Yahoo Finance Guide to Dependants’ Protection Scheme (DPS) in 2024: Understanding Eligibility, Premiums, and the Claim Process
Financial security and personal protection is becoming more crucial in light of navigating uncertainties, particularly for young working adults in Singapore. Designed to provide much-needed financial security, Dependants’ Protection Scheme (DPS)—a term life insurance scheme offered by CPF—emerges as the answer individuals are seeking. Let’s delve into DPS, understand its workings, and the benefits of this financial safety net.
Guide to Dependants’ Protection Scheme (DPS) in 2024
1. What is the Dependants’ Protection Scheme?
2. Am I covered under the Dependants’ Protection Scheme?
3. Who is eligible for the Dependants’ Protection Scheme?
4. How much do the DPS premiums cost?
5. Is the Dependants’ Protection Scheme mandatory?
6. But what if I have health problems?
7. What if I can’t afford my DPS premiums?
8. How do I benefit from the Dependants’ Protection Scheme?
9. Can I get a higher payout than $70,000?
10. How to claim from the Dependants’ Protection Scheme?
11. DPS claims vs CPF nomination scheme: what’s the difference?
12. Dependants’ Protection Scheme (DPS) vs Other Life Insurance
1. What is the Dependants’ Protection Scheme?
The Dependants’ Protection Scheme is a term life insurance programme that provides basic financial protection for Singaporeans and Permanent Residents and their families. Members are covered for an amount of $70,000 by default unless they opt out.
The scheme becomes active in the event of a member’s death or permanent incapacitation. It’s a cost-effective option for CPF members, with payments automatically deducted from the CPF Ordinary or Special Account.
2. Am I covered under the Dependants’ Protection Scheme?
You can check the status of your Dependants’ Protection Scheme coverage via:
Your CPF Statement
The “Providing for your loved ones” dashboard by logging in with your Singpass
*If you do not have a Singpass account, you can apply via the Singpass website.
3. Who is eligible for the Dependants’ Protection Scheme?
Singaporean citizens or Permanent Residents (PR) aged between 21 and 65 are automatically enrolled in DPS.
Typically, within 5 working days of making your first CPF contribution, you’ll receive a letter from Great Eastern Life—the sole administrator for DPS since 2021. The letter includes a welcome package that guides you through completing your DPS application.
Once your CPF account has sufficient funds for basic coverage, you’ll be automatically insured under this policy. However, you will also receive a health declaration form to disclose serious health conditions.
4. How much do the DPS premiums cost?
The premium payable yearly will be based on the age you have reached, at the point of payment.
Age (years) | DPS premium ($70,000 sum assured) |
34 and below | $18 |
35 to 39 | $30 |
40 to 44 | $50 |
45 to 49 | $93 |
50 to 54 | $188 |
55 to 59 | $298 |
60 to 64 | $298 ($55,000 sum assured) |
Note that DPS premiums remain the same regardless of gender and how long you’ve been on the Scheme.
5. Is the Dependants’ Protection Scheme mandatory?
The Dependants’ Protection Scheme isn’t compulsory. DPS premiums increase with age, so opting out could help conserve your CPF savings for retirement if you don’t need DPS coverage. You can opt out anytime by contacting your insurer Great Eastern Life to fill out an opt-out form.
Before terminating your DPS cover, it’s worth considering its advantages. Keeping your DPS cover offers some financial assurance for your family. Should you decide to rejoin DPS later, you’ll need to fill out a health declaration, and your coverage will be re-evaluated based on your health status at that time.
DPS isn’t a necessity for every individual. Each should reflect on whether they have dependants they need to support. There are several scenarios where individuals may not require DPS:
If their dependants have reached adulthood and are financially self-sufficient
If they have accumulated sufficient CPF or private savings. These savings can be passed directly to their dependants, providing financial support for the initial years following an unexpected death.
If they already possess private term or life insurance that provides ample coverage and payout to support dependants in the event of an untimely death.
6. But what if I have health problems?
You will need to fill in a health declaration form every time you apply for DPS whether it’s the first time or if you’re getting it reinstated at a later date.
The DPS insurer will consider your eligibility on a case-by-case basis. DPS coverage may be declined if you have any serious pre-existing medical conditions. It also can be assumed that if you lie and say you’re fine, but have a pre-existing condition that you try to claim upon later, you won’t receive your claim.
7. What if I can’t afford my DPS premiums?
DPS premiums can be fully paid from your CPF savings. If you have enough savings in your CPF, you will be automatically covered. The premium will be deducted first from your Ordinary Account or from your Special Account if there are insufficient funds.
If you can’t afford the premiums, you can either pay the remainder in cash or choose to drop out of the scheme by contacting the insurer. Should you terminate and reapply later on, you’ll need to submit a health declaration and your coverage may be denied based on your health condition. Our advice, keep the policy—especially since it’s a good deal!
8. How do I benefit from the Dependants’ Protection Scheme?
When you’re young with no commitments, it seems kind of silly to pay annual premiums for a DPS policy. (Although premiums are only $18 a year, so it’s not worth quibbling over.)
But from the age of 30, DPS starts to become more valuable. That’s the age when people start settling down with their partners, getting married, having kids—and also when your parents start retiring and depending on you.
If you die or suffer total permanent disability in your 30s and 40s, you may be putting a big financial strain on several people. The DPS scheme provides some basic coverage as a $70,000 payout for your loved ones.
Of course, the payout from DPS isn’t going to be enough for all your dependants to live on forever. But it can help with the short-term expenses while they cope with your loss.
9. Can I get a higher payout than $70,000?
You can’t alter the payout amount under DPS. However, you can supplement your coverage with a separate term life insurance policy, which is worth considering if you have significant liabilities like a home or car loan.
Term insurance policies work similarly to DPS, except you can choose the amount of payout you want, and your premiums will be adjusted correspondingly.
Below are some examples of term insurance.
Monthly Premium
S$28.47
Monthly Premium
AIA Secure Flexi Term
Apply NowApply directly on MoneySmart
More Details
Key Features
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.
Choose from renewable coverage terms of 5, 10, 20, 30 years or level terms up to age 65 or 75
Enjoy the flexibility to convert to an AIA endowment, investment-linked or whole life plan before age 70 without addition medical underwriting
Guaranteed renewal up to age 101 regardless of health condition
A Terminal Cancer Benefit is included under the policy
Customise your policy with the Total Permanent Disability (TPD) and Critical Illness coverage riders
Monthly Premium
S$26.75
Monthly Premium
Tokio Marine Term Assure II
Apply NowApply directly on MoneySmart
More Details
Key Features
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.
Choose a 5 or 10-year renewable policy term depending on your protection needs. For even greater flexibility and assurance, pick a coverage term from 11 years up to age 85. Your premium will remain the same throughout the policy term
Enjoy guaranteed renewal without any medical underwriting, even after original coverage term has ended
Have the flexibility to increase your coverage upon reaching key life milestones
Convert your policy to a whole life or endowment plan up to your policy's coverage amount
Monthly Premium
S$26.81
Monthly Premium
Manulife ManuProtect Term II
Apply NowApply directly on MoneySmart
More Details
Key Features
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.
Choose from flexible policy terms of 5-10 years for Renewable & Convertible (R&C) policy or 11-40 years for Level & Convertible (L&C) policy
Enjoy guaranteed policy renewal till age 85 without further medical underwriting
Choose to convert your policy to other life insurance plans during your policy term
Benefit from the Quit Smoking Incentive where one can enjoy non-smoking premiums if they quit smoking within the first 3 years of their policy term
Get additional protection with riders for total and permanent disability, critical illness and premium waiver
You can get a quote for term life insurance on MoneySmart or read more about term insurance plans in Singapore.
In the event of your death, both DPS + your private term insurance policies will pay out. So there’s no real need to cancel your DPS policy even if you have a separate life insurance plan.
Think of DPS as your backup plan—if something happens and you’re not able to pay your private life insurance premiums, at least you’re still covered for $70,000 under DPS.
10. How to claim from the Dependants’ Protection Scheme?
You can claim by submitting to Great Eastern Life. The claim will be processed if the insured member is any of the following:
Certified to have passed away
Diagnosed with a terminal illness
Diagnosed with total permanent disability
Take note that claims that arise out of suicide, self-inflicted injury, criminal offences or intentional acts will not be covered. See full terms and conditions on the CPF Dependants’ Protection Scheme page.
If your loved one has passed away and you aren’t sure if he/she’s covered under DPS, you can email member@cpf.gov.sg, or check with the respective DPS insurer.
11. DPS claims vs CPF nomination scheme: what’s the difference?
Among the multitude of schemes available, the DPS and the CPF nomination schemes are notable for their direct impact on an individual’s financial security. Although both schemes aim to provide financial security, they serve different purposes and function through distinct mechanisms.
DPS Claims | CPF Nomination Scheme | |
Purpose | Provides insured members and their families with some financial security if the insured members become permanently incapacitated or pass away | Allows CPF members to distribute their CPF savings upon their demise |
Coverage | Covers death and permanent incapacity | Covers all CPF savings, which can be in the Ordinary, Special, Medisave, and Retirement accounts |
Payout | The insured or their family will receive a payout if the insured becomes permanently incapacitated or passes away | The nominees will receive the CPF member’s savings when the member passes away |
Nomination | No nomination required | CPF members can nominate who will receive their CPF savings |
12. Dependants’ Protection Scheme (DPS) vs Other Life Insurance
DPS | Enhanced DPS plan | Endowment plan | Whole life insurance plan | |
Coverage | Death, terminal illness, total permanent disability from 21 years old to 65 years old | Death, terminal illness, total permanent disability from 21 years old to 65 years old | Lifetime coverage for death, terminal illness, total permanent disability | Lifetime coverage for death, terminal illness, total permanent disability and critical illness |
Payout assured | Up to $70,000 | Up to $500,000 | Depends on the insurer’s offer of the percentage of capital guaranteed, guaranteed and non-guaranteed bonuses | Depends on the insurer’s offer of the percentage of capital guaranteed, guaranteed and non-guaranteed bonuses |
Guaranteed cash value | None | None | Yes | Yes |
Non-guaranteed bonuses | None | None | Yes | Yes |
Clueless about this life insurance thing? You can read more about life insurance in our basic guide.
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