CareShield Life was introduced in October 2020, and added a massive new protection pillar to Singaporeans’ health insurance portfolios. As a compulsory disability insurance policy, CareShield Life sits alongside MediShield Life which acts as our compulsory, basic national health insurance policy.
Qualifying for CareShield Life payouts requires individuals to meet the criteria of being unable to perform 3 Activities of Daily Living (ADLs). Payouts also started at $600 a month in 2020, and have risen at 2% per year to $662 per month in 2025.
Those who think this scheme is too restrictive or wish to have additional payouts can look at two types of policies: CareShield Life Supplements offered by private insurers, or standalone disability income insurance plans.
Here’s how both types of policies work, including keys differences to help you understand which might serve your needs better.
Read Also: Complete Guide To Buying A CareShield Life Supplement Plan
#1 Difference in Definitions Of Disability Between CareShield Life Supplements And Disability Income Insurance
CareShield Life Supplements payouts are tied to one’s disability based on the inability to perform ADLs, which is determined by one of the Ministry of Health-accredited severe disability assessors.
While the threshold for CareShield Life is the inability to perform 3 ADLs, the threshold for Careshield Life Supplements may be lower. Payouts under certain CareShield Life Supplements can be made when the insured is unable to perform 1 or 2 ADLs. For example, Great CareShield only requires you to be unable to perform 1 of the 6 ADLs to qualify to start receiving payouts.
In contrast, disability income insurance payouts are generally triggered when you are assessed to be unable to work in your original occupation or an occupation suited for your training, experience or education to earn an income. As it is meant to replace your income, both payouts and premiums may be higher as well.
Read Also: Guide To Understanding The Different Types Of Disability Insurance Policies In Singapore
#2 Payout Duration And Deferment For CareShield Life Supplements And Disability Income Insurance
As an enhancement to the mandatory CareShield Life, all CareShield Life Supplements provide additional monthly payouts for life, as long as you continue to be severely disabled. This is on top of any one-time benefits or ancillary limited-time payouts for rehabilitation, dependants, or caregivers.
Disability income insurance policies have a fixed term during which benefits would be paid, such as 5 or 10 years, or up to a certain age, such as 65, 80 or even lifetime. This can help reduce your premiums, if you are not covered for life. At the same time, you may not need to replace as much of your income after your retirement age.
Note that while CareShield Life payouts will be made as soon as the following month after the completed claim application (with accompanying assessor report) is submitted, CareShield Life Supplements typically have a deferment period before payouts will be made. Deferment periods also apply for disability income policies.
Read Also: Disability In Singapore: Why I Left My Job To Be The Primary Caregiver For My Husband
#3 Payment Modes For Premiums
Premiums for a CareShield Life Supplement plan can be paid either in cash or using funds from your MediSave account or that of your family members (spouse, parents, children, siblings, or grandchildren).
However, there is a limit of $600 that you can use for each person insured per calendar year, and any remaining CareShield Life Supplement premiums would need to be paid for in cash.
For disability income insurance, all premiums will need to be paid for in cash.
Read Also: How Much CareShield Life Premiums Will You Be Paying? (And Subsidies You’ll Receive)
#4 Eligibility And Coverage
The final key difference between the two is in the eligibility for entry and coverage.
CareShield Life (and consequently CareShield Life Supplements) are only for Singapore Citizens and Permanent Residents (PRs) aged 30 and above. Those with pre-existing conditions will still be eligible for enrolment, and the coverage is for life.
In contrast, disability income insurance is meant to replace your monthly income when you’re unable to work, which means you need to be employed in order to enjoy the coverage and be eligible for payouts. Private insurers would also tend to either impose additional premium loading for pre-existing conditions or outright decline your application.
As disability income insurance plans are provided by private insurers, there is no limitation on nationality. Anyone who meets the insurer’s criteria can purchase them, not just Singaporeans and PRs. You also do not need to wait till you’re 30 to be covered under disability income insurance.
Depending on your needs, CareShield Life and CareShield Life supplements may be sufficient for your needs. For those with pre-existing conditions, Careshield Life and its supplements can be a blessing. However, if you are a foreigner living in Singapore or if your income replacement needs are high, disability income insurance may be worth considering.
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