[SINGAPORE] Only one in three Singaporeans have taken out additional insurance to cover the cost of long-term care, and more than half of them underestimate actual expenses, revealed a white paper by financial services provider Singlife.
“This is alarming, especially when the numbers have shown that more than half of those over 65 will likely need some form of long-term care in their lifetime,” said Pearlyn Phau, group chief executive of Singlife. She was speaking at the white paper launch event on Friday (Jul 25) morning.
Singlife is one of three private long-term care insurance providers in the Republic. Long-term care refers to services typically required by individuals who need further care after being discharged from an acute hospital, as well as the elderly who may need help with daily needs.
As the life expectancy of Singaporeans rises, Phau noted that a longer life span can bring new and complex challenges – not just financially, but emotionally for individuals, families and all of society.
This inspired Singlife to delve deeper into the realities of long-term care and publish a white paper titled From Awareness to Action: Securing Long-Term Care for a Super-Aged Society, which presents findings drawn from its long-term care insurance claims data from 2010 to 2024.
The white paper incorporates insights from two in-house research studies which surveyed 1,005 Singaporeans and permanent residents (PRs) aged 18 to 65 on perceptions for long-term care, as well as 1,075 Singaporeans and PRs – including 249 caregivers – to better understand experiences and challenges in dementia caregiving.
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“This white paper is a call to action for individuals, families and institutions to plan proactively, because the long-term care challenge is already at our doorstep,” added Phau.
Significant gaps
Singlife’s research revealed a significant gap in both awareness and financial preparedness among Singaporeans regarding long-term care.
While long-term care costs close to S$3,000 per month on average, Singlife found that more than half of those surveyed underestimate the amount.
Since a similar study in 2018, costs have increased by S$628, reflecting an annual inflation rate of around 4 per cent. Given the prolonged nature of care and compounding inflation, these costs are likely to escalate even further.
However, Singapore’s national insurance schemes – namely ElderShield and CareShield Life – currently offer coverage of only up to S$662 per month. This leaves a significant shortfall that could be bridged by private long-term care supplementary insurance plans.
Yet, two-thirds of Singaporeans aged 30 and above have not taken up such coverage and may have to rely on personal savings or family support, potentially placing additional strain on their retirement funds.
This lack of preparedness is especially concerning given the typical duration of care. Singlife’s claims data from 2010 to 2024 showed that individuals require long-term care for an average of 10 years. In some cases, the need is even longer, with Singlife’s longest active claimant receiving monthly payouts for more than 15 years.
Long-term care is not limited to seniors either, given the youngest claimant was just 32 years old at the time of their claim.
Being prepared
In light of these findings, the white paper puts forward a series of recommendations including a renewed focus on early detection, intervention and prevention of conditions such as strokes, which remain a leading cause of long-term care insurance claims.
At the launch event, Singlife also hosted a panel discussion on preparing for the rising demand for long-term care individually and collectively.
“You have to be prepared financially and not think government grants will be enough, as healthcare costs are coming up quickly,” said panellist Jason Foo, chief executive at Dementia Singapore.
This is where insurance plays a key role to protect oneself financially, he added.
The sum assured for Singlife’s long-term care products are as low as S$200 and its premiums can be drawn from one’s Central Provident Fund, noted fellow panellist Helen Shen, group head of products at Singlife.
She also highlighted that while many feel they are too young to sign up for such coverage, it is more financially sustainable to get insured as early as possible.
“You are not just protecting yourself, you are also protecting your loved ones who will have to look after you,” added Shen.
