Premiums Careshield Life — exact numbers and how they compare (worked examples)

 Baseline published numbers

• At launch (2020) the annual CareShield Life premiums were published as approximately S$206 for a 30-year-old male and S$254 for a 30-year-old female. From 2020 to 2025, both premiums and payouts were set to increase by 2% per year. Premiums are payable until age 67 (or when you make a successful claim), and can be paid using MediSave. Central Provident Fund+1

Example calculation: premium growth 2020 → 2025 (2% p.a.)

• Starting point (2020): Male S$206; Female S$254.

• Growth = (1.02)^5 over five years (2020 → 2025 inclusive). Calculated results (rounded):

  • Male 2025 estimate ≈ S$227.44 per year.

  • Female 2025 estimate ≈ S$280.44 per year.
    These are approximate published growth projections (official pages note premiums/payouts rising 2% p.a. to 2025). Central Provident Fund+1

What those premiums mean monthly

• Male 2025 premium ≈ S$227.44 / year ≈ S$18.95 / month.

• Female 2025 premium ≈ S$280.44 / year ≈ S$23.37 / month.

• These are typically deducted from MediSave (so little immediate cash outflow), and family members can contribute MediSave or cash top-ups if needed. Central Provident Fund

ElderShield premiums (legacy)

• ElderShield premiums were age-set at entry and historically were modest and non-increasing; the specifics vary by vintage and plan (ElderShield 300 or 400). ElderShield payouts are limited (S$300 or S$400 per month) and for limited years — so even though premiums could be modest, the total coverage value is much lower. (See MOH/CPF comparisons.) HealthHub+1

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5) Subsidies, participation incentives and support mechanisms that reduce effective cost

One of the crucial financial arguments in favor of CareShield Life is that the gross premium is not the same as what most people actually pay net of government support. The government layered multiple supports into CareShield Life:

A. Means-tested premium subsidies

• Up to 30% premium subsidies are available for lower and middle-income individuals/households, reducing the MediSave deduction or cash amount required. The means test uses household income and other factors. This reduces the real cost for many Singaporeans. Central Provident Fund+1

B. Participation incentives (transitional) — historical but relevant to earlier joiners

• In the early rollout the Government offered participation incentives for those born 1979 or earlier who chose to join early (examples: up to S$4,000 over 10 years if joined by certain earlier dates). Timing of those incentives varied: some were for joining by end-2023, others had reduced amounts for joining in 2024, etc. (Those historic incentives lowered early joiners’ effective premiums over time.) Even if you missed the earliest incentive windows, means-tested subsidies and other premium supports remain relevant. Always check CPF / MOH pages for the current applicable incentives for your cohort. Central Provident Fund+1

C. MediSave payment & family support

• Premiums are payable with MediSave, so most people do not experience a direct cash bite. Family MediSave accounts can be used to support an elderly family member’s premiums. This feature makes the scheme financially accessible. Central Provident Fund

Example: effective premium after 30% subsidy

• If your annual premium is S$227.44 and you qualify for the maximum 30% subsidy, your net annual cost = S$227.44 × (1 − 0.30) = S$159.21 ≈ S$13.27 / month — often paid via MediSave, so the out-of-pocket cash effect is minimal.

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6) Comparing value: premiums paid vs expected benefits — simple financial reasoning

To decide whether to join CareShield Life, you should see it as insurance rather than an investment. The question is: for the premiums you pay, how much protection do you get versus staying on ElderShield?

Consider these facts:

• ElderShield payouts: S$300 or S$400 per month for up to 5–6 years (total max payments are therefore limited — e.g., S$300 × 60 months = S$18,000 over 5 years). This helps but is not sufficient for long-term care costs. HealthHub

• CareShield Life payouts: Higher monthly payouts that continue for life if you have severe disability. Because payouts are lifelong, even though premiums look higher up front (and grow modestly), the expected lifetime benefit is much larger for those who eventually require long-term care. CareShield Life

Rough scenario analysis (simplified)

• Suppose a person becomes severely disabled at age 75 and requires lifetime care until age 90 (15 years).

  • ElderShield: max payout maybe S$400 × 60 months = S$24,000 (if person had the S$400 plan and claim conditions met). That’s the upper limit — insufficient for 15 years. HealthHub

  • CareShield Life: monthly payout is higher and for life. Even a modest payout of S$600–S$1,000 per month (hypothetical; actual bands vary and payouts grow over time) over 180 months equals S$108k–S$216k — vastly greater coverage for long-term needs. (Official payout amounts and growth schedules are on CareShield Life pages; this example shows order of magnitude.) CareShield Life

Conclusion from this reasoning: If you value protection against long-term care costs (which are very likely to exceed ElderShield caps), paying modest MediSave premiums into CareShield Life to obtain lifelong payouts is likely a high expected value decision — particularly since premiums can be subsidised and paid from MediSave.