How National Schemes Fit with Commercial Insurance: MediShield Life, CareShield Life, DPS and Integrated Shield Plans

Definition: national schemes are the base layer, and commercial insurance fills the gaps

Singapore's national protection schemes are government-designed basic protections linked to CPF accounts, in particular MediSave. They are MediShield Life (large hospital bills and some costly outpatient treatments), CareShield Life (long-term care cash payments for severe disability) and the Dependants' Protection Scheme (DPS, basic term life cover). The role of commercial insurance is to fill gaps on top of these: ward class, deductibles, income shortfalls and risks the schemes do not cover. The Basic Financial Planning Guide published by MAS and the industry also puts "know which national schemes already cover you" ahead of buying insurance.

In practice the order is usually this. First confirm which national schemes apply to you. Then see how much is still missing beyond them, for example the ward class you want and the deductible you can afford. Only then decide whether an Integrated Shield Plan (IP) and its rider are needed, and finally assess the life, critical illness and income gaps. Foreigners start from a different place; see the last section.

Overview table: three national schemes and the IP

MediShield Life: what the 2024 review changed

On 2024-10-15 MOH announced that the Government had accepted the recommendations of the MediShield Life Council. The main changes are below; the figures are subject to the latest announcements by MOH and CPF Board.

MOH said this Government support is enough to offset the premium increases for more than nine in ten Singaporeans. The table does not list premiums by age band; use the premium tables published by MOH and CPF Board.

Integrated Shield Plans (IP): layered on top of MediShield Life

An IP is made up of MediShield Life plus additional cover from a private insurer. The MOH comparison page lists 7 IP insurers: AIA, Great Eastern, HSBC Life, Income, Prudential, Raffles Health Insurance and Singlife (alphabetical order, with no recommendation implied by the sequence). A "standard IP" corresponds to ward class B1 in a public hospital; other plans cover private hospitals or ward class A. MOH notes that, apart from the standard IP, the cover of other IPs may differ between insurers (MOH, updated 2026-10-19).

IP riders are subject to a new rule. MOH announced on 2025-11-26 that, from 2026-04-01, newly sold riders may no longer cover the minimum IP deductible set by MOH, which ranges from S$1,500 to S$3,500 per policy year by ward class (class C S$1,500, B2 S$2,000, B1 S$2,500, A and private S$3,500). The minimum co-payment of 5% is unchanged, but the minimum annual co-payment cap rises from S$3,000 to S$6,000 (excluding the minimum deductible). Non-compliant riders are withdrawn from sale from that date. Those who buy an old-style rider from 2025-11-27 must be told that they will need to switch to a compliant rider at the first renewal after 2028-04-01 at the latest; how existing policies bought earlier are treated is for the insurer to decide.

The Basic Financial Planning Guide points out that about half of residents holding an IP choose ward class B2 or C when hospitalised, in which case MediShield Life cover may already be enough and an additional IP may not be necessary (MAS, 2023-10-07). The guide also warns that the long-term cost of an IP rises significantly with age, and that people who hold an IP are not eligible for Additional Premium Support (APS), and anyone receiving APS who switches to an IP will stop receiving it (MAS, 2023-10-07).

MediSave: how much premium it can pay each year

MediSave can pay the full annual premium of MediShield Life, and family members' MediSave can be used too. The private-insurance portion of an IP is subject to an Additional Withdrawal Limit (AWL). By age next birthday, the limit is S$300 a year for 40 and below, S$600 a year for 41 to 70 and S$900 a year for 71 and above; any private-insurance premium above the limit must be paid in cash (CPF Board, updated 2025-03-10). MOH further notes that MediSave can still be used for deductibles and co-payments, subject to the prevailing withdrawal limits.

Build this limit into your budget. The private portion of an IP premium usually rises with age, while the MediSave allowance is fixed in age bands, and the difference is paid in cash.

CareShield Life and the DPS

CareShield Life pays a monthly amount to people with severe disability. Payments start once an assessor accredited by MOH determines that the person is unable to perform independently at least 3 of the 6 activities of daily living (washing, dressing, feeding, toileting, walking or moving around, and transferring), and continue for as long as the condition lasts. Premiums can be paid with MediSave (CPF Board, updated 2026-09-21). MOH announced on 2025-08-27 that the monthly payout in 2026 will be S$689 (previously S$676) and that the annual increase will rise from 2% to 4%, until age 67 or a successful claim; the Government is also providing more than S$570 million in premium support over the next five years. People who want a higher payout or cover for milder disability can consider the CareShield Life supplements offered by insurers (MAS, 2023-10-07).

The DPS applies automatically to CPF members aged 21 to 65 who have made active CPF contributions from employment and are in good health, and members can opt out by form (CPF Board, 2026-02-26). Great Eastern Life is currently the sole insurer; CPF Board has extended its contract to 2028-09-30, the scheme covers more than 2 million citizens and permanent residents, and existing members' premiums are unchanged (CPF Board, 2025-05-26). Later arrangements are subject to the latest CPF Board announcements. DPS annual premiums are set in age bands by age at payment (CPF Board, updated 2026-07-23), and the amounts are subject to CPF Board's latest publication:

The DPS is only basic term life cover. The sum assured is fixed and does not adjust to income, a mortgage or family obligations. How large the protection gap is needs to be worked out separately against your own circumstances; for reference values and a checking method see the pre-purchase checklist, and for the trade-offs between product types see the like-for-like comparison.

How the position differs for foreigners and permanent residents

MediShield Life, CareShield Life and the DPS are for citizens and permanent residents (CPF Board, updated 2026-09). Foreigners holding an Employment Pass (EP), S Pass, Work Permit or similar are usually outside them, and their medical risk has to be arranged separately:

• EP holders: MOM states that there is no legal requirement for an employer to provide medical insurance to EP holders; it may be provided through the employment contract, or the holder can buy it personally.
• S Pass holders: the employer must buy and maintain medical insurance, with cover of at least S$60,000 per employee per year for inpatient care and day surgery. The cost may not be passed on to the employee, and MOM allows only reasonable co-payment arrangements that meet its conditions (MOM, updated 2026-09-18).
• Work Permit holders: the employer must likewise buy and maintain medical insurance, with cover of at least S$60,000 per worker per year, and the cost may not be passed on to the worker. The conditions for co-payment arrangements and special rules such as those for domestic workers are as set out on the MOM Work Permit page (MOM, updated 2026-09-18). MOM's EP FAQ page (updated 2021-09-30) also states that this mandatory requirement applies only to Work Permit and S Pass holders.
• After becoming a permanent resident: the national schemes that apply and the transitional arrangements are subject to the latest rules of CPF Board and MOH.

Eligibility of foreigners for commercial life, critical illness and medical insurance is decided by each insurer according to pass type, country of residence and the individual case; see foreigners and non-residents applying for insurance in Singapore. For how cover across product types fits together and the trade-offs, see the like-for-like comparison. To have this interpreted for your own situation, you can register your needs through this site's contact options.