While Medishield Life and Careshield Life are compulsory health insurance plans that have received much public attention, most Singaporeans have not given much thought to DPS prior to the announcement. You may be surprised to find out that you are covered under DPS and have been doing so since you made your first CPF contribution.
According to CPF Board, 1.9 million CPF members are covered under DPS as of the end of 2019. On 1 April 2021, DPS was enhanced to provide better coverage for CPF members.
Here’s all you need to know about DPS.
What Is Dependants’ Protection Scheme (DPS)?
Implemented since 1989, the DPS is intended to provide protection for CPF members and their family in the event of untimely death, terminal illness or total permanent disability.
DPS is a term-life insurance scheme for CPF members. While it is not a compulsory scheme, it is an opt-out scheme, meaning that unless you deliberately opted out of the scheme, you would be automatically enrolled when you make your first CPF contribution and are between the age of 21 and 65.
Today, solely administered by Great Eastern Life and covers insured members for a maximum sum assured of $70,000, up to 65 years old. For members aged 60 to 65, DPS provides coverage of up to a maximum sum assured of $55,000.
Prior to 1 April 2021, NTUC Income was the other designated insurer for DPS. After 1 April 2021, Great Eastern Life became the sole insurer and took over all the obligations for DPS covers issued NTUC Income. If you are a policyholder issued under NTUC Income, your DPS cover is still valid (assuming that there has been no lapses) and any medical conditions developed on or after the commencement of the DPS covers under NTUC Income will be continue to be covered by Great Eastern Life.
What Do You Need To Do To Be Covered Under DPS?
While you are automatically enrolled when you make your first CPF contribution, you are required to make a health declaration to the insurer to be covered under DPS. If you suffer from serious pre-existing illness, it could affect your eligibility to be covered under DPS.
You can also apply to join DPS as young as the age of 16 by writing in to the insurer.
While your DPS cover is automatically renewed every year, it is possible for the cover to lapse if you have insufficient CPF funds to pay for the premium and did not pay in cash. You can check the status of your Dependants’ Protection Scheme coverage and who your insurer is via your yearly CPF Statement of Account by logging in to my cpf Online Services.
If your DPS cover has lapsed, you can apply to rejoin the scheme, subject to health declaration.
How Much Are The Premiums?
DPS is designed to be an affordable term life insurance that pools the risks across all CPF members.
|Age (Last Birthday)||Yearly Premium for $70,000 sum assured
(From 1 April 2021^)
|34 years and below||$18|
|35 – 39 years||$30|
|40 – 44 years||$50|
|45 – 49 years||$93|
|50 – 54 years||$188|
|55 – 59 years||$298|
|60 – 64 years||$298 (for sum assured of $55,000)|
^New yearly premium would be deducted on member’s DPS policy anniversary
Additionally, because the premiums are paid from your CPF Ordinary Account and/or Special Account, there is no cash outlay unless you have insufficient CPF funds.
What Are The Claim Benefits Of DPS?
DPS is a term life insurance that pays out the sum assured upon the insured’s passing or when certified by an accredited doctor to suffer from terminal illness or total and permanent disability.
However, there are certain claims exclusions for DPS. Claims benefits are not payable if the the following occur within the first policy year: member committed self-inflicted injury or suicide, committed a criminal offence punishable by death or if claim arose out of member’s own intentional criminal act.
Additionally, the benefits are also not payable if the member was not in good health before the commencement of DPS cover, provided false or misleading information or if the claim arose from wars or any warlike operations or participation in any riot.
DPS claim benefits do not form part of CPF proceeds and will not be distributed based on your CPF Nomination. Instead, you will have to make a separate DPS nomination through your insurer if you wish to specify who receives the claim benefits.
This article was first written on 20 July 2022 and has been updated with the latest information.