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Charity Urges Higher CareShield Life Payouts and Easier Access to Support Singaporeans with Critical Illnesses

A charity is pushing for increased monthly payouts from Singapore’s national disability insurance scheme, CareShield Life, and a relaxation of its eligibility criteria to better support individuals with severe disabilities caused by critical illnesses such as cancer and stroke. These proposals are outlined in a new position paper by Leap201, released as part of the scheme’s first review, five years after its 2020 launch. The review’s findings are expected in late 2025.

Leap201 presented its three key recommendations during a roundtable discussion co-hosted with KPMG on June 16. The charity’s position paper, yet to be fully published, calls for raising the current $662 monthly payouts, which increase annually for scheme participants. It also proposes lowering the eligibility threshold for claims from requiring an inability to perform three of six daily living activities—such as showering, eating, dressing, or using the toilet—to just two. This change, Leap201 argues, would enable earlier intervention to prevent further health deterioration.

Additionally, the charity suggests automatically enrolling eligible claimants into other relevant schemes or community programmes to reduce the burden on critical illness survivors seeking support. The focus on critical illnesses stems from rising cases among working adults, coupled with widespread underinsurance. A 2022 Life Insurance Association study revealed that 74% of economically active Singaporeans aged 20 to 69 are underinsured for critical illnesses, with the figure rising to 91% among platform workers. The 2022 Singapore Cancer Registry Annual Report also noted a sharp rise in cancer cases among those aged 30 to 39.

As of 2024, CareShield Life has 1,821 active claimants, a 66% increase from 2023, with $26.7 million disbursed to individuals classified as “severely disabled.” The scheme provides basic financial support for those needing prolonged personal and medical care due to severe disability.

Leap201’s recommendations are part of its broader Care4Working Families (C4W) initiative, which aims to address insurance gaps and support lower-income critical illness survivors, particularly in returning to work. Associate Professor Walter Theseira from the Singapore University of Social Sciences, who attended the discussion, noted that higher payouts would reduce out-of-pocket costs but could raise premiums for all participants. He highlighted a public perception challenge: many view CareShield Life’s premiums as high relative to its payouts, especially compared to private insurance offering larger lump sums. “People don’t always grasp that long-term care can extend over many years,” he said.

The June 16 roundtable, held under Chatham House rules to ensure anonymity, also raised questions about the evidence behind easing eligibility criteria to delay disability progression. One participant called for more research into factors contributing to functional decline. Another suggested appointing a cause champion, similar to Yellow Ribbon Singapore for ex-offenders or SGEnable for people with disabilities, to advocate for workplace reintegration and other issues faced by critical illness survivors.

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