Born in 1979 and earlier? Here’s how “CareShield Life” will affect you.

Born in 1979 and earlier? Here’s how “CareShield Life” will affect you.

Are you confused about the new CareShield Life as we are? Don’t worry, we promise to make it simple for you to understand.

First things first, if you’re born in 1979 and earlier (turning 39 and older this year), CareShield Life is not compulsory for you.

But the Government is keen to put you on the scheme. How so?


They are giving out candies (I mean, financial incentives) to sweeten the policy.

If you sign up within the first two years from 2021, you will receive incentives between $500 to $2,500. Do take note that the incentives will be spread out within 10 years.

The older you are, the more incentives you will get.

Source: The Straits Times


You will be auto-enrolled into the scheme if you’re aged 41 to 50 in 2020 (born in 1970 to 1979).

But don’t worry, you are given a choice to opt out and you’ll be given up to Dec 31, 2023 to make a decision.

Once opted out, you’ll also get a refund for your CareShield Life premiums.

How much to top-up?

CareShield Life payouts are higher compared to ElderShield300 and ElderShield400.

It also guarantees lifetime payout unlike ElderShield which caps at five to six years.

Therefore, existing ElderShield policyholders who permanently switch over to CareShield have to “upgrade” their plans.

Existing ElderShield400 policyholders have to pay a base premium for 10 years or until age 67 (whichever is longer).

Those on ElderShield300 will have to pay a base premium plus a catch-up premium for the first 10 years because policyholders currently pay lesser in premiums compared to those on ElderShield400.

If I’m not on ElderShield?

If you’ve opted out of ElderShield and wish to opt in for CareShield, you’ll have to pay a base premium as well as a catch-up premium.

Low-wage workers

There’re subsidies to help lower-income workers afford Eldershield.

Source: The Straits Times

Still confused?

This chart might clear your doubts.

Featured image: The Business Times

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