Dependants’ Protection Scheme. What is It and Does It Help You?

The Dependants’ Protection Scheme (DPS) is a government-funded program that offers protection and support to families who have lost a loved one.

The scheme provides financial assistance, counselling and other forms of support to help families cope with such a tragedy.

Unlike Medishield Life, DPS is not compulsory. This means you can terminate your coverage at any time; however, you should always carefully consider your financial protection and coverage before ever choosing to do so.

Currently, DPS is solely administered by Great Eastern Life.

What does the DPS do?

The DPS offers financial assistance to the insured or their families in the unfortunate event of an untimely death, terminal illness or total permanent disability.

DPS covers insured members up to 65 years old. Members up to 60 years old will be covered for a maximum sum assured of $70,000.

For members above age 60 and up to age 65, DPS covers them up to a maximum sum assured of $55,000.

How do I apply for the DPS?

All Singaporeans and Permanent Residents between age 21 and 65 are automatically covered upon your first CPF working contribution.

If you are aged 16 and above and were not extended a DPS cover automatically but wish to be insured, you can apply to join DPS with Great Eastern Life directly.

What are the requirements for the DPS?

To be eligible for the DPS, you need to be in good health when your policy commences. Similar to any life insurance, DPS cover may be deferred or declined due to serious pre-existing illnesses.

Is there anything else I should know about the DPS?

Yes. The coverage is effective worldwide giving insured members an additional peace of mind.

Previously this coverage was $46,000 but since 1 April 2021, it has been extended to $70,000 or $55,000 for those aged 60 to 65.

Premiums start at $18 per year for members below 35 years up to a maximum of $298 for those between 60 to 64 years.

And it’s entirely payable by CPF making it a great basic insurance plan for just about everyone.

That being said, its coverage isn’t extensive and it really just meant to be a basic plan and depending on an individual’s protection needs, this might not be enough.

Ultimately, like any other financial instrument, it can be a useful asset in your portfolio but you should always do a proper financial calculation and analysis to determine whether it is the best option for you.

Now… I wonder where you might be able to find a financial consultant who can advise you further? (*hint hint)