Women Voice Concerns Over Higher CareShield Life Premiums

Women in Singapore are expressing frustration over the higher premiums they pay for CareShield Life, the country’s mandatory long-term care insurance scheme. This program is designed to provide financial protection for those who become severely disabled and need assistance with daily living. At age 30, women pay approximately S$264 in annual premiums, while men pay around S$223. Many women feel this disparity is unfair and indicative of broader gender inequalities in the workforce and healthcare.

Larissa Tiang, a 45-year-old secondary school teacher, voiced her concerns about the pricing structure. “Just because women have a longer life expectancy doesn’t mean we should pay higher premiums,” she stated. Tiang highlighted that women often earn less than men due to systemic issues like the recognition of National Service as a form of work experience. This, she argues, exacerbates the financial burden placed on women, who already navigate salary disparities throughout their careers.

Vanessa Chew, a 50-year-old wedding planner, echoed Tiang’s sentiments, questioning why the government does not address these inequalities in healthcare costs. “If we can level the playing field regarding starting salaries for men because of National Service, why can’t the government try to even out the healthcare costs for women in our old age?” Chew stated. Many women share a belief that the government should take action to ensure equitable treatment in all aspects of life, including healthcare.

The debate over CareShield Life premiums reflects a broader societal issue. Women often engage in unpaid caregiving roles, which can hinder their career progression and earning potential. As Chew noted, “The national service we perform here is the childbearing and caregiving work that we do.” This unpaid labor, paired with the higher premiums women pay, contributes to what some consider a “pink tax” — an unfair financial penalty for being female.

Understanding Premium Pricing

The factors influencing insurance premiums are complex. According to the Life Insurance Association Singapore (LIA), the pricing reflects various risk profiles and the costs associated with distribution and servicing. Actuaries use large pools of anonymised data to determine appropriate premiums, aiming to keep costs fair for all policyholders. This approach includes evaluating individual health risks, lifestyle choices, and demographic factors.

Yvonne Lim, a financial consultant from Prudential Assurance Company Singapore, explained that women typically pay more for health and disability insurance due to longer life expectancies and a higher likelihood of developing certain health issues. Conversely, men tend to pay more for motor insurance and term life insurance, reflecting their riskier driving behaviors and shorter life spans. “This is an example of risk pooling, where premiums from all policyholders fund a shared pool of claims,” Lim stated.

Lim also emphasized that while women may face higher costs in certain areas, this does not apply universally across all insurance types. Understanding these nuances is crucial as individuals navigate their insurance needs based on their life stages and financial goals.

Navigating Insurance Needs

The insurance landscape requires consumers to evaluate their priorities and health needs at various life stages. For women in their 20s, establishing a solid foundation with basic health insurance and income protection is essential. As responsibilities grow in their 30s, considerations such as maternity insurance and income protection for potential career breaks become critical.

In their 40s, individuals should focus on retirement planning, ensuring that savings and investments are on track. By the time they reach their 50s and beyond, the focus often shifts to health insurance that supports independent living as chronic diseases become more prevalent.

As women continue to navigate their insurance options, it is essential to recognize that costs can vary significantly depending on individual circumstances. “Nobody can know for sure if they will be making a claim,” Lim remarked. “When you pay an insurance premium, you are preparing for unexpected expenses.”

The conversation surrounding CareShield Life premiums reflects deeper societal issues regarding gender equality and health equity. As the public discourse continues, many women hope for changes that address these longstanding inequalities, underscoring the need for a more equitable approach to insurance pricing and healthcare policy.