A new position paper from charity organization Leap201 is proposing revisions to CareShield Life, Singapore’s national disability insurance scheme.
The group is recommending an increase in monthly payouts and a lowering of the eligibility threshold to support individuals with critical illnesses such as cancer and stroke.
The recommendations were presented on June 16 during a roundtable discussion co-hosted by accounting firm KPMG. The proposal comes as the government begins its first review of CareShield Life, five years after the scheme’s introduction. Results from the review are expected in the second half of 2025.
Currently, CareShield Life provides monthly payouts starting at $662 to individuals deemed severely disabled – defined as those unable to perform at least three out of six basic activities of daily living, including eating, dressing, and using the toilet independently. Leap201’s paper suggests that individuals should qualify for payouts if they are unable to perform two of these six activities.
According to Leap201, easing the criteria could allow earlier treatment and potentially slow down further deterioration. The organization also proposed automatic enrollment into other government schemes or community programs for individuals who meet the revised disability criteria.
As of 2024, the number of active CareShield Life claimants stood at 1,821, marking a 66% rise from 2023. Since its inception, the scheme has disbursed $26.7 million to eligible recipients.
Leap201’s focus on critical illness stems from growing concerns around underinsurance. Data from the Singapore Cancer Registry’s 2022 report showed the highest rate of increase in cancer cases among those aged 30 to 39.
A separate study by the Life Insurance Association in the same year found that 74% of economically active Singaporeans aged 20 to 69 were underinsured for critical illnesses, rising to 91% for platform workers.
Singapore University of Social Sciences associate professor, Walter Theseira, said higher payouts would reduce out-of-pocket costs but could lead to increased premiums. He noted that public understanding of long-term care insurance remains limited, especially when compared with private plans offering lump-sum benefits.
Theseira added that the design of CareShield Life, which guarantees long-term monthly payouts, may not be fully appreciated by consumers unfamiliar with the extended nature of care needs.
The event, held under Chatham House rules, also included discussions on the need for a dedicated advocate for those with critical illnesses, similar to existing models for other vulnerable groups in Singapore.
Should CareShield Life ease access and raise benefits for critical illness survivors? Share your thoughts in the comments.
