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The Ultimate Guide to CareShield Life

Singapore's Comprehensive Long-Term Care Insurance Program

Reading time: 9 minutes

Are you tired of worrying about what will happen if you become severely disabled and can't perform basic daily tasks like bathing and dressing?

Well, fear not! CareShield Life has got you covered (literally and figuratively). This long-term care insurance program in Singapore is here to save the day and provide financial support if you find yourself in a pickle.

And the best part? It's compulsory for Singaporeans and Permanent Residents aged 40 and above, so you don't even have to worry about remembering to sign up. Just sit back, relax, and let CareShield Life take care of the rest (as long as you're willing to pay the premiums, of course).

Inside this article, we'll explore:

  1. Introduction to CareShield Life
  2. How CareShield Life works
  3. The 3 Benefits of CareShield Life
  4. CareShield Life vs ElderShield - which is better?
  5. Eligibility for CareShield Life
  6. The Importance of Planning Ahead: How CareShield Life Provided Financial Support and Peace of Mind for Xiao Hui and her Family


1. Introduction to CareShield Life

If you're a Singaporean or Permanent Resident aged 40 or above, you've probably heard of CareShield Life. But what exactly is it, and how does it work?

CareShield Life is a long-term care insurance program in Singapore that provides financial support to individuals who have severe disability or are unable to perform at least three activities of daily living (ADLs) without substantial support from another person. ADLs include tasks such as bathing, dressing, toileting, transferring (e.g., from bed to chair), feeding, and mobility (e.g., walking or moving around).

The purpose of CareShield Life is to help individuals cover the costs of long-term care services if they become severely disabled and are unable to perform ADLs independently. This can include nursing home care or home care services, such as help with bathing and dressing, meal preparation, and housekeeping.

CareShield Life is funded through premiums paid by enrolled individuals and subsidies from the government. It is administered by the Ministry of Health and managed by the Central Provident Fund Board.

2. How CareShield Life Works

CareShield Life is a special kind of insurance that helps people in Singapore pay for things they need if they get very sick and can't do things like bathing, dressing, or walking by themselves anymore.

The cash payout is a payment that you can receive from CareShield Life if you become severely disabled and are unable to perform activities of daily living (ADLs) independently.

  1. Bathing: The ability to wash oneself using a bath or shower.
  2. Dressing: The ability to put on and take off clothes, including fastening buttons and zippers.
  3. Toileting: The ability to use the toilet and maintain personal hygiene.
  4. Transferring: The ability to move from one position to another, such as from a bed to a chair.
  5. Feeding: The ability to prepare and eat food.
  6. Mobility: The ability to move around and perform tasks such as walking, standing, and climbing stairs.

These tasks are often used as a measure of an individual's functional ability and independence. For example, if an individual is unable to perform at least three ADLs without substantial support from another person, they may be considered severely disabled.

The cash payout is designed to help cover the costs of long-term care services, such as nursing home care or home care services. These services can be expensive, and the cash payout is meant to help alleviate some of that financial burden.

The amount of the cash payout depends on the severity of your disability and your age at the time of enrollment in CareShield Life. The payouts are adjusted annually to account for inflation. For example, if you are severely disabled and were enrolled in CareShield Life at age 50, you might receive a higher cash payout than someone who was enrolled at age 30, because the older person would have a longer period of time during which they would need to pay for long-term care services.

You can receive the cash payout for as long as you are severely disabled and unable to perform ADLs independently. If your condition improves and you are able to perform ADLs again, you will no longer be eligible for the cash payout.

When you sign up for CareShield Life, you have to pay a little bit of money each month. This is called a premium. The amount you have to pay depends on how old you are and how much money you have saved up in a special account called the Central Provident Fund (CPF).

3. The 3 Benefits of CareShield Life

There are several benefits to enrolling in CareShield Life, including:

  1. Coverage for long-term care needs: CareShield Life provides financial support for long-term care services, which can be a significant expense for individuals and their families. Long-term care services include nursing home care, home care services, and other types of support for individuals who are severely disabled and unable to perform ADLs independently.
  2. Flexibility in coverage options: CareShield Life offers the option to purchase additional coverage for higher payouts, which can provide additional financial support for long-term care needs. This allows individuals to tailor their coverage to their specific needs and financial situation.
  3. Government subsidies: CareShield Life is funded through premiums paid by enrolled individuals and subsidies from the government. This means that the cost of CareShield Life is partially funded by the government, making it more affordable for individuals.

4. CareShield Life vs ElderShield - which is better?

It's difficult to say definitively which long-term care insurance program is "better," as it depends on an individual's specific needs and circumstances.

CareShield Life and ElderShield are both long-term care insurance programs in Singapore that provide financial support to individuals who become severely disabled and are unable to perform activities of daily living (ADLs) independently. However, there are some key differences between the two programs that may make one more suitable for certain individuals:

  • Premiums: CareShield Life premiums are generally higher than ElderShield premiums, especially for individuals who enroll at a later age.
  • Health: If you have a pre-existing medical condition or are at higher risk of becoming severely disabled, CareShield Life may provide more comprehensive coverage and higher payouts compared to ElderShield.
  • Coverage: CareShield Life provides higher monthly payouts and longer coverage periods compared to ElderShield. CareShield Life also offers the option to purchase additional coverage for higher payouts.

Ultimately, it's important to carefully consider your own needs and circumstances when deciding which long-term care insurance program is right for you. You may want to consider factors such as your age, health, and financial situation when making this decision.

It may also be helpful to consult with a financial planner or seek more information from the Ministry of Health or Central Provident Fund Board.


5. Eligibility for CareShield Life

To be eligible for CareShield Life, you must meet the following criteria:

  • Age requirement: CareShield Life is compulsory for Singaporeans and Permanent Residents aged 40 and above, and voluntary for those aged 30 to 39. This means that if you are aged 40 or above, you are required to enroll in CareShield Life unless you opt out or are exempted due to certain conditions (e.g., terminal illness). If you are aged 30 to 39, you have the choice to enroll in CareShield Life or opt out.
  • Citizenship status: CareShield Life is only available to Singaporeans and Permanent Residents. If you are a foreigner living in Singapore on a work or student visa, you are not eligible to enroll in CareShield Life.


Here are a few websites that provide information on CareShield Life in Singapore:


These websites provide information on the eligibility requirements, coverage, premiums, and claims process for CareShield Life, as well as frequently asked questions and resources for enrollees.

You can also visit your local CPF service center for more information and assistance with enrolling in CareShield Life.

The Importance of Planning Ahead:
How CareShield Life Provided Financial Support and Peace of Mind for Xiao Hui and her Family

Xiao Hui was a 33-year-old woman living in Singapore. She had always been healthy and active, but one day she was involved in a serious car accident that left her severely disabled and unable to perform activities of daily living (ADLs) independently. ADLs include tasks such as bathing, dressing, toileting, transferring (e.g., from bed to chair), feeding, and mobility (e.g., walking or moving around).

When Xiao Hui was 30 years old, she had received information about CareShield Life, a long-term care insurance program in Singapore that provides financial support to individuals who become severely disabled and are unable to perform ADLs independently. At the time, enrollment in CareShield Life was voluntary for individuals aged 30 to 39, so Xiao Hui had the choice to enroll or opt out.

Xiao Hui and her husband had given the matter some thought and decided to enroll in CareShield Life, even though they never expected to actually need it. They figured it was better to be safe than sorry, and they wanted the peace of mind that comes with having a safety net in place.

When Xiao Hui was involved in the car accident and became severely disabled, her husband was glad they had made the decision to enroll in CareShield Life. They began receiving monthly cash payouts to help cover the costs of her long-term care services, which were a lifesaver for the family.

Xiao Hui and her husband were grateful for the peace of mind and financial support provided by CareShield Life. They knew that without it, they might have struggled to afford the long-term care services that Xiao Hui needed. They were glad they had made the decision to enroll in CareShield Life, even though they had never expected to need it.

As Xiao Hui began her long journey to recovery, the monthly cash payouts from CareShield Life allowed her and her family to focus on her well-being without worrying about the financial burden. They were able to afford the nursing home care and home care services that Xiao Hui needed, and they were able to make necessary adjustments to their home to make it more accessible for her.

Despite the challenges they faced, Xiao Hui's family remained hopeful and determined to support her in any way they could. They were thankful for the support provided by CareShield Life, which allowed them to focus on what mattered most – Xiao Hui's recovery and well-being.

As Xiao Hui worked towards regaining her independence, she was grateful for the peace of mind and financial security provided by CareShield Life. She knew that without it, her journey to recovery would have been much more difficult. She was glad she had taken the time to enroll in the program when she was younger, and she encouraged others to do the same.

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Meet Ben

The Passive Income Guy

Hi, my name is Ben and I'm glad to help you look into long-term care options available in Singapore.

I understand that planning for long-term care can be overwhelming, and I am here to provide guidance and support to help you make informed decisions about your coverage. Whether you are looking for information about CareShield Life in Singapore or other long-term care insurance options. I am here to help you understand your options and determine the best solution for your needs and circumstances.

As a financial planner, I have helped dozens of families understand their options and make informed decisions about their long-term care coverage.

Serving more than 125+ clients
Former accountant turned financial planner
Million Dollar Round Table Qualifier (MDRT) 2023
Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB)
Been in the wealth management industry since 2017
Graduated top of class with a degree in accounting and finance
Associate Director of Sales with Dunn and Partners – a branch of Manulife Financial Advisers (MFA)

TESTIMONIALS

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Ben was a lifesaver when it came to understanding my long-term care options. He helped me navigate the complex landscape of insurance programs and provided personalised recommendations based on my needs and circumstances. I'm so grateful for his help – I feel much more confident and secure knowing that I have the financial support I need for the future.

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Working with Ben was a breeze – he made the process of understanding and enrolling in CareShield Life supplements so much easier for me. He was patient and thorough, answering all of my questions and concerns. I highly recommend Ben to anyone looking for guidance and support in securing their long-term care coverage.

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