Data on Monthly Payout Claims under CareShield Life and Possible Improvements

22 Mr Liang Eng Hwa asked the Minister for Health (a) what is the range of monthly payout of claims made under CareShield Life since it was first implemented; and (b) whether the premium-to-claim economics can be further improved.

Mr Ong Ye Kung: CareShield Life (CSHL) payouts started at $600 per month in 2020 and increase by 2% annually until 2025. An individual who makes a successful claim in 2024 will receive monthly payouts of $649 and will not need to make further premium payments for as long as he remains in severe disability.

CSHL is administered by the Government on a not-for-profit basis, with premiums sized based on actuarial principles. An important characteristic to take note of is that the scheme is designed on a lifetime basis, where premiums are frontloaded when someone is young and unlikely to become disabled and claims will most likely happen when the person is old, after which payment of premiums will be suspended. As most of the policyholders are relatively young and many have yet to make claims, it is not appropriate to use the premium-to-claim ratio to assess the pricing and economics of the insurance scheme. An independent CSHL Council will regularly review and recommend changes to premiums and payouts, in accordance with an actuarially sound adjustment framework.