Dependants' Protection Scheme (DPS): Higher Sum Assured and Increased Coverage From 1 April 2021

More Coverage at Lower Premiums But Those Above 55 Have to Pay More

From 1 April 2021, most CPF members under the Dependants’ Protection Scheme will enjoy lower premiums for a higher sum assured of $70,000.

If you’re wondering why $70,000.

That amount is approximately 3 years of salary for a lower-income CPF member.

The maximum age of DPS coverage will also be increased to include members aged 60 to 65.

But the sum assured will be adjusted to $55,000 instead.

This is because they are more likely to have accumulated sufficient CPF savings.

Or have other savings to tide them over.

And are more likely to have fewer dependants by that age.

Note: members aged 55 to 59 will pay an extra $38 per year.

Currently, NTUC Income and Great Eastern Life share the administration of the DPS.

From 1 April 2021, Great Eastern Life will take over the sole administration of DPS.

So if you’re insured under NTUC Income you will need to make a new DPS nomination when you’re moved over.

Should you cancel your Dependants’ Protection Scheme (DPS)?

TL;DR: Dependants’ Protection Scheme (DPS)

“I will be bringing my mother to Japan on our last family trip.”

This was what my friend, who had just graduated (then) and had little to no savings, shared with me when she found out that her mum had limited time left.

Thankfully, the amount claimed under the Dependants’ Protection Scheme (DPS) allowed the family one last holiday together to her mum’s favourite destination.

So what is the Dependants’ Protection Scheme?

It’s about time you find out.

Your ultimate guide to everything related to the Dependants’ Protection Scheme (DPS):

• What is Dependants’ Protection Scheme (DPS)?
• Who will be covered under the Dependants’ Protection Scheme (DPS)?
• How much is the Premium for Dependendants’ Protection Scheme (DPS)?
• Is the Dependants’ Protection Scheme (DPS) really the best in the market?
• Benefits of Dependants’ Protection Scheme (DPS)
• Am I currently insured by Dependants’ Protection Scheme (DPS)?
• Pre-existing illnesses and medical condition not eligible for Dependants’ Protection Scheme (DPS)
• How to claim Dependants’ Protection Scheme (DPS)? 

Disclaimer: The Information provided by Seedly does not constitute an offer or solicitation to buy or sell any insurance product(s). It does not take into account the specific objectives or particular needs of any person. We strongly advise you to seek advice from a licensed insurance professional before purchasing any insurance products and/or services.

What is Dependants’ Protection Scheme (DPS)?

The Dependants’ Protection Scheme is a term-life insurance scheme that currently provides insured members and their family a basic coverage of up to $46,000.

Note: from 1 April 2021, this coverage will be extended to $70,000, and then adjusted to $55,000 for those aged 60 to 65

In the event that the insured members suffer from a Terminal Illness, Total Permanent Disability or pass away.

This coverage is effective worldwide.

Under DPS, the sum assured is paid out in the event of:

• Death
• Terminal Illness (an illness that a registered medical practitioner under the Medical Registration Act certifies is expected to result in death within 12 months)
• Total Permanent Disability, where you:
  • Lose the ability to take part in any employment permanently, or
  • Experience the total permanent loss of physical function of both eyes or two limbs or one eye and one limb

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Who Will Be Covered Under the Dependants’ Protection Scheme (DPS)?

You will be automatically included under the coverage of Dependants’ Protection Scheme (DPS) as long as you:

• are between the age of 21 and 60 years old (Note: from 1 April 2021, this will be extended to 65 years instead)
• are a Singapore Citizen or Permanent Resident (PR)
• made your first working contribution to the Central Provident Fund (CPF)

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How Much Is the Premium for the Dependants’ Protection Scheme (DPS)?

The premium varies according to age, as of your last birthday.

Here’s what the current and future annual premiums for DPS will look like, depending on your age:

Note: from 1 April 2021, the annual premiums will be adjusted down for most CPF members

As long as there are sufficient funds in your CPF, the premiums will be fully deducted from there.

Meaning, if you don’t have enough funds in your CPF Ordinary Account (OA)…

The premiums can be deducted from your CPF Special Account (SA) too.

This means that you don’t have to worry about paying out of your own pocket in order to be covered.

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Is the Dependants’ Protection Scheme (DPS) Really the Best in the Market?

Short answer?

NOT really, especially when it comes to cost!

While DPS looks really affordable at first glance…

The Straits Times did a quick comparison of annual premiums paid for the current version of DPS versus that of a term insurance product.

And realised that there’s more to it than meets the eye.

Here are the total premiums payable as compared to say… NTUC Income’s iTerm:

Source: Providend

If you keep your DPS throughout your working years from age 25 to 60, the total premiums work out to be $4,180.

This is due to DPS premiums increasing significantly from age 45 onwards.

The main takeaway?

Shop around the market for more affordable alternatives to the DPS when you’re close to your 45th birthday.

And in case you’re wondering, coverage under the DPS is not compulsory.

But before you terminate your DPS cover, make sure that you consider the benefits of the DPS carefully!

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Benefits of the Dependants’ Protection Scheme (DPS)

Cost-aside, the DPS has a few benefits.

The DPS:

• provides family members with a sum of money in case of unforeseen circumstances
• can be paid for using your CPF monies, which otherwise would have been illiquid anyway (Might as well right?)
• premiums are cheaper than most insurance policies when you are 40 years old and below, this is useful because that’s the phase in most Singaporeans’ lives where income is slowly building up and most of us have a lot of financial commitments.

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Am I Currently Insured by the Dependants’ Protection Scheme (DPS)?

To check if you are currently under DPS’s coverage:

• Head over to the CPF website
• Sign in using your SingPass ID and Password

• Click on “my cpf” tab at the top.

• Select “My Messages“
• Under Insurance, you should be able to see information about your Dependants’ Protection Scheme (DPS) coverage and your insurer. All Singaporeans are either under Great Eastern Life or NTUC Income for their DPS coverage.

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Pre-Existing Illnesses and Medical Condition Not Eligible for the Dependants’ Protection Scheme (DPS)

Like any other insurance policies, it is a must to declare any pre-existing medical conditions using the respective Health Declaration Form from either Great Eastern Life or NTUC Income.

Note: from 1 April 2021, Great Eastern Life will take over sole administration

For reference, here’s a list of illnesses which are ineligible for DPS coverage:

• Ischaemic heart disease/Coronary heart disease, heart valves disorders or arrhythmia (irregular heartbeats)
• Cancer
• Stroke/Cerebrovascular disorders, tumour of the brain, or Arteriovenous Malformation
• Renal failure or renal dialysis
• Diabetes with complications
• Chronic liver disorders, liver cirrhosis, hepatic encephalopathy or liver failure
• AIDS/HIV infection
• Dementia/Alzheimer’s disease
• Severe psychiatric or mental illness
• Motor neuron disease
• Muscular dystrophy
• Paralysis (Hemiplegia/Paraplegia/Quadriplegia)
• Chronic lung disease
• Rheumatoid arthritis with complications
• Multiple sclerosis
• Systemic lupus erythematosus with complications
• Parkinson disease with complications
• Pulmonary hypertension
• Aplastic anaemia, Thalassaemia major or severe blood disorders
• Any illness which is likely to lead to a limb/spinal/eye/mental condition 
• Any other illness, excluding those mentioned above, which is certified by a medical practitioner registered under the Medical Registration Act to be a serious illness.

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How To Claim From the Dependants’ Protection Scheme (DPS)?

To claim your benefit under the Dependants’ Protection Scheme.

Just submit an application to your insurer — either Great Eastern Life or NTUC Income — directly.

You’ll need to prepare a couple of things before submitting a DPS claim.

To Claim DPS for Death

• Death Claim Form (to be completed by nominee/claimant)
• FATCA and CRS self-certification form for an individual account (Not required if the death claim is filed only for Dependants’ Protection Scheme (DPS), Special Schemes or Group Insurance policies)
• Certified True Copy of Death Certificate (for overseas death, the original Death Certificate must be certified by your lawyer or any Notary Public)
• Letter from Immigration and Checkpoint Authority (ICA) – this letter is issued by ICA for Singaporeans or Permanent Residents (PR) who died overseas. It confirms receipt of the Singapore IC, Passport and overseas Death Certificate.
• Repatriation Report (if the body was repatriated to Singapore for cremation/burial)
• Cremation/burial permit (if cremation or burial occurred overseas)
• NRIC or relevant identification documents (e.g. passports, birth certificates) of the claimant(s)
• Proof of claimant’s relationship with deceased (please refer to the next page for supporting documents for proof of relationship)
• Newspaper Clipping and Police Report (if death was due to accidental or violent causes)
• Last Will of deceased (if deceased had left a Last Will)
• Latest pay slip of deceased (for group policies)
• Dependant Booster Benefit Claim Form (for Family Protect policy only), to be completed by nominee/claimant

To Claim DPS for Terminal Illness / Total Permanent Disability

• Medical/Accident/Living/Total and Permanent Disability Claim Form (to be completed by the claimant)
• NRIC or relevant identification documents (e.g. passport, birth certificate) of the claimant
• Attending Medical Practitioner’s Statement (AMPS) (to be completed by attending doctor & submitted to us)
• Medical reports/Laboratory reports/Hospital Discharge Summary
• Medically boarded out letter (where applicable)
• Newspaper clipping and Police/Accident Report (if Total & Permanent Disability or Permanent Incapacity was due to accidental or violent causes)
• The termination letter from the last employer OR CPF Statement showing last employment contribution (for DPS policy only)
• CPF Contribution Statement for the past 15 months (for DPS policy only)
• Latest pay slip of insured (for group policies)
• Dependant Booster Benefit Claim Form (for Family Protect policy only), to be completed by the claimant

Next, you’ll also have to fill up the DPS claim form.

For NTUC Income:

• Death claim form
• Medical/Accident/Living/Total and Permanent Disability claim form

After which, submit all claim documents at any of the NTUC Income branches or through an insurance adviser or by post to:

Claims Service Centre
NTUC Income Insurance Co-operative Limited
75 Bras Basah Road
INCOME Centre
Singapore 189557

For Great Eastern Life:

• Death claim form
• Medical/Accident/Living/Total and Permanent Disability claim form

After which submit all claims documents through a Great Eastern Life distribution representative or by post to:

The Great Eastern Life Assurance Company Limited
1 Pickering Street
Great Eastern Centre #13-01
Singapore 048659

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What If I Have More Questions About Dependants’ Protection Scheme?

Still unclear about the Dependants’ Protection Scheme?

Want to know what alternatives are out there?

Why not ask and discuss it with the friendly community at Seedly!

You can tap on the collective wisdom of the community and even share stuff like claim experience with others who might need your help!