The Central Provident Fund Board (CPFB) announced on 2 October 2020 that, from 1 April 2021, CPF members under the Dependants’ Protection Scheme (DPS) will enjoy a higher sum assured of $70,000 at more attractive premiums. The scheme will also cover members up to age 65. Currently, the sum assured is $46,000 and DPS coverage is capped at age 60.
In the same announcement, CPFB also stated that Great Eastern Life will take over the administration of all DPS policies from 1 April 2021. No action is required from Income’s DPS policyholders at this point in time, as Income will continue to issue new DPS policies and serve DPS policyholders until the transition to Great Eastern Life on 1 April 2021.
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 a term insurance that 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.
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.
Note CPF nomination does not cover DPS claim proceeds. You can nominate your nominees under the new Nomination Framework under the Insurance Act which was implemented on 1st September 2009.