Dependents Protection Scheme

BBCWatcher

BBCWatcher

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reddevil0728 said:
Self is more like CI/PA/Hospitalisation.
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Disability Income Insurance ("DII"), Long-Term Care Insurance ("LTC"), and personal liability insurance also defend a living individual against various calamities and catastrophes affecting him/herself. Those calamities and catastrophes may or may not affect others, too.

The Dependants' Protection Scheme is term life insurance. Starting April 1, 2021, the sum assured (death benefit) will be raised to S$70,000 and the maximum available term to one's 65th birthday. The increase in the sum assured makes sense given that the cost of living continues to rise in Singapore -- slowly, even very slowly, but up. Pushing out the maximum coverage age makes a great deal of sense given how common it is now for couples to have children later in life than in prior generations. If anything these improvements are overdue.

You're auto-enrolled in the DPS when your first compulsory CPF contributions start up. You can opt out of the DPS if you wish.
 
reddevil0728

reddevil0728

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xiaosinsinful said:
dependents protection scheme still keep on deducting $ from those w/o dependents. is there a use for those without dependents?
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Dependent can mean a lot of things. Doesn’t mean you got no kid means you no dependent. So they don’t go on that basis.

If you really have no dependents, then may no need. But terminal illness or TPd you can claim. So maybe is more for ppl to take care of you in those events.
 
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xiaosinsinful

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reddevil0728 said:
Dependent can mean a lot of things. Doesn’t mean you got no kid means you no dependent. So they don’t go on that basis.

If you really have no dependents, then may no need. But terminal illness or TPd you can claim. So maybe is more for ppl to take care of you in those events.
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Then it goes back to TS initial post. If I have no dependents, no nomination. Who’s going to claim the DPS in the event something happen? If no one claim, isit just a waste of $?
 
BBCWatcher

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xiaosinsinful said:
dependents protection scheme still keep on deducting $ from those w/o dependents. is there a use for those without dependents?
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reddevil0728 said:
If you really have no dependents, then may no need. But terminal illness or TPd you can claim. So maybe is more for ppl to take care of you in those events.
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You certainly don't need a payment after you die if you don't have any dependents. (Yes, dependents means dependents. It's not the same word as spouse or child. Hypothetically your elementary school friend could be your dependent if he/she really does depend on your ongoing financial help.) Dead people cannot enjoy whatever cash can buy, so it's pointless.

True, you might be able to claim a DPS payout prior to your death based on Total and Permanent Disability (TPD) criteria. However, I don't think that's a strong argument in favor of keeping DPS coverage when you don't have any dependents. Often (but not always) in such circumstances you would be able to prematurely withdraw your CPF dollars, and you'll have that many more CPF dollars if you aren't paying DPS premiums. Moreover, you're undoubtedly going to be better off getting or boosting your Disability Income Insurance (DII) coverage ahead of TPD coverage.
 
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xiaosinsinful

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BBCWatcher said:
You certainly don't need a payment after you die if you don't have any dependents. (Yes, dependents means dependents. It's not the same word as spouse or child. Hypothetically your elementary school friend could be your dependent if he/she really does depend on your ongoing financial help.) Dead people cannot enjoy whatever cash can buy, so it's pointless.

True, you might be able to claim a DPS payout prior to your death based on Total and Permanent Disability (TPD) criteria. However, I don't think that's a strong argument in favor of keeping DPS coverage when you don't have any dependents. Often (but not always) in such circumstances you would be able to prematurely withdraw your CPF dollars, and you'll have that many more CPF dollars if you aren't paying DPS premiums. Moreover, you're undoubtedly going to be better off getting or boosting your Disability Income Insurance (DII) coverage ahead of TPD coverage.
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Yep, thanks for making my point. I agree. But seems like CPF just auto op in everybody (with or without dependents ) into the scheme
 
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torrent06

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xiaosinsinful said:
Yep, thanks for making my point. I agree. But seems like CPF just auto op in everybody (with or without dependents ) into the scheme
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Having a large pool of policyholders keeps the premiums low and really, most people would have some kind of dependants at some point of their lives eg elderly grandparents/parents, younger siblings when they just enter the workforce; their spouse and children when they get married. It is just a basic security net which covers until 60 (65 under the new enhanced scheme) (as there are people who never think of getting insured or think they can’t afford to get insured).
 
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