Following CPF’s announcement on 2 October 2020 regarding the revisions to the Dependants’ Protection Scheme (DPS), 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.
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.
According to CPF Board, 1.9 million CPF members are covered under DPS as of the end of 2019. This means a significant number of Singaporeans are affected by the DPS changes.
Here’s all you need to know about DPS and the changes that would be implemented on 1 April 2021.
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 60 (65 after 1 April 2021).
Today, DPS is administered by Great Eastern Life and NTUC Income and covers insured members for a maximum sum assured of $46,000 up to 60 years old. This will change to $70,000 maximum sum assured, up to 65 years old from 1 April 2021.
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.
The insurers for DPS are NTUC Income and Great Eastern Life. This will change to a single insurer: Great Eastern Life from 1 April 2021.
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.
From 1 April 2021, premiums will be reduced, even as the sum assured is raised to $70,000, making DPS one of the more affordable insurance available to Singaporeans.
|Age (Last Birthday)||Yearly Premium for $46,000 sum assured
(before 1 April 2021)
|Yearly Premium for $70,000 sum assured
(From 1 April 2021^)
|34 years and below||$36||$18|
|35 – 39 years||$48||$30|
|40 – 44 years||$84||$50|
|45 – 49 years||$144||$93|
|50 – 54 years||$228||$188|
|55 – 59 years||$260||$298|
|60 – 64 years||Not applicable||$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. The current sum assured is $46,000 and will be increased to $70,000 for those below the age of 60 and $50,000 for those who are aged 60 and above, after 1 April 2020
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.
Changes To DPS From 1 April 2021
In summary, the changes to DPS from 1 April 2021 are:
- A change of insurers from NTUC Income and Great Eastern Life to Great Eastern Life as the sole DPS insurer
- An increase in the sum assured from $46,000 to $70,000 for those below the age of 60 and $50,000 for those aged 60 and above
- An extension of coverage to cover those who are aged 60 to 65, who are not currently covered.
For those who are aged 60 to 65 or those whose 60th birthday falls before 1 April 2021, there is a gap in coverage during the interim period between now and 1 April 2021. Instead, you can apply to rejoin DPS after 1 April 2021 with Great Eastern Life directly.
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