Singapore’s national long-term care insurance scheme, CareShield Life, is set for major changes in 2026. The government has announced that both premiums and payouts will increase by 4% every year, starting in 2026. This step aims to make the scheme more sustainable and to provide better support for people who face severe disabilities.
CareShield Life was launched in 2020 as a compulsory program to give lifelong monthly payouts to citizens who are unable to perform basic daily activities. These payouts help families manage long-term care costs without depending fully on personal savings.
What is CareShield Life and Why It Matters
CareShield Life replaced the earlier ElderShield scheme to provide wider coverage and stronger financial support. It is compulsory for Singapore Citizens and Permanent Residents born in 1980 or later, and it covers over 1.9 million people today.
The scheme is designed to give monthly payouts for life to people who cannot perform at least three out of six Activities of Daily Living (ADLs), such as feeding, dressing, or moving around. This financial support helps reduce the burden on families and caregivers.
Automatic Coverage and Who Can Join
All Singapore Citizens and Permanent Residents born in 1980 or later are automatically enrolled once they turn 30. Those born before 1980 can join voluntarily, provided they are not severely disabled at the time of application.
Applications can be made online using Singpass, and once the policy starts, it cannot be canceled after the 60-day free-look period. This ensures that everyone gets lifelong protection against severe disability.
Bigger Payouts from 2026
When CareShield Life started in 2020, the monthly payout was S$600. This amount has been increasing every year. As of now, payouts are around S$662 per month.
From 2026, payouts will grow at 4% annually, up from the current 2%.
For example:
- A person who becomes severely disabled in 2026 may receive around S$704 per month.
- By 2030, payouts may reach S$824 per month, depending on the age and the premium history of the insured person.
Once someone starts receiving payouts, they do not need to pay any more premiums, and the payouts will continue for life.
Premiums to Increase at the Same Rate
To support the growing payouts, premiums will also increase by 4% per year starting in 2026. These premiums are deducted automatically from MediSave accounts, and family members can use their MediSave to pay premiums for relatives.
| Year | Annual Growth Rate | Applied To |
|---|---|---|
| 2020 | 2% | Premiums and Payouts |
| 2025 | 2% | Final year of current rate |
| 2026 | 4% | Premiums and Payouts |
| 2030 | 4% | Payouts only |
This structure ensures that the scheme remains financially strong even as care costs rise.
Government Subsidies and Support
The Singapore government has promised S$570 million in financial support between 2026 and 2030 to help citizens adjust to the higher premiums. This includes:
- S$440 million in temporary transition support.
- S$130 million in means-tested subsidies for low- and middle-income groups.
This ensures that no Singaporean will lose coverage due to financial issues. Early joiners will also continue to receive participation incentives over ten years.
How Claims Work
Policyholders can claim CareShield Life benefits when they are certified severely disabled, meaning they cannot perform at least three ADLs such as washing, dressing, or feeding.
Assessments are done by MOH-accredited disability assessors, and the first assessment fee is reimbursed upon claim approval. Once the claim is approved, monthly payouts continue for life, with annual increases from 2026.
Strict Rules for Premium Non-Payment
Premiums are collected by the Inland Revenue Authority of Singapore (IRAS). If someone does not pay, they may face late fees or travel restrictions until payments are made. However, the government assures that coverage will not be taken away if someone faces genuine financial hardship. Subsidies and MediSave funds can be used to clear dues.
Why These Changes Are Important
These 2026 updates show Singapore’s commitment to making CareShield Life financially sustainable while giving better support to the aging population. With longer life expectancy and rising care costs, this step ensures that payouts remain strong for future generations.
However, some groups have raised concerns that the eligibility criteria (three ADLs) may exclude people with moderate disabilities. Middle-income families may also feel the pressure of rising premiums. The government has indicated it will continue to review these concerns.
FAQs
1. What is CareShield Life?
CareShield Life is a compulsory long-term care insurance scheme in Singapore that gives monthly payouts for life to those who become severely disabled and cannot perform at least three ADLs.
2. Who is covered automatically?
All Singapore Citizens and Permanent Residents born in 1980 or later are automatically enrolled once they turn 30, even if they have pre-existing health conditions.
3. How will premiums change in 2026?
Premiums will increase by 4% every year starting in 2026. Payments are made automatically from MediSave accounts, and stop once you start receiving payouts.
4. What happens if I can’t pay my premium?
Subsidies and family MediSave can be used. Coverage continues, and the government provides financial help to ensure no one is left out.
5. How do I make a claim?
Claims are made through the Agency for Integrated Care (AIC). An MOH-accredited assessor must confirm the disability. Once approved, payouts continue for life.
Conclusion
The 2026 CareShield Life changes are a major step toward strengthening Singapore’s long-term care system. With higher payouts, increased premiums, and strong government support, the scheme is being shaped to meet the needs of an aging society. While there may be some challenges ahead, the core idea remains clear — no one should face severe disability without financial protection.