Dependant's Protection Scheme ~ not worth?

[peacefulday]

do we need this? sum assured $46k till 60? Anyone opt out?

What is Dependants' Protection Scheme (DPS)?

The Dependants’ Protection Scheme (DPS) is an affordable term insurance scheme that provides insured members and their families with some money to get through the first few years should the insured members become permanently incapacitated or pass away.

Currently, DPS is administered by two insurers, Great Eastern Life and NTUC Income. The scheme is extended to CPF members who are Singapore citizens or Permanent Residents, between age 16 and 60, when they make their first CPF contribution.

DPS is an optional term insurance which covers CPF members for a maximum sum assured of $46,000 up to age 60. The coverage is worldwide. The DPS benefit will be paid out if the insured member passes away or becomes permanently incapacitated such that he or she can no longer work.

How much do I need to pay to be covered under Dependants' Protection Scheme (DPS)? How do I pay my premiums?

The premium payable depends on your age at your last birthday. Premiums can be paid from your CPF Ordinary and/or Special Account(s). The yearly premiums for a full sum assured of $46,000, based on age and regardless of gender, are as follows:


Age
(Last Birthday)

Yearly Premium
34 years and below - $36
35-39 years - $48
40-44 years - $84
45-49 years - $144
50-54 years - $228
55-59 years - $260

The coverage will continue as long as there is sufficient money in your CPF Ordinary and/or Special Account(s) for the deduction of the yearly premium. If you do not have sufficient CPF money to pay the yearly premium, you may pay cash to your insurer.

 

[naro]

its a cheap term-insurance and use CPF-OA, so i didnt opt out.

 

[teerance85]

The premiums are affordable. More or less could be covered by the 2.5% int given by the OA. I didnt opt out...

 

[peacefulday]

most of us is unaware as it's auto option-in with an initial small premium at young. By looking at age 45 above, $144 and so on for a sum assure of $46k... hmmm..

 

[FP_IFA]

most of us is unaware as it's auto option-in with an initial small premium at young. By looking at age 45 above, $144 and so on for a sum assure of $46k... hmmm..

Well if one suffered from death or TPD at age 40, he/she would have paid very little premium and yet his dependent can get the money.

Of course if he/she lived beyond 59 then the total premium seems a bit higher than a normal term plan. But do understand the plan primary focus was on insurance for early death and TPD as this is a big social problem.

DPS has helped a lot of people simply because a lot of people has 0 term or life insurance other than DPS.

 

[Alfdorel]

Well, I think its cheap for young people but when you got the financial stability, you can get higher coverage from other insurer companies.

Then again, this could be one of the term policies that complements your financial portfolio! Whatever works best!