The need for long-term care will rise as Singapore’s population ages. 1 in 2 Singaporeans who are healthy at age 65 is expected to become severely disabled by the end of their lives.

Variation in the duration of severe disability and the accompanying costs of long-term care, coupled with shrinking family sizes in Singapore, make it increasingly challenging to rely solely on personal and family savings to pay for one’s long-term care needs. The expected median duration for which severely disabled individuals remain in disability is around 4 years, but 3 in 10 remain in severe disability for 10 years or more.

Long-term care insurance schemes like ElderShield and CareShield Life help Singaporeans to pool their risks together within their cohort so that each Singaporean within that cohort has basic financial protection against the uncertainty and variability of the cost of long-term care. They complement other long-term care financing sources, such as Government subsidies, Government assistance schemes, community support, personal savings and family support.