Find out everything you need to know about the Dependants’ Protection Scheme, including how it provides financial protection, coverage and claims.
One major driving factor behind insurance plans is the protection of your loved ones should anything happen to you. A plan that provides for this in Singapore is the Dependants’ Protection Scheme (DPS), which provides a payout to the insured or his/her family. It has the potential to cover your spouse, children, parents and siblings.
What is the Dependants’ Protection Scheme?
The DPS is an optional term-life insurance policy which provides financial protection for your dependants in the event of your death, illness or disability.
The scheme was developed to safeguard family members who are dependent on your income, should you pass away or no longer be able to work. Under this scheme, CPF members – i.e., Singapore Citizens and Permanent Residents – are assured peace of mind in this regard at low premium rates.
When the DPS was introduced in 1989, it was issued by the CPF board. However, in 2005 the scheme was privatised. Currently, the sole insurer providing the DPS is Great Eastern Life.
Who are the dependants / who will benefit?
You can nominate whoever you would want to receive the claim benefits in the event of a death claim, in the absence of which, the benefits will be paid to the proper claimant(s), including family members or the executor of the deceased’s estate.
Terminal Illness or Total Permanent Disability claim benefits will be paid to the insured. Should the insured lack mental capacity, the claim will be paid to the deputy in accordance with the Order of Court or donee of a valid Lasting Power of Attorney.
Who is eligible for the DPS?
If you are a Singapore Citizen or Permanent Resident aged 21 to 65, your DPS coverage is immediately extended to you upon your first CPF working contribution. You may cancel your coverage at any time by contacting the provider (Great Eastern Life) directly.
If you are between the ages of 16 and 65, are a Singapore Citizen or Permanent Resident, and are not automatically covered, you can also apply to join the DPS with Great Eastern Life directly.
Being accepted for the DPS is subject to you being in good health when the policy begins. Before making any choice to opt out, consider the financial stability that DPS offers for your family. If you decide to rejoin DPS, you will be asked to complete a health declaration, and coverage will be provided only if your health is in good enough condition.
How much are the premiums and how do I pay?
The table below reflects the premium to be paid according to how old you are:
|Age (years)||Premium||Sum assured|
|34 and below||S$18||S$70,000|
|35 to 39||S$30|
|40 to 44||S$50|
|45 to 49||S$93|
|50 to 54||S$188|
|55 to 59||S$298|
|60 to 64||S$298||S$55,000|
DPS premiums can be paid using your CPF. Deductions will first be made from your Ordinary Account; if the balance is insufficient, your Special Account can also be used to pay. Any remaining amount can be paid using cash.
If you are unable to pay the premiums, you can also opt to be insured for a lower amount (minimum sum assured is S$5,000).
How do I / my dependants claim?
Besides a claim in the event of death, claims can also be made when the injured suffers from Terminal Illness or Total Permanent Disability. The former refers to illnesses that are expected to result in death within 12 months, while the latter refers to the inability to take part in any employment permanently or the total permanent loss of physical function of both eyes, both limbs, or one eye and one limb.
The following documents are required for claims:
- Death claim form (available on insurer’s website)
- Certified true copy of the death certificate
- Letter from Immigration and Checkpoint Authority for death occurring overseas
- Claimant’s identity card and proof of relationship with deceased
- Doctor’s Statement if the death occurred overseas, to be completed by the last doctor who attended to the deceased person
- Last Will of deceased (if deceased left a last Will)
- Newspaper cutting and/or policy report for accidental death
Terminal Illness / Total Permanent Disability
- Total and Permanent Disability claim form (available on insurer’s website)
- Doctor’s Statement (available on insurer’s website)
- Receipt for the fee charged for completion of the Doctor’s Statement (insurer will reimburse the fee after concluding the claim)
- All available lab and test results
A lump sum benefit of S$70,000 will be paid out to claimants should the insured be between the ages of 16 to 59, and S$55,000 if the insured is 60 to 65 years old.
When will the policy terminate?
You will be covered until the end of the policy year during which you turn 65 years old.
The DPS is an affordable way to ensure that your loved ones will have some measure of financial protection should anything happen to you. The lump sum payout upon death or terminal illness / permanent disability should help to tide them over for a while. However, if you already have similar term or life policies, or if your dependants are already financially independent, you can consider terminating this policy – especially as the premiums get increasingly expensive the older you grow.
DPS is one way of ensuring protection for your loved ones in the event of unforeseen calamities; another way is through getting personal accident insurance. Compare the options available to see which best suits your needs!
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