Older CareShield Life policyholders could enjoy lower premiums as criteria tightens from 2026
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From 2026, those born in 1979 or earlier who have mild and moderate disabilities will no longer be allowed to opt in to CareShield Life.
ST PHOTO: DESMOND FOO
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SINGAPORE – To keep premiums for national long-term care insurance in check, older individuals with mild and moderate disabilities will no longer be able to opt in to the scheme from 2026.
Some seniors will even enjoy lower premiums than what they are paying now, said Senior Minister of State for Health Koh Poh Koon in Parliament.
The aim is to safeguard the sustainability and affordability of the scheme, he said during the debate of the CareShield Life and Long-Term Care (Amendment) Bill, which was passed unanimously on Oct 15.
“By restoring the underwriting criteria for the scheme, we will lower premiums for older Optional Cohort policyholders, who today pay higher annual premiums than Mandatory Cohort policyholders, who joined the scheme at a younger age.”
From 2026, those born in 1979 or earlier who have mild and moderate disabilities will no longer be allowed to opt in to CareShield Life, but those who do not have pre-existing disabilities can still do so.
With this change in underwriting, the risk of claims under the scheme will be reduced, allowing the premiums for those in this cohort to rise at a moderated pace, with some seniors even seeing their premiums reduced.
A policyholder from the Merdeka Generation born in 1952, for instance, would see annual premiums go down by more than $100 in 2026.
“These amendments will help ensure that CareShield Life continues to provide essential financial protection when families need it most, for current and future generations of Singaporeans,” Dr Koh said, stressing that no one would lose CareShield Life coverage due to an inability to pay premiums.
Launched in 2020 to replace the older ElderShield scheme, CareShield Life is mandatory for Singapore citizens and permanent residents born in 1980 or later, from when they turn 30. For those born in 1979 and earlier, participation is optional from 2021
CareShield Life provides higher monthly payouts for life to those with severe disability. In contrast, ElderShield pays out either $300 or $400 each month, and up to a maximum of five or six years.
Policyholders can make claims if they are unable to do at least three of the six activities of daily living independently and require full assistance for bathing, dressing, eating, moving from bed to chair, going to the toilet, and moving around.
The Ministry of Health announced in August 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
It said no one will lose coverage due to an inability to pay their premiums.
Dr Koh pointed out that the concession period for the Optional Cohort to opt into CareShield Life had been extended once, from two to four years. Participation incentives of up to $4,000 had also been provided to offset premiums.
As of June 2025, almost half of this cohort, or about 900,000 individuals, had joined the scheme and sign-ups have levelled off, an indication that those who wanted to enrol in the scheme would have already done so.
A total of 14 MPs spoke in support of the Bill.
Responding to concerns raised by Ms Elysa Chen (Bishan-Toa Payoh GRC), Ms Jessica Tan (East Coast GRC), and Dr Hamid Razak (West Coast-Jurong West GRC) on whether reinstating the underwriting criterion would make the scheme less inclusive, Dr Koh emphasised that for the Mandatory Cohort, CareShield Life coverage is universal, regardless of any pre-existing disability.
This means that a young person with a pre-existing disability will still be auto-enrolled when he or she turns 30. Once assessed to be severely disabled, the individual only needs to pay premiums once, and payouts would be for life.
Legislative amendment allowing government agencies to chase up and recover unpaid premiums through e-mails
Another key amendment was to strengthen the processes by which the authorities can recover money from those who did not pay their premiums, despite having the means to do so.
Dr Koh said such individuals who can afford to, but wilfully decide not to pay their premiums despite repeated reminders, eventually become defaulters.
These unrecovered premiums will then be shouldered by other policyholders of the same age cohort, causing them to pay higher premiums. “This is unfair to those who have been responsibly paying premiums”, added Dr Koh.
Owed premiums that cannot be recovered will also affect the CareShield Life Fund’s financial sustainability, and ultimately affect the scheme’s ability to disburse payouts to other policyholders.
Currently, defaulters are served demand notes, which are formal notices stating their outstanding premiums, and any interest imposed that is payable.
Demand notes are served before any recovery measures can follow, which include imposing interest or penalties, or appointing agents to recover outstanding premiums.
The amendment allows for demand notes to be served through additional channels, such as through e-mails, on top of existing methods such as physical letters and registered mail.
This will help to deal with scenarios when individuals fail to update their addresses or are residing overseas, making it challenging to reach them through traditional postal methods.
Responding to concerns raised by Mr Alex Yam (Marsiling-Yew Tee GRC) and Mr Yip Hon Weng (Yio Chu Kang), Dr Koh reiterated that physical notifications will continue to be sent to all policyholders where necessary, including those who are less tech-savvy.
