Why are CareShield Life premiums for older cohorts higher than younger cohorts?

The estimated premiums for all cohorts are actuarially determined and are designed to be not-for-profit.

CareShield Life premiums are meant to be paid from age 30 to 67, or until the insured makes a claim. Older cohorts joining CareShield Life will face higher annual premiums as they have fewer years to spread their premium payments as compared to younger cohorts. Older cohorts also have a higher risk of developing severe disability.

The Government will provide premium support for those born 1979 or earlier:

1. Lower- to middle-income Singapore residents will receive Means-tested Subsidies. Up to two-thirds of Singapore resident households will be eligible for CareShield Life subsidies of up to 30%.

2. Singapore Citizens born in 1979 or earlier will receive Participation Incentives, spread over the first 10 years of their policy if they join and are covered under CareShield Life by 31 December 2024. Participation Incentives of up to $4,000 ($400/year) will be provided to those who join and are covered by 31 December 2023, and up to $3,000 ($300/year) for those who join and are covered before 31 December 2024. The participation incentives will be spread equally over 10 years and will be used to offset premiums payable for each year.

3. Those in financial need who are unable to pay for their premiums after premium subsidies can apply for Additional Premium Support from the Government.

For more information on the types of premium support available, you may refer to this page. For information on your personalised premiums and premium support, you may access the CareShield Life Premium Checker e-Service with your Singpass.

This information provided here is sourced from the MOH website.