CareShield Life Not Meant To Cover Entire Cost Of Long-Term Care: Experts

It remains a basic scheme and should be viewed as part of broader support ecosystem

- Joyce Teo

CareShield Life, the national long-term care (LTC) insurance scheme, will be enhanced from Jan 1, 2026, with higher monthly payouts and more government support to help policyholders cope with the resulting premium increases.

But it remains a basic scheme that might cover only a small portion of the overall costs associated with LTC needs, and should be viewed as part of a broader support ecosystem, experts said.

"The public should be aware that there is a broader LTC and elder-care support ecosystem they need to tap when the time comes. CareShield Life isn't designed at all for people to be able to pay for their LTC needs without availing themselves of the broader support schemes," said Associate Professor Walter Theseira from the Singapore University of Social Sciences.

On Aug 27, the Ministry of Health (MOH) said that from 2026, CareShield Life's monthly payouts will grow at a rate of 4 per cent a year, from the current 2 per cent. To mitigate the impact of the resulting premium hikes, the Government will provide an additional $570 million in premium support over the next five years. It said no one will lose coverage due to an inability to pay their premiums.

Policyholders can make claims if they are unable to do at least three of the six activities of daily living (ADLs): bathing, dressing, eating, moving from bed to chair, going to the toilet, and moving around.

Launched in 2020 to replace ElderShield, CareShield Life strengthens the role of insurance in financing LTC. It is mandatory for Singapore citizens and permanent residents born in 1980 or later, and provides higher monthly payouts for life to those with severe disability. The pre-funded insurance scheme is optional for those born in 1979 or earlier.