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Dependants Protection Scheme: Here’s One Insurance Policy You Didn’t Know You Already Have

Here’s a term life insurance policy that many Singaporeans may not even realise they have.

Most people will agree that insurance is important. Hence, it’s somewhat ironic that many of us may not even know all the insurance policies that we currently have. From policies bought since young by our parents, to group insurance plans that our employers have signed us up for, to MediShield Life – a compulsory national basic health insurance plan that all Singaporeans and PRs have.

It’s always beneficial to be aware of the insurance policies that we have, even if we were not the ones who have bought them.

Read Also: 6 Insurance Policies You May Already Have Without Knowing

The Dependants’ Protection Scheme

One insurance policy that many Singaporeans and PRs may overlook is the Dependants’ Protection Scheme (DPS). The DPS is an opt-out term life insurance policy that provides all eligible CPF members with a sum assured of $46,000.

According to the CPF website, you will be automatically included as long as you meet the following criteria.

  • Singapore Citizen or Permanent Resident;
  • Between 21 and 60 years old; and
  • Have made your first CPF working contribution.

How Much Premiums Do You Pay For Coverage?

Annual premium for the DPS is dependent on your age. Naturally the older you are, the higher your premium will be.

Source: CPF

Aside from its affordability, the best part about the DPS is that you can use your CPF Ordinary Account (OA), or CPF Special Account (SA) to pay for your annual premiums.

Apart from the Home Protection Scheme (HPS), the DPS is the only other life insurance plan in Singapore that allows you to use your CPF monies to pay your insurance premiums. Hence, it makes sense NOT to opt out from it, since you are essentially getting useful life insurance without having to fork out any cash on hand.

On It’s Own, The Dependants’ Protection Scheme Is Unlikely To Be Sufficient

One misconception to avoid is thinking that since the government already introduced some form of term life insurance, CPF members no longer need to worry about their own life insurance coverage. This is untrue.

At a sum assured of only $46,000, there is a strong likelihood that most people will still need additional coverage. Hence, it’s advisable that CPF members look at the Dependents’ Protection Scheme (DPS) as a form of supplementary life insurance coverage.

How To Check If You Are Currently Insured

While DPS coverage is automatically renewed each year through deduction of premiums from your CPF account, it’s worth pointing out that in some instances, CPF members may find their coverage lapsing unknowingly.

This tends to happen if you have worked in a job that pays you CPF contributions in your younger days for a short period of time. For example, if you took on a one-month part-time job while waiting to enlist in National Service, and was paid $600 for your efforts for the month, you would have received a contribution of about $136 into your CPF account. When you turn 21, you will automatically be covered under the DPS, with an annual premium of $36 deducted from your CPF.

However, your CPF funds will only be sufficient to pay the annual premium of the DPS for three years. If you are not already working by 24, which apply to many Singaporean male who served national service and may still be in school, then your DPS coverage will lapse unless you continue paying for the coverage using cash. Do note that most Singaporeans, at this point in time, may not even know they have the coverage in the first place at that age.

To check if you are covered under the DPS, you can check log in to the CPF website using your SingPass.

Read Also: 5 Questions To Ask Yourself Before You Upgrade Your MediShield Life To An Integrated Shield Plan

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