Why is MediShield Life able to provide universal coverage for all Singaporeans, while CareShield Life is not able to?

The two insurance schemes are different. CareShield Life insures against the risk of needing long-term care, which is most likely to occur in old age, near the end of our lives. Premiums are pre-funded, paid largely during an individual’s working years, and stop when an insured is much older or becomes severely disabled.

While there is some pre-funding for MediShield Life, premiums continue to be paid for life. As such, pre-funding does not occur to the extent it does for CareShield Life.

It may therefore not be feasible for everyone to join CareShield Life, as premiums would be high for those joining later as they would have not been able to benefit from the pre-funding through premium payments in the earlier years.