CareShield Life, a long-term care insurance works by pooling together premiums paid by insureds in their younger years while most are still working. The premiums collected will be placed into the CareShield Life and ElderShield Insurance Fund (CEIF) and invested, so that there are sufficient funds for payout in old age, when insureds are no longer paying premiums and are more likely to suffer from severe disability.
The CEIF will be administered by the Central Provident Fund Board and audited annually by an independent external auditor to ensure that all the monies are accounted for.
Similar to MediShield Life, the Central Provident Fund Board’s annual report will include the financial information of the CareShield Life and ElderShield Insurance Fund. The annual reports will be made available on the Board’s website. The Government will also publish relevant information on the premiums collected and payouts made for the CEIF on an annual basis.
The CareShield Life Council will independently oversee the CareShield Life scheme and provide advice/recommendations to the Minister for Health on matters such as the investment of the CEIF, and sustainability and affordability of CareShield Life.