source: CPF Board).

Eligibility and Payout Triggers

CareShield Life coverage starts automatically at age 30, or upon entry into Singapore (for new PRs/citizens), and continues for life. The scheme kicks in when you are certified to be unable to perform at least three out of the six Activities of Daily Living (ADLs). These ADLs include washing, dressing, feeding, toileting, mobility, and transferring.

Payout Structure

If you meet the criteria (inability to perform 3 of 6 ADLs), CareShield Life pays a monthly cash payout for as long as you remain disabled. The standard payout amount is S$600 or more per month (Source: CPF Board). This payout is intended to help cover long-term care expenses.

Medisave Usage and Supplements

Premiums for the basic CareShield Life scheme are payable from your Medisave Account. For the basic scheme, the government allows up to S$600 per year of your Medisave to be used for CareShield Life premiums (Source: CPF Board).

If you opt for a CareShield Life Supplement offered by private insurance companies (which can be paid for using Medisave up to the S$600 limit, with any excess paid in cash), you can receive higher payouts or qualify for payouts upon inability to perform just one or two ADLs, depending on the supplement plan chosen. These supplement payouts stack with the government’s basic payout.