Dependants’ Safety Scheme (DPS) – Eligibility, Premiums & The right way to Declare

When a Singaporean younger grownup begins incomes a full-time wage, it’s virtually a ceremony of passage to get bombarded with mail from banks and insurance coverage corporations. On the identical time, CPF may even ship a letter relating to auto-inclusion into this time period life insurance coverage scheme known as Dependants’ Safety Scheme (DPS).

What’s the Dependants’ Safety Scheme?

Dependants’ Safety Scheme is a time period life insurance coverage scheme which is robotically prolonged to all Singaporeans and PRs between 21 and 60. It’s not obligatory, however you need to choose out in case you don’t need to be coated.

In case you do nothing, you might be coated for the utmost sum of $46,000 up until your sixtieth birthday. Like most different time period life insurance coverage insurance policies, this profit will likely be paid out to your loved ones must you move away, or to you in case you turn into completely incapacitated.

Primarily, this scheme permits CPF members (mainly all Singaporeans and a few PRs) to get pleasure from some degree of economic safety at inexpensive premiums. You too can use your CPF Bizarre Account or Particular Account financial savings to pay for the premiums, so it’s a “painless” expense.

Month-to-month Premium

^S$21.32

Month-to-month PremiumDirect Apply

FWD Important Life – Direct Time period Buy

Min. Demise and TI Protection

^S$100,000

Min. Most cancers Insurance coverage Protection

^S$50,000

Max. Renewable Age

85

Month-to-month Premium

Reference Premium Profile
The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

^S$21.32

Apply NowApply straight on MoneySmartMore Particulars

Key Options

• Only one well being declaration and no medical examination.

• Rise up to $750,000 of Important Life cowl. LIA recommends 9-10x your annual revenue as the duvet quantity.

• Simply present your age, gender, smoking standing and protection quantity to get quote.

• Get protection for 1 yr with the assured choice to renew as much as age 85.

• Possibility so as to add most cancers rider to Important Life. Get 100% payout for most cancers, even early levels.

Eligibility circumstances for the Dependants’ Safety Scheme

​You’re robotically included below Dependants’ Safety Scheme in case you are a Singaporean citizen or PR between 21 and 60 years previous. Often, you’ll get a letter notification inside 5 working days from making your first CPF contribution.

This letter will come from both of these two insurers: Nice Jap Life or NTUC Earnings. The welcome package deal will information you on how one can full your DPS software. Which insurance coverage firm initially handles your insurance coverage coverage is randomly determined for you. Not proud of both one? You’ll have the choice to vary it later.

As quickly as you have the funds for in your CPF for essentially the most fundamental protection, you can be robotically coated by this insurance coverage coverage, however you can be despatched a well being declaration kind so you possibly can declare any severe well being points.

However what if I’ve well being issues?

You will want to fill in a well being declaration kind each time you apply for Dependants’ Safety Scheme whether or not it’s the primary time or in case you’re getting it reinstated at a later date. The DPS insurers will contemplate your eligibility on a case-by-case foundation. DPS protection could also be declined when you’ve got any severe pre-existing medical circumstances. It additionally then may be assumed that in case you lie and say you’re advantageous, however have a pre-existing situation that you simply attempt to declare upon later, you gained’t obtain your declare.

The right way to declare from the Dependants’ Safety Scheme?

You may make a declare by submitting to your explicit insurer, both Nice Jap Life or NTUC Earnings. The declare will likely be processed if the insured member is licensed to have handed away or recognized with a terminal sickness or whole everlasting incapacity.

Take notice that claims that come up out of suicide, self-inflicted damage, legal offences or intentional acts won’t be coated. See full phrases and circumstances on the CPF Dependants’ Safety Scheme web page.

If your beloved has handed away and also you aren’t positive if he/she’s coated below DPS, you possibly can e-mail [email protected], or examine with the respective DPS insurer. Do take notice that DPS claims usually are not the identical because the CPF money nomination scheme and is not automated.

Okay, okay, how a lot will DPS value me?

The Dependants’ Safety Scheme is inexpensive and premiums may be totally paid out of your CPF financial savings. So when you’ve got enough funds in your CPF, you don’t want to fret as your coverage will likely be robotically renewed yearly.

The premiums are age-dependent and are no matter gender. If in case you have sufficient financial savings in your CPF to pay the total premium, you can be robotically coated for the utmost quantity of $46,000. The premium will first be deducted out of your Bizarre Account. In case you shouldn’t have enough financial savings in your OA, the premiums will likely be deducted out of your Particular Account.

That is what you possibly can anticipate to pay every year:

In contrast to different insurance coverage insurance policies, your DPS premium will enhance as you age. Meaning, you’ll begin paying $48 a yr when you flip 35, or $260 a yr when you flip 55, no matter how lengthy you’ve been on the Scheme.

In case you are unable to pay the total premium since you don’t have sufficient in your CPF, it’s possible you’ll choose to pay the rest in money. Alternatively, you possibly can choose on your protection to be lowered to a minimal of $5,000, primarily based on the decrease premium you’ve paid.

Key Options

• Full protection on your hospitalisation, room, board, medical associated companies, Intensive Care Unit (ICU) bills, though co-insurance, deductibles, and pro-ration elements apply

• Full protection for MediSave-approved surgical procedures (all surgical procedures listed in Tables 1A to 7C), though co-insurance, deductibles, and pro-ration elements apply

• As much as 180 days pre-hospitalisation protection for therapies, together with any Accident and Emergency (A&E) therapies 24 hours previous to hospitalisation

• As much as one year post-hospitalisation protection for therapies in case you search therapy at pre-authorised non-public hospitals, restructured, or group hospitals

• Protection for deliberate inpatient and emergency therapies in Aviva pre-authorised hospitals

• Protection for main outpatient therapies: kidney dialysis, erythropoietin, chemotherapy, radiotherapy, brachytherapy, immunotherapy, stereotactic radiotherapy, and immunosuppressant medication for main organ transplant

• Extra protection for five essential sicknesses coronary heart assaults, main most cancers, stroke, finish stage lung illness, and finish stage liver illness

• Protection for preventive most cancers surgical procedure when you’ve got beforehand filed a declare for most cancers therapy with Aviva MyShield

• Free protection for new child if each you and your companion are Aviva MyShield policyholders

• Discounted premiums on your youngsters if each you and your companion are Aviva MyShield policyholders

Phrases and Circumstances

Hospital Ward Entitlement

Extra Advantages

Now, the massive query – who actually advantages from the Dependants’ Safety Scheme?

In case you’re like me, you’ve been paying for the Dependants’ Safety Scheme since receiving your first pay examine. In case you began work at 24, by age 34 you’d have paid 10 years’ value of premiums for a coverage you’ve fortunately by no means wanted to assert. Certain, it’s solely $360, however in case you actually needed to maximise your cash? It is best to solely begin making use of for DPS if you’re 30.

Let me clarify. In keeping with final yr’s statistics, males in Singapore get married once they’re 30, girls once they’re 28. They have an inclination to have a baby inside the first two years of marriage and a second baby inside the first decade of their married lives.

On the age of 30, it’s possible you’ll not solely have a partner and youngsters as dependents, you even have retiring mother and father as dependents. In case you die or undergo whole everlasting incapacity at this stage, you can be placing a giant monetary pressure on a number of folks.

Paying the total DPS premiums if you’re 30 until you’re 60 will value you a complete of $4,000.

However say you aren’t planning to quiet down simply but. Say you’re prepared to attend until you’re 40 earlier than you begin paying your DPS premiums, possibly since you married late, otherwise you’re not planning to have youngsters.

Paying the total DPS premiums if you’re 40 until you’re 60 will value you a complete of $3,580, or $420 lower than in case you had began at 30, and $780 lower than in case you had began at 21.

Why must you get DPS at 40? As a result of that’s when your physique begins to interrupt down. Your danger for coronary heart illness, osteoporosis and different illnesses linked to age will increase exponentially. The thought is to use for insurance coverage BEFORE you get any of those illnesses.

Month-to-month Premium

^S$26.15

Month-to-month PremiumPromotionCovers COVID-19

AVIVA MyProtector – Time period Plan II

Min. Demise and TI Protection

^S$100,000

Min. Important sickness Protection

^S$50,000

Max. Renewable Age

75

Month-to-month Premium

Reference Premium Profile
The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

^S$26.15

Promotion: Rise up to twenty% perpetual low cost on Time period plan and riders for min. sum insured of $1 million!Legitimate till 31 Dec 2020Apply NowApply straight on MoneySmartMore Particulars

Key Options

• The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.

• Get a lump sum payout upon loss of life or prognosis of Terminal Sickness (TI) inside the coverage time period

• Select from protection time period of 5 or 10 – X years as much as 85 Age Subsequent Birthday (ANB) at each 1 yr interval

• Renew your fundamental coverage each 5 or 10 years with out extra medical underwriting

• Enhance your fundamental coverage protection upon reaching key milestones in life

• Convert your fundamental coverage to a brand new endowment or complete life coverage with out extra medical underwriting

• An Interim Unintentional Demise Profit is included below the Coverage

Normal Info

Protection Info

Buyer Service

So what’s one of the simplest ways to make use of DPS?

For many life insurance coverage insurance policies, you’d need to apply as early as doable. It is because the premium is decrease the sooner you apply, and stays the identical for so long as the coverage is in impact. The Dependants’ Safety Scheme, however, will increase the premiums as you age, so it actually doesn’t matter if you begin, you’ll nonetheless be paying the identical annual premium.

So get a great time period life insurance coverage coverage from a non-public insurer if you’re younger. You need to make the most of your youth to get as low a premium with the excessive protection doable. In case you can afford it, get insurance coverage riders that cowl not less than essential sicknesses. Extra protection it is best to contemplate are for hospitalisation prices and surgical procedure. You might also need to look into private accident insurance coverage.

When you’re older, then soar on the DPS whilst you’re nonetheless wholesome. Don’t wait too lengthy in case some pre-existing medical situation is revealed earlier than you will get protection. As a result of there’s actually no penalty to making use of for DPS later in life, so long as you retain your physique in fine condition within the meantime.

Analysis performed by: Samuel Tan