Updated as of Nov 2024

If you are turning 30 or have crossed your 30th birthday, you will have received a letter from CPF regarding the auto-enrollment of Careshield Life.

Here's a quick crash course on the scheme and the actionable items that you should consider to ensure that you are adequately protected.

Who’s managing the scheme?

The scheme is managed by the Central Provident Fund, administered by the Agency of Integrated Care.

What are the odds of severe disability?

1 in 2 healthy Singaporeans aged 65 could become severely disabled in their lifetime and may need long-term care.

A severe disability may arise due to a sudden disabling event (e.g. stroke and spinal cord injuries), the worsening of chronic conditions and diseases (e.g. diabetes), or the progression of illnesses as we age (e.g. dementia).

What are you covered for under the scheme?

The pay-out under CareShield will

amount to $649/month (as of 2024)
last for a lifetime
increase by 2% every year until age 67 or when a successful claim is made
increment in payout is subjected to changes (after 2025)
covers pre-existing conditions

Estimated claim amount assuming that you're 30 years old

In terms of financial planning, the payout under the scheme can be used to offset any caregiver expenses that will surface in the event where you're unable to sustain independent living due to your disability.

How much are you expected to pay?

for an estimate of your premiums payable please refer to this.
premium will increase overtime by 2% per year (subject to changes after 2025)
premiums are payable till age 67 – so long as you enrol before the age of 59
premiums are payable for 10 years if you enrol after the age of 59
cost will be scaled accordingly depending on the entry age

Do You need to do anything today?

If you were born in 1980 or later, you need not take any action, as you will be automatically enrolled in the Careshield Life supplement regardless of any pre-existing condition.

While there is no need for you to do anything for Careshield Life, you might want to explore the option of increasing your coverage using your CPF Medisave via a Careshield Life Supplement.

Careshield Life Supplement Explained

Recognizing that the coverage offered by Careshield Life is insufficient for comprehensive long-term care expenses, the government has allowed a $600/year withdrawal limit from our Medisave account to enhance our coverage with a private insurer offering a Careshield Life Supplement.

According to the study carried out by Singlife, the typical monthly expenditure on long-term care amounts to approximately $2,592, with supplementary lifestyle costs related to an individual's disability totalling around $1,794 (such as medication, nursing services, physiotherapy, etc.).

To safeguard your retirement planning from unexpected lifestyle costs related to disability, it is crucial to enhance your existing careshield life coverage with a careshield life supplement.

If you have yet to settle the gap in your long-term insurance coverage, you can reach out to me and set a meeting to go over what your options are in the current market landscape.

Disclaimer:

This article is meant to be the opinion of the author and is for information purposes only.

This article should not be seen as a financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore

Source:

https://www.careshieldlife.gov.sg/home.html

https://www.aic.sg/financial-assistance/careshield-life

https://www.providend.com/launch-of-careshield-life-in-2020-how-does-it-affect-you/