CareShield Life and ElderShield: Using Payouts to Pay for Care at Home

When a parent or spouse can no longer wash, dress or move around without help, the question of who will provide that care quickly turns into a question of how to pay for it. For many Singapore families, CareShield Life is the first place to look. This guide explains what the scheme pays, who is covered, how severe disability is assessed, how to make a claim, and how the monthly cash can go towards a caregiver or a live-in helper.

The scheme is often misunderstood. It does not reimburse bills the way a hospital plan does, and a diagnosis such as dementia or a stroke does not qualify a person by itself. Payouts depend on a functional assessment of what the person can and cannot do day to day.

We link to the official CPF, Ministry of Health (MOH) and Agency for Integrated Care (AIC) pages throughout. Figures change, so confirm the details there before you decide.

What CareShield Life is and what it pays

CareShield is a national long-term care insurance scheme administered by the CPF Board. According to the CPF Board’s CareShield page, it pays a monthly cash payout for life to a policyholder who becomes severely disabled, for as long as the severe disability lasts.

Three features matter for families:

• It pays cash, not claims. You do not submit receipts. The money arrives in a nominated bank account each month.
• It is lifelong. Payouts continue for as long as the person cannot perform 3 or more of the 6 activities of daily living.
• The amount depends on when the claim is made. Payouts rise each year until age 67 or until a successful claim, whichever comes first. The policyholder then stays insured at that payout level.

Payouts started at $600 a month in 2020. Following the 2025 review, the Government accepted the recommendations of the scheme’s review council in full, including doubling the annual growth rate of payouts from 2% to 4% while keeping the claims criteria the same. MOH’s figures put a 2026 claim at $689 a month and a 2030 claim at $806 a month, compared with $731 under the old growth rate. MOH said the changes would be implemented progressively from January 2026.

The AIC states plainly that the monthly payout can be used for care needs, such as hiring a helper, paying for care services, or daily expenses.

Who is covered, and where ElderShield fits

Coverage depends on year of birth. The CPF Board sets it out as follows:

• Born in 1980 or later: Singapore Citizens and Permanent Residents are covered automatically from age 30, or from 1 October 2020 if later, regardless of pre-existing conditions.
• Born between 1970 and 1979: those insured under ElderShield 400 who were not severely disabled were enrolled automatically from 1 December 2021.
• Born in 1979 or earlier: joining is optional. Means-tested premium subsidies of up to 30% are available, and MOH has said no one will lose coverage because they cannot afford premiums.

Premiums can be paid from MediSave, including a family member’s.

If your parent still has ElderShield

ElderShield is the predecessor scheme. It is no longer open to new applications, but many older Singaporeans remain covered. According to the CPF Board’s ElderShield page, ElderShield 300 pays $300 a month for up to 60 months, and ElderShield 400 pays $400 a month for up to 72 months. Unlike the newer scheme, those payouts are time-limited. If a parent upgrades successfully, the ElderShield policy is replaced and the premiums already paid count towards the new one.

How severe disability is assessed: the six ADLs

Eligibility rests on one test. An MOH-accredited assessor must find that the person is unable to carry out at least 3 of these 6 activities of daily living (ADLs):

1. Washing: bathing or showering.
2. Dressing: putting on and taking off clothes.
3. Feeding: eating food that has already been prepared.
4. Toileting: using the toilet and managing personal hygiene.
5. Walking or moving around: indoors, from room to room on level surfaces.
6. Transferring: moving from a bed to a chair or wheelchair, and back.

Two points trip families up. First, a diagnosis alone does not qualify anyone. The AIC says dementia and other cognitive conditions do not automatically meet the criteria, because they affect daily activities to different degrees, but the assessor will consider the impact of cognitive challenges during the assessment. If you are noticing changes in memory or behaviour, our guide to early signs of dementia explains what to raise with a doctor.

Second, the assessment is of current function, so someone whose needs grow later can be assessed then. AIC notes that periodic reviews may be needed to confirm a person still meets the criteria.

The assessment is not a medical consultation, and the scheme does not replace one. Any sudden decline, a fall, confusion that comes on quickly or difficulty breathing needs a doctor first, and a medical emergency needs a 995 call.

How to make a CareShield Life claim, step by step

The process is the same whether your parent or spouse is claiming under the newer scheme, ElderShield or MediSave Care. Based on the CPF Board and AIC guidance, a claim runs like this:

1. Confirm coverage. Check that the person is a policyholder through cpf.gov.sg with Singpass.
2. Book an assessment with an MOH-accredited assessor. The list is on the AIC website. Your regular doctor or therapist may not be on it, so check before you book.
3. Know the fees. The fee is $100 at the assessor’s clinic or $250 for a home visit. The first assessment fee for this scheme is waived whatever the outcome. For later assessments you pay the assessor first, and the fee is reimbursed if the person is assessed as severely disabled.
4. Submit the application. Apply through AIC’s e-Services for Financing Schemes (eFASS) using Singpass. AIC recommends this route because approval is faster. Nursing home residents can have the home submit for them.
5. Wait for the outcome. AIC says processing can take up to four weeks, and the result is sent by mail. Approved payouts go to the nominated bank account the following month.

Claiming for a parent who lacks mental capacity

According to AIC, an application for a policyholder who lacks mental capacity must be made by their LPA donee or court-appointed deputy. If there is neither, an immediate family member (a parent, spouse or child) may apply, together with a doctor’s certification of the lack of capacity, but a court order appointing a deputy must then be obtained within 12 months or the payouts will be suspended. This is one strong reason to make an LPA early. If the payouts are to go to a deputy’s or donee’s account, you will also need a copy of that bank statement.

AIC warns that its staff will never ask you to transfer money or share bank log-in details by phone. If in doubt, call the ScamShield Helpline at 1799.

Using the payout to pay for a caregiver or helper

Because the money is unrestricted cash, families decide how to use it: day care or home care services, nursing home fees, or a live-in helper who provides daily care at home.

Someone who needs help with three or more ADLs often needs care round the clock, including at night, and a live-in helper is one way families make that sustainable. Our elderly caregiver placements are for exactly this situation, and our guide to the difference between an elderly caregiver and a general domestic helper explains what to look for.

When you budget, set the monthly payout against the real recurring costs of employing a helper: salary, levy, insurance and her food and upkeep. Our full breakdown of what a helper costs lists each item.

Other schemes that stack with long-term care insurance

The concessionary helper levy

MOM’s normal levy for a first helper is $300 a month. The levy concession reduces this to $60 a month where an eligible person lives in the household. That includes a Singapore Citizen aged 67 or above, and a person certified by a Singapore-registered doctor as needing help with at least 1 ADL, which requires a recommendation letter from AIC. The household member must be listed in FDW eService. Our maid levy guide covers the conditions in full.

The Home Caregiving Grant

The Home Caregiving Grant is a means-tested cash grant from AIC for people who permanently need some help with at least three ADLs and live at home rather than in a nursing home. It pays up to $600 a month, depending on household income per person. Helpfully, AIC accepts a severe disability assessment done for the insurance scheme as enough for the grant, so you avoid paying for a second assessment. Our guide to the Home Caregiving Grant explains who qualifies.

MediSave Care

Under MediSave Care, Singapore Citizens and PRs aged 30 and above with severe disability can withdraw up to $200 a month in cash from MediSave. The amount is tiered by MediSave balance, with the full $200 needing $20,000 or more and nothing available below $5,000. A spouse’s MediSave can top up the withdrawal, to a combined total of $200. It uses the same accredited assessment and is applied for through eFASS.

Practical tips before you apply

• Keep a simple care diary of which daily tasks your parent needs help with, to make the assessment conversation clearer.
• Apply for several schemes together. One accredited assessment can support the insurance claim, MediSave Care and the Home Caregiving Grant.
• Check the nominated bank account. AIC notes payouts may be suspended if there is a dispute over the account, so agree as a family who manages the money.
• Plan the care before the money arrives. Processing takes weeks. If a parent is coming home from hospital, our guide to post-hospital discharge care at home covers the first days.

Related guides: Home Caregiver Singapore: When an Elderly Parent Needs Help and Maid for Elderly Care Singapore: How Agencies Screen Helpers.

Frequently Asked Questions

Can CareShield payouts be used to pay a domestic helper?

Yes. The payout is monthly cash, and AIC states it can be used for care needs such as hiring a helper, paying for care services or daily expenses.

Does a dementia diagnosis automatically qualify for payouts?

No. Eligibility depends on an MOH-accredited assessor finding that the person cannot perform at least 3 of the 6 activities of daily living, though the assessor does consider how cognitive challenges affect those activities.

How much does the severe disability assessment cost?

Assessments cost $100 at the assessor’s clinic or $250 for a home visit, but the first assessment fee for the scheme is waived regardless of outcome, and later assessment fees are reimbursed if the person is found to be severely disabled.

How long does it take to receive the first payout?

AIC says it may take up to four weeks to process an application submitted through eFASS, and approved payouts are paid into the nominated bank account in the following month.

Can my parent receive the payout and the Home Caregiving Grant at the same time?

The two are separate schemes with separate criteria, and AIC accepts the same severe disability assessment for both, but the Home Caregiving Grant is means-tested and only for people living at home, so confirm eligibility with AIC on 1800 650 6060.

Conclusion

Long-term care insurance will not cover the full cost of caring for a severely disabled parent at home, but a lifelong monthly payout, combined with the levy concession, the Home Caregiving Grant and MediSave Care, can make a live-in caregiver far more affordable. Confirm coverage, book an accredited assessment, apply through eFASS and plan the care arrangement in parallel.

If you are weighing up a live-in helper to care for a parent with long-term care needs, we are happy to talk it through with you. You can get in touch with the Femme5 team to discuss your family’s needs, read more about how we work with employers, or explore what a good placement looks like.

The Femme5 Team
Maid placement specialists, Femme5 Maid Agency
Our consultants work with Singaporean and expatriate families on helper matching, contracts and MOM compliance, and we verify the regulatory guidance in our articles directly against the Ministry of Manpower’s published requirements.