For those born in 1980 or later, starting premiums vary by joining age and sex. CareShield Life premiums are designed to increase regularly to support the regular increase in payouts. The schedule of premium increases is not fixed, and will be regularly reviewed by an independent council to ensure the sustainability of the scheme.

 

Here’s an example: 30-year-olds who join the CareShield Life scheme upon its launch, would see their premiums increase from $17/month to $36/month when they reach 67 years old, assuming a non-guaranteed 2% premium increase per annum (excluding GST). Their payouts would have increased from $600/month at scheme launch to around $1,200/month. Actual future premiums and payouts will vary depending on yearly adjustments.

 

However, to provide greater assurance to Singaporeans, for the first five years of scheme implementation, payouts and premiums* will both increase by 2% per year. An independent council will be set up to regularly review these trends thereafter and advise the Government on premium and payout adjustments in accordance with an actuarially sound adjustment framework.

 

*2% increase of premiums per year excludes GST.