Yes, of course.
CPF increased the Drawdown Age (now called the Payout Eligibility Age) to 62 before CPF LIFE was introduced. And you have to compare apples to apples here. It was 60 and increased in steps to 65. (There was always an option to defer the payout start date to an older age, and there still is. So it's 60 to 65, period.)
And it's even a little more complicated since the surplus (except Medisave) is available for withdrawal at age 55.
So, will the Payout Eligibility Age increase further? Maybe, but I don't think it'll happen soon. CPF might even introduce something like a FRS-level (but with property pledge) early CPF LIFE payout option at age 62 or 63 -- that could happen, too. Many things are possible, and some of them are realistic.
Yes, your nominated heir receives every penny, with interest. In fact, if you don't need the money for your own needs, you can defer your CPF LIFE payout to age 70. Then, if you die before age 70, same thing: your nominated heir receives it all. If you live past your 70th birthday, and if you still don't need the money for your own needs, still no problem: sign up for CPF LIFE Basic, and as the checks roll in simply hand them over to your nominated heir(s) as pre-demise gifts. Whatever residual remains goes to your nominated heir(s), too.
There's absolutely no problem leaving money to heirs, if that's what you want to do (and can afford it).