Dependants' Protection Scheme

[blengend]

has not enrolled in the DPS scheme under CPF (Long Story)

A little back story, the DPS is a term insurance (up till age 60) that will pay out a lump sum in event of Death or Inability to work

Situation now, the lowest Sum Assured is $5000, and that costs $228/annum in premiums.

Assuming we are financial secured even if something does happen to her, is it still a good idea to get the plan?

The way I see it, the plan is quite expensive for it's pathetic sum assured, and we already have our H&S and Life policy. I would say it's a no go, but would like opinions of others here since I've learned alot from Money Mind.

 

[Skypower]

I am thinking of cancelling my DPS, till only death the $ is pay out and till age 60

 

[djchris]

I am thinking of cancelling my DPS, till only death the $ is pay out and till age 60

https://www.cpf.gov.sg/Members/Schemes/schemes/other-matters/dependants-protection-scheme

How did you derive that $228 per annum is for $5000?

The website clearlys states that the annual premium for aged 50-54 is $228 for a maximum sum assured of $46,000.

 

[littlegreenmen]

Cancelled mine some time back since I don't really have dependents. Money better used for medisave and such.

 

[Shion]

I just keep it since it is yearly premiums. I treat it as "extra protection portion" of $46000

 

[heymee]

Good if you have dependant...is a extra protection.

Remember to do nomination...if not when you hand in your IC ...it goes to your Estate..

 

[littlegreenmen]

DPS premiums are deducted from OA, nothing to do with medisave.

Ok then...transfered into SA already.

 

[blengend]

https://www.cpf.gov.sg/Members/Schemes/schemes/other-matters/dependants-protection-scheme

How did you derive that $228 per annum is for $5000?

The website clearlys states that the annual premium for aged 50-54 is $228 for a maximum sum assured of $46,000.

It came in a letter, that's what it says in the letter haha. Was abit shocked by it too, maybe it's because my mother is old and has medical conditions.

Good if you have dependant...is a extra protection.

Remember to do nomination...if not when you hand in your IC ...it goes to your Estate..

What does "Goes to your estate" mean?

 

[doody_]

What does "Goes to your estate" mean?

It's still your money, but now the law decides how the money is split.

Can read up here, but not sure if there have been any changes as the article is dated 2011: http://singaporelegaladvice.com/law...-will-how-is-the-deceased-estate-distributed/

Most updated will be to read the INTESTATE SUCCESSION ACT, but you have to comb through to pick out the relevant parts.

 

[heymee]

It's still your money, but now the law decides how the money is split.

Can read up here, but not sure if there have been any changes as the article is dated 2011: http://singaporelegaladvice.com/law...-will-how-is-the-deceased-estate-distributed/

Most updated will be to read the INTESTATE SUCCESSION ACT, but you have to comb through to pick out the relevant parts.

What you leave behind when you hand in IC will be considered as your "Estate" Under your Name. Like the Cash in your Banks , stocks ....those without nomination.

If you have a Will , it will be processed according to your Will- which takes like half a year.

If no Will , no nominations to your Insurance Policy like DPS , the payout from the Insurance will go to your Estate and the Government will decide for you.... who gets what ....this will take 1 year or more...


So before you hand in your IC ...please remember to do nomination to CPF, Insurance Policies...