Singapore Insurance: Updates on Dependants’ Protection Scheme
What is Dependants’ Protection Scheme DPS?
According to CPF Board, Dependants’ Protection Scheme (DPS) is a term insurance that provides insured members and their families with some money to get through the first few years should the insured members pass away or when they suffer from Terminal Illness or Total and Permanent Disability. Thus, DPS is a basic term insurance plan which covers death, Terminal illness and Total and Permanent Disability, currently up to sum assured of $46,000 and up to age 60. Updates, from 1st April 2021, Dependants’ Protection Scheme (DPS) will cover maximum sum assured of $70,000 up to age 65, and Great Eastern Life will take over as the sole administration of Dependants’ Protection Scheme DPS. Currently both Great Eastern Life and NTUC Income are administering the Scheme.
What is Used to Pay for Dependants’ Protection Scheme DPS?
Your CPF Ordinary Account (OA) and/or Special Account (SA) savings can be use to pay the DPS premium. Premium will be deducted from your CPF Ordinary Account (OA), If you do not have sufficient savings in your OA, it will be deducted from your Special Account (SA).
Who Will be Covered Under Dependants’ Protection Scheme (DPS)?
According to CPF Board, Dependants’ Protection Scheme (DPS) is open for all Singaporeans and Permanent Residents between age 16 and 60 can be covered under DPS. And from 1 April 2021, DPS eligibility will up to 65 years old. Dependants’ Protection Scheme (DPS) coverage will be automatically extended to Singapore Citizens or Permanent Residents upon their first CPF working contribution between age 21 and 60 years old (age 65 from 1 April 2021). Members aged 16 and above who were not extended a DPS cover automatically but wish to be insured can apply to join DPS directly with the current DPS insurers, Great Eastern Life or NTUC Income. From 1 April 2021, members can apply for DPS directly with Great Eastern Life instead.
Is Dependants’ Protection Scheme (DPS) Compulsory?
Dependants’ Protection Scheme (DPS) is not compulsory. Insured members who wish to terminate their DPS cover can contact their existing insurer, Great Eastern Life or NTUC Income, by completing the opt out form. From 1 April 2021, insured members who wish to terminate their DPS cover can contact their new DPS insurer, Great Eastern Life.
One Last Thing
Having suitable and sufficient life and income protection insurance are important as it create and provide you and/or family members, with financial support which was not there in the first place. Continue your insurance and financial planning knowledge by reading my other articles, for life insurance comparison on Term Life and Whole Life Insurance Comparison, and Income & Disability Protection Insurance Planning. If you are ready to know more about retirement planning knowledge you may visit my other articles on; What is CPF Life & 5 facts of CPF Life, Retirement Planning and Infographics on What is Retirement Planning and Examples. Hope all these articles helps you have better knowledge on you insurance and financial planning. Do contact your friendly financial consultant if you require further help, or contact me as my objective is to make insurance easy to understand and financial planning a happy process, in Singapore.
Sources:
https://www.cpf.gov.sg/Members/Schemes/schemes/other-matters/dependants-protection-scheme
Note: Opinions expressed are solely in Mr. Chan Kong Meng’s personal capacity and neither express the views or opinions of Prudential nor represent any professional advice in Mr. Chan Kong Meng’s capacity as a PACS representative.