Singapore's Disability Insurance Scheme to See Premium and Payout Adjustments

Singaporeans enrolled in the national disability insurance scheme, CareShield Life, will experience changes starting in 2026. Premiums will increase, averaging S$38 to S$75 annually between 2026 and 2030. Simultaneously, the annual growth rate of payouts will double from 2% to 4%. This means a policyholder making a claim in 2030 will receive S$806 per month, compared to S$731 per month under the previous growth rate.

CareShield Life, launched in 2020, provides financial assistance for individuals with severe disabilities, replacing the ElderShield scheme. It is mandatory for those born in 1980 or later, with older cohorts having the option to enroll. The scheme provides monthly cash payouts to policyholders who are unable to perform at least three out of six daily living activities. A review of the scheme led to the government accepting recommendations, including the increased payout growth rate. As of 2024, there were 1,821 active claimants, with over S$26 million paid out in claims. The claimants' ages range from 30 to 93, with a median age of 52.

As of December 2024, S$2.8 billion in CareShield Life premiums had been collected, including government premium support. The Ministry of Health (MOH) anticipates a significant increase in claimants over time as the policyholder pool ages. The low payout ratio is expected, as the collected premiums are intended to fund future obligations. When the scheme was introduced, payouts started at S$600 per month and grew by 2% each year. Those who make claims from 2025 will receive S$662 per month.

In addition to existing premium subsidies, the government will provide S$570 million in additional support. S$440 million will moderate premium increases for all affected policyholders, while the remaining S$130 million will offer more support to low- to middle-income policyholders, with premium subsidies of up to 30% for eligible individuals. Without these support measures, annual premiums would have increased by S$126 on average in 2026.

The enhanced payouts and premiums will be in effect from 2026 to 2030 and will be reviewed afterward. The government will also reinstate the scheme’s underwriting criteria. From 2026, only individuals without pre-existing disabilities will be able to enroll. As of June 2025, 1.93 million Singapore citizens and permanent residents aged 30 and above are covered under CareShield Life, with 535,000 covered under ElderShield. Singapore's annual national long-term care expenditure has almost doubled in the last five years. The MOH noted that among those who develop severe disabilities, half would stay in that state for at least four to five years, while three in 10 could remain in that state for 10 years or more.