Dependants’ Safety Scheme (DPS) – Eligibility, Premiums & Declare

When a Singaporean younger grownup begins incomes a full-time wage, it’s nearly a ceremony of passage to get bombarded with mail from banks and insurance coverage firms. On the identical time, CPF can even ship a letter concerning this time period life insurance coverage scheme known as Dependants’ Safety Scheme (DPS).

However what’s it, actually? How does it work? And possibly most significantly, how will you declare a payout? Let’s discover out.

Observe: DPS will probably be up to date from April 2021. This text displays the brand new and up to date scheme.

What’s the Dependants’ Safety Scheme?

Dependants’ Safety Scheme is a time period life insurance coverage scheme which is mechanically prolonged to all Singaporeans and PRs between ages 21 and 65. It’s not obligatory, however you must choose out should you don’t wish to be lined.

For those who do nothing, you’re lined for the utmost sum of $70,000 up until your sixty fifth birthday. Like most different time period life insurance coverage insurance policies, this profit will probably be paid out to your loved ones do you have to cross away, or to you should you change into completely incapacitated.

Primarily, this scheme permits CPF members (principally all Singaporeans and a few PRs) to take pleasure in some degree of monetary safety at inexpensive premiums. You can too use your CPF Atypical Account or Particular Account financial savings to pay for the premiums, so it’s a “painless” expense.

Clueless about this life insurance coverage factor? You possibly can learn extra about life insurance coverage in our primary information.

Who’s eligible for the Dependants’ Safety Scheme?

​You’re mechanically included underneath Dependants’ Safety Scheme if you’re a Singaporean citizen or PR between 21 and 65 years outdated.

Normally, you’ll get a letter notification inside 5 working days from making your first CPF contribution.

This letter will come from Nice Japanese Life, which would be the sole administrator for DPS from April 2021. (Previous to 2021, DPS was administered by both Nice Japanese or NTUC Earnings.) The welcome package deal will information you on how one can full your DPS software.

As quickly as you find the money for in your CPF for essentially the most primary protection, you’ll be mechanically lined by this insurance coverage coverage, however you’ll be despatched a well being declaration kind so you’ll be able to declare any severe well being points.

However what if I’ve well being issues?

You will want to fill in a well being declaration kind each time you apply for Dependants’ Safety Scheme whether or not it’s the primary time or should you’re getting it reinstated at a later date.

The DPS insurer will think about your eligibility on a case-by-case foundation. DPS protection could also be declined in case you have any severe pre-existing medical circumstances. It additionally then may be assumed that should you lie and say you’re high-quality, however have a pre-existing situation that you just attempt to declare upon later, you gained’t obtain your declare.

How a lot do the DPS premiums price?

The Dependents’ Safety Scheme will probably be revised from April 2021 onwards. Beforehand, the utmost payout (sum assured) was simply $46,000, however from April, it would improve to $70,000.

Premiums for some age teams can even improve from April 2021 onwards. That is what you’ll be able to count on to pay annually:

Your yearly DPS premium will improve as you age. Which means you’ll begin paying $18 a yr as much as age 35, with premiums then rising each 5 years as much as $298 a yr from age 55.

Observe that DPS premiums stay the identical no matter gender and the way lengthy you’ve been on the Scheme.

What if I can’t afford my DPS premiums?

Dependants’ Safety Scheme premiums may be absolutely paid out of your CPF financial savings. So in case you have ample funds in your CPF, you don’t want to fret as your coverage will probably be mechanically renewed yearly.

When you’ve got sufficient financial savings in your CPF to pay the complete premium, you’ll be mechanically lined for the utmost quantity of $70,000. The premium will first be deducted out of your Atypical Account. For those who do not need ample financial savings in your OA, the premiums will probably be deducted out of your Particular Account.

In case you are unable to pay the complete premium since you don’t have sufficient in your CPF, you could choose to pay the rest in money.

Lastly, should you actually can’t or don’t wish to pay for DPS, you’ll be able to contact the insurer should you resolve you wish to drop out of the scheme. The insurer will ship you an opt-out kind and, as soon as the termination is full, the pro-rated annual premium will probably be refunded to you.

Keep in mind that if you wish to reapply for DPS after terminating, you’ll be able to, however you must submit a well being declaration. The insurer could deny your protection if you’re not in good well being.

How do I profit from the Dependants’ Safety Scheme?

Whenever you’re younger with no commitments, it appears sort of foolish to pay annual premiums for a DPS coverage. (Though premiums are solely $18 a yr, so it’s probably not value quibbling over.)

However from the age of 30, the Dependants’ Safety Scheme begins to change into extra beneficial. That’s the age when folks begin settling down with their companions, getting married, having youngsters — and likewise when your mother and father begin retiring and relying on you.

For those who die or endure complete everlasting incapacity in your 30s and 40s, you could be placing a giant monetary pressure on a number of folks. The DPS scheme offers some primary protection within the type of a $70,000 payout on your family members.

After all, the payout from DPS isn’t going to be sufficient for all of your dependents to reside on eternally. However it could possibly assist with the short-term bills whereas they cope along with your loss.

Can I get the next payout than $70,000?

You possibly can’t alter the payout quantity underneath the Dependants’ Safety Scheme. However you’ll be able to complement your protection with a separate time period life insurance coverage coverage, which is value contemplating in case you have important liabilities like a house mortgage.

Time period insurance coverage insurance policies work in principally the identical manner as DPS, besides you’ll be able to select the quantity of payout you need, and your premiums will probably be adjusted correspondingly.

Under are some examples of time period insurance coverage.

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Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Get a lump sum payout upon demise or analysis of Terminal Sickness (TI) throughout the coverage time period

• Select from protection time period of 5 or 10 – X years as much as 85 Age Subsequent Birthday (ANB) at each 1 yr interval

• Renew your primary coverage each 5 or 10 years with out further medical underwriting

• Enhance your primary coverage protection upon reaching key milestones in life

• Convert your primary coverage to a brand new endowment or entire life coverage with out further medical underwriting

• An Interim Unintended Demise Profit is included underneath the Coverage

See all card particulars 

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Select between renewable coverage phrases of 10 to 40 years or phrases to age 64, 74, 84 or 100

• Take pleasure in assured coverage renewal with protection as much as ALB 100

• Time period Life Solitaire offers protection of S$500,000 and above solely

• Obtain a one-time medical concierge service when your coverage’s sum assured reaches S$3,000,000

• Take pleasure in entry to unique privileges with Earnings’s Solitaire Membership

See all card particulars 

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Select from renewable protection phrases of 5, 10, 20, 30 years or degree phrases as much as age 65, 75 or 100

• Benefit from the flexibility to transform to an AIA endowment, investment-linked or entire life plan earlier than age 70 with out addition medical underwriting

• Renew your coverage as much as age 101

• A Terminal Most cancers Profit is included underneath the coverage

• Customise your coverage with the Whole Everlasting Incapacity (TPD) and Important Sickness protection riders

See all card particulars 

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Select from protection phrases of 5 or 10 – X years as much as ANB 85

• Take pleasure in assured renewal of 5 or 10 yr insurance policies upon expiry with out additional medical underwriting

• Have the flexibleness to extend your protection upon reaching key life milestones

• Convert your coverage to an entire life or endowment plan as much as your coverage’s protection quantity

See all card particulars 

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Select from versatile coverage phrases of 5-10 years for Renewable & Convertible (R&C) coverage or 11-40 years for Degree & Convertible (L&C) coverage

• Take pleasure in assured coverage renewal until age 85 with out additional medical underwriting

• Select to transform your coverage to different life insurance coverage throughout your coverage time period

• Profit from the Stop Smoking Incentive the place one can take pleasure in non-smoking premiums in the event that they give up smoking throughout the first 3 years of their coverage time period

See all card particulars 

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Select from renewable phrases of 5 to 30 years or term-to-age protection as much as age 50, 55, 60, 65, 70, 75 or 99

• Choose from a variety of fee choices, from single fee to paying throughout your entire coverage time period

• Take pleasure in assured coverage renewals with out addition medical underwriting

• Safeguard your self in opposition to inflation with the Indexation Possibility for term-to-age coverage holders

• Convert your coverage to an entire life plan with out further medical underwriting

See all card particulars 

You possibly can get a quote for time period life insurance coverage on MoneySmart or learn extra about time period insurance coverage in Singapore.

Within the occasion of your demise, each DPS + your non-public time period insurance coverage insurance policies pays out. So there’s no actual must cancel your DPS coverage even in case you have a separate life insurance coverage plan.

Consider DPS as your backup plan — if one thing occurs and also you’re not in a position to pay your non-public life insurance coverage premiums, no less than you’re nonetheless lined for $70,000 underneath DPS.

declare from the Dependants’ Safety Scheme?

You can also make a declare by submitting to your insurer, i.e. Nice Japanese Life (from April 2021 onwards). The declare will probably be processed if the insured member is any of the next:

• Licensed to have handed away,
• Identified with a terminal sickness
• Identified with complete everlasting incapacity

Take observe that claims that come up out of suicide, self-inflicted damage, felony offences or intentional acts is not going to be lined. See full phrases and circumstances on the CPF Dependants’ Safety Scheme web page.

If your beloved has handed away and also you aren’t positive if he/she’s lined underneath DPS, you’ll be able to e-mail [email protected], or examine with the respective DPS insurer.

DPS claims vs CPF nomination scheme: what’s the distinction?

Do take observe that DPS claims are not the identical because the CPF nomination scheme.

Underneath the CPF nomination scheme, you resolve on who will get your CPF financial savings while you die. You possibly can choose greater than 1 nominee and specify the proportion of financial savings that may go to them.

You possibly can submit and alter your CPF nominee at any level. For those who don’t specify your nominee(s), your CPF financial savings will probably be distributed to your next-of-kin in line with inheritance legal guidelines.

DPS additionally requires you to appoint your beneficiaries, i.e. who ought to obtain the payouts should you die. However your CPF nominee has no bearing in your DPS nominees; you’ll be able to select totally different beneficiaries for every.

Taking into account that DPS requires your beloved to file a declare, whereas CPF redistribution is computerized. So, for instance, you’ll be able to nominate your partner for DPS, and your ageing mother and father on your CPF.

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Analysis accomplished by: Samuel Tan

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