Dependents Protection Scheme

[~sabaisabai~]

premium increases with age ma. similar to like MINDEF/MHA insurance. cheap when younger. but when older exponentially more expensive

is not compulsory.

https://www.cpf.gov.sg/member/faq/a.../is-dependants--protection-scheme-compulsory-

thank you, that answered my question

 

[xiaosinsinful]

is it mandatory? if we dont want, can cancel?

You can cancel, just submit a form quite straightforward

 

[reddevil0728]

thank you, that answered my question

i realised i didn't address your post that i quoted. have edited it

 

[~sabaisabai~]

You can cancel, just submit a form quite straightforward

thank you, form to download from CPFB?

 

[sohguanh]

is it mandatory? if we dont want, can cancel?

It is not mandatory. But do you have spouse and children? If don't have I don't see how this will help maybe to your elderly parents? For me premium of $18 and deduct from CPF is well affordable but the super big jump when you are no longer working and still need to pay is what concern me.

 

[reddevil0728]

thank you, form to download from CPFB?

See the link you have quoted

 

[~sabaisabai~]

It is not mandatory. But do you have spouse and children? If don't have I don't see how this will help maybe to your elderly parents? For me premium of $18 and deduct from CPF is well affordable but the super big jump when you are no longer working and still need to pay is what concern me.

will look into it, super jump? Jump to how much for you?

 

[reddevil0728]

will look into it, super jump? Jump to how much for you?

https://www.cpf.gov.sg/member/faq/a...mium-do-i-need-to-pay-to-be-covered-under-dps

 

[xiaosinsinful]

thank you, form to download from CPFB?

Nope I submitted the form from great eastern they are the underwriter for DPS
https://www.greateasternlife.com/sg...e-insurance/dependants-protection-scheme.html
my 2cent on why I opted out. I feel that the premium is too high compared to the benefits it gives


this is especially so when you get older(and let’s be honest, that’s when you need it the most). at that type of pricing you might as well get a term plan that have higher coverage

 

[sohguanh]

will look into it, super jump? Jump to how much for you?

Refer to https://www.cpf.gov.sg/member/faq/a...mium-do-i-need-to-pay-to-be-covered-under-dps

Mine is 93 will jump to 188 that will be DOUBLE! Then from 188 jump to 298!!! And age 60-64 payout reduced from 70k to 55k. It end at age 65! This is typical term insurance format. Young super cheap and payout good if kena. Imagine you pay $18 get 70k payout this is good deal but that is if you kena. Never kena then nothing.

 

[~sabaisabai~]

Nope I submitted the form from great eastern they are the underwriter for DPS
https://www.greateasternlife.com/sg...e-insurance/dependants-protection-scheme.html
my 2cent on why I opted out. I feel that the premium is too high compared to the benefits it gives


this is especially so when you get older. at that type of pricing you might as well get a term plan that have higher coverage

thanks for sharing

 

[sohguanh]

Nope I submitted the form from great eastern they are the underwriter for DPS
https://www.greateasternlife.com/sg...e-insurance/dependants-protection-scheme.html
my 2cent on why I opted out. I feel that the premium is too high compared to the benefits it gives


this is especially so when you get older. at that type of pricing you might as well get a term plan that have higher coverage

Term plan insurer not stupid also. As you age you think they offer better deals? If you are the insurer will you do loss making business? Customer older higher chance to claim from you so why will you price your term life cheap? In fact for some insurers term plan end at age 65.

 

[reddevil0728]

Nope I submitted the form from great eastern they are the underwriter for DPS
https://www.greateasternlife.com/sg...e-insurance/dependants-protection-scheme.html
my 2cent on why I opted out. I feel that the premium is too high compared to the benefits it gives


this is especially so when you get older(and let’s be honest, that’s when you need it the most). at that type of pricing you might as well get a term plan that have higher coverage

Eh why older is when you need it the most?

that goes against the intention of what dependent protection scheme is for no?

 

[~sabaisabai~]

I not talking about death.. When I in hospital... This insurance give nothing?

give only upon death

 

[sohguanh]

give only upon death

To be precise death, tpd. TPD is not die yet but permanently disabled. But I read post what if you later recover then the monies insurer will claw back? Hmmm then doctor certification of permanently disabled is crucial? Hmmm

 

[xiaosinsinful]

Term plan insurer not stupid also. As you age you think they offer better deals? If you are the insurer will you do loss making business? Customer older higher chance to claim from you so why will you price your term life cheap? In fact for some insurers term plan end at age 65.

I did a quick and rough calculation

if you get a term life of 100k at 25yo at a premium of $110.10(fixed term from FWD as example)

total cost from 25yo-64yo would be 110.10*39=$4293.9

now compare that to DPS. For this one you have to put in more work because the prices are different for different age
but if you did the math you would pay $4947 for the same length of coverage

Other than its cheaper you also have to consider ….
1. for DPS coverage amount from 25-59yo is 70k for 60-64yo is 55K while the lowest fixed term is 100k
2. for fix term it is… well fixed. But for DPS, they might change premium amount in the future who knows?
3. fix term you can cover up to 70yo(e.g from FWD), DPS stops at 64yo

biggest pro of DPS? Can use CPF to pay

buy what? Your money, you decide

 

[~sabaisabai~]

Nope I submitted the form from great eastern they are the underwriter for DPS
https://www.greateasternlife.com/sg...e-insurance/dependants-protection-scheme.html
my 2cent on why I opted out. I feel that the premium is too high compared to the benefits it gives


this is especially so when you get older(and let’s be honest, that’s when you need it the most). at that type of pricing you might as well get a term plan that have higher coverage

wow, the sum assured reduced once hit 60 and yet paying the same amt of premium.. hmmmm

 

[reddevil0728]

wow, the sum assured reduced once hit 60 and yet paying the same amt of premium.. hmmmm

Or you can look at it the another way.

if maintain SA, the premium will be exponentially higher.

so they have to decide, make it still reasonable for both premium and SA. Or just make it super expensive and same SA

 

[sohguanh]

I did a quick and rough calculation

if you get a term life of 100k at 25yo at a premium of $110.10(fixed term from FWD as example)

total cost from 25yo-64yo would be 110.10*39=$4293.9

now compare that to DPS. For this one you have to put in more work because the prices are different for different age
but if you did the math you would pay $4947 for the same length of coverage

Other than its cheaper you also have to consider ….
1. for DPS coverage amount from 25-59yo is 70k for 60-64yo is 55K while the lowest fixed term is 100k
2. for fix term it is… well fixed. But for DPS, they might change premium amount in the future who knows?
3. fix term you can cover up to 70yo(e.g from FWD), DPS stops at 64yo

biggest pro of DPS? Can use CPF to pay

buy what? Your money, you decide

This kind of argument I read 20+ years ago so not new to me. But key is I survive until now so means if I opt for term when I was young that time, I rugi based on premiums paid compared to what I paid using CPF. Now for my case is as I get older even the CPF premiums paid is no longer cheap which is why my earlier post anyone intend to keep paying. Also factor in if I retire at age 55 how to find monies to keep paying until age 65? Hmmmm

 

[qhong61]

This kind of argument I read 20+ years ago so not new to me. But key is I survive until now so means if I opt for term when I was young that time, I rugi based on premiums paid compared to what I paid using CPF. Now for my case is as I get older even the CPF premiums paid is no longer cheap which is why my earlier post anyone intend to keep paying. Also factor in if I retire at age 55 how to find monies to keep paying until age 65? Hmmmm

Use cash.
Else don't buy.
Should be insured $70k not $55k till 65.