In a new update for 2025, the Ministry of Health has confirmed that the monthly payout for Singapore’s CareShield Life scheme has increased to S$662. This boost is part of the scheme’s original design, where payouts grow each year to better support people with long-term care needs. The rise in payouts is important for those who are severely disabled and depend on this financial help for daily care.
CareShield Life is a national insurance programme that provides monthly cash payouts to Singaporeans who are unable to perform at least three Activities of Daily Living (ADLs), such as washing, dressing, or feeding themselves. These payouts are meant to help cover the costs of long-term care, including home-based services, nursing support, or hiring a caregiver.
What Is CareShield Life?
CareShield Life was launched in 2020 as a replacement for the older ElderShield plan. It is a compulsory scheme for Singaporeans born in 1980 or later, while those born earlier can choose to join if they are not already severely disabled. The programme is designed to provide lifetime cash support once someone becomes severely disabled. Importantly, the payouts continue for life, as long as the person remains in that condition.
Premiums for CareShield Life are paid using MediSave funds and can also be paid by family members. Once a successful claim is made, premium payments stop, and the individual receives the payout without further costs.
Increase to S$662 in 2025
When CareShield Life started, the monthly payout for new claimants in 2020 was S$600. This amount was set to grow by 2% each year until the person makes a claim or turns 67, whichever comes first. In line with this growth, the monthly payout for 2025 has now reached S$662. This is the amount that anyone who makes a successful claim in 2025 will receive each month for life.
Here is how the payout has grown over the years:
| Year | Monthly Payout (Approx.) |
|---|---|
| 2020 | S$600 |
| 2021 | S$612 |
| 2022 | S$624 |
| 2023 | S$637 |
| 2024 | S$649 |
| 2025 | S$662 |
Once someone starts receiving payouts, the amount remains fixed and does not continue to increase each year. For example, if a person starts receiving payouts in 2025, they will continue to get S$662 per month, even if the standard payout rises in later years.
Conditions for Receiving Payouts
To qualify for CareShield Life payouts, a person must be assessed as severely disabled. This means they must be unable to do at least three of the six Activities of Daily Living (ADLs). These activities include:
- Washing
- Dressing
- Feeding
- Toileting
- Walking or moving around
- Transferring (for example, from bed to chair)
The disability assessment must be done by approved assessors, such as doctors or therapists, and needs to be reviewed regularly.
What Happens After 2025?
Starting from 2026, CareShield Life will see even more changes. One of the biggest updates is that the annual increase in payouts will rise from 2% to 4%. This means payouts will grow faster to keep up with the rising cost of care.
For example, someone who becomes disabled in 2030 may receive a monthly payout of around S$806 under the new 4% growth rate, compared to S$731 under the older 2% rate. This change is aimed at making long-term care more affordable in the future years.
To support the higher payouts, premiums will also increase at a faster rate. From 2026, CareShield Life premiums will grow at 4% each year instead of the current 2%. This change applies to all policyholders and is necessary to maintain the programme’s sustainability.
Government Support for Higher Premiums
To help with the rising premiums, the government will offer S$570 million in financial support. Of this, S$440 million will go towards slowing down the premium increase for all members, while S$130 million will provide more help to lower- and middle-income households.
In addition to this, existing government subsidies will remain in place. These subsidies are based on household income and the value of the home. Singapore Citizens can receive premium subsidies of between 20% and 30%, depending on their situation.
Joining Rules and Future Proposals
Currently, all Singaporeans and Permanent Residents born in 1980 or later are automatically enrolled in CareShield Life. Those born in 1979 or earlier can join the scheme if they are not already severely disabled.
From 2026, there will be changes to these rules. New members must not have any pre-existing severe disabilities at the time of joining. This rule will not affect those who are already part of the scheme.
There have also been suggestions from charities and other groups to make the scheme more inclusive. One proposal is to reduce the disability requirement from three ADLs to just two. This would allow more people to qualify for payouts, but no final decision has been made yet.
All Singaporeans need to understand how CareShield Life works, especially as they grow older or care for elderly family members. Knowing the rules and updates can help ensure that they are better prepared for any long-term care needs.
