Coverage shortfalls leave Singaporeans vulnerable to care costs

Singlife warns of financial gaps as an ageing population drives urgent need for awareness.

Singapore’s fast-ageing population is confronting a financial challenge that many remain ill-equipped to face: the high and rising costs of long-term care (LTC).

Helen Shen, Group Head of Products at Singlife, said the company’s white paper on LTC highlights the stark reality. “Our research has shown that it costs almost $3,000 per month for folks that will be struggling with long term care, this number is escalating and more than 4% per year. And if you really look at it on a holistic basis, it's going to cost the individual up to $1.11 million,” Shen said.

Despite these figures, most Singaporeans are underestimating their needs. “More than 90% of them do not have coverage that covers them to that extent, and more than 55% of them actually think the actual number is going to be significantly lower,” Shen noted. “There's a lot more to go in terms of financial preparedness for Singaporeans around the prolonged cost of long term care.”

This gap poses significant risks as Singapore’s demographic profile shifts. By 2030, one in four residents will be aged 65 or older, sharply increasing demand for care services and funding solutions.

Shen stressed that the private sector has a duty to complement public policy efforts. Singlife, one of three providers of CareShield Life supplements, is taking a broader approach. “We really see our duty beyond just the insurance product. In the long term care white paper, we've tabled what I call the AAAB. It starts from awareness all the way to acknowledging, to awakening, and ultimately bringing the whole of society together,” she explained.

Beyond insurance coverage, Singlife has launched the Care Collab platform to support customers in navigating the complex LTC journey. The initiative brings together partners such as nursing care agencies, home care providers, nonprofits, and even legal firms that can assist with lasting powers of attorney or wills.

“When a policy holder or customer encounters long term care needs, that journey can be very stressful. So when we curate these under Singlife Care Collab, these are partners that are going to be able to give our customers a much better journey,” Shen said.