Planning for the unexpected isn’t always fun, but trust me — it’s necessary.
Having spent years navigating insurance options, I know how confusing it can be, especially with something like the Dependants’ Protection Scheme (DPS).
Whether you’ve heard about it or not, this scheme could be what saves your family from financial hardship when life takes a turn for the worse.
In this post, you’ll learn:
- What the DPS is all about
- Who’s eligible for the scheme
- What DPS covers, and when it ends
- How to find out if you’re covered
If you’re curious about whether DPS is right for you, or how it fits into your financial planning, keep reading.
What is the Dependants’ Protection Scheme (DPS) & what does it cover?
The Dependants’ Protection Scheme (DPS) is a term life insurance plan specifically designed to provide financial support to Singaporeans.
If you’re a working adult, chances are you’re already enrolled in this scheme without even realising it.
Automatically covering you upon your first CPF contribution, DPS ensures that your family is taken care of financially should anything unexpected happen.
In essence, DPS offers coverage in the unfortunate event of death, terminal illness, or total permanent disability.
The coverage extends to a maximum sum of $70,000 up until the age of 60, which then drops to $55,000 between ages 60 to 65.
This might not sound like a lot in the grand scheme of things, but for many families, it provides a much-needed buffer during tough times – especially when there is a sudden loss of income.
Unlike some other insurance plans, DPS is straightforward.
It’s not about accumulating savings or cash value over time, but purely about providing a financial safety net.
This is why the premiums are relatively low.
Who is eligible for the DPS?
You are eligible for the DPS if you meet all of the following conditions:
- Singapore citizen or Permanent Resident
- Between age 21 and 65
- Made your first CPF contribution
How much does DPS cover me for?
Here is what DPS will cost you based on your age group:
| Age Last Birthday | Maximum Sum Assured | Minimum Sum Assured |
| 34 and below | $70,000 | $5,000 |
| 35-39 | ||
| 40-44 | ||
| 45-49 | ||
| 50-54 | ||
| 55-59 | ||
| 60-64 | $55,000 |
How much does the DPS premium cost, and how do I make payments?
| Age (as of payment date) | Yearly Premium for $70,000 sum assured |
| 34 years and below | $18 |
| 35 – 39 years | $30 |
| 40 – 44 years | $50 |
| 45 – 49 years | $93 |
| 50 – 54 years | $188 |
| 55 – 59 years | $298 |
| 60 – 64 years | $298 (for sum assured of S$55,000) |
DPS premiums can be paid by your CPF Ordinary Account (OA) and CPF Special Account (SA).
If there are insufficient funds in your OA, the amount will only be deducted from your SA.
In the case of your CPF account having insufficient funds to pay for the maximum sum assured ($55,000 or $70,000 depending on your age), you can decide if you will either be
- Insured for a lower amount ($5,000) or,
- You can top up the difference in cash, cheque, or GIRO (General Interbank Recurring Order) within 60 days from your policy renewal date
If there is no premium paid after 60 days from the renewal date, your DPS policy will lapse.
Who can be my dependants?
One of the flexible aspects of the Dependants’ Protection Scheme (DPS) is that you can nominate anyone you choose to receive the benefits in case of a death claim.
This means your nominees don’t necessarily have to be direct family members; they could be a close friend, relative, or anyone you wish to provide for.
However, if you haven’t made a nomination or left a will, the benefits will automatically be given to a proper claimant, such as an executor of your estate or a close family member.
This usually means your spouse, parent, child, or sibling.
The goal here is to ensure that someone responsible is in charge of the funds and can manage them appropriately for your dependants.
How do I make DPS nominations?
You must be at least 18 years old to make a nomination under DPS.
To do so, you can download the DPS nomination form available on Great Eastern’s website and mail it’s hardcopy to its physical office.
You will be required to have 2 physical witnesses with you who can sign the form, as well as details of your policy number (via the GE app) and nominees (Name, NRIC number, Address, Telephone Number, and Date of Birth).
Your witnesses are required to be over the age of 21, and they cannot be a nominee or the spouse of the nominee.
Similar to how you would make a CPF nomination, the percentage of benefits to your nominee(s) must be up to 2 decimal places and add up to a total of 100%.
I covered this in more detail in my guide to DPS nominations here.
How can I or my dependants make a claim from the Dependants’ Protection Scheme?
Step 1: Understanding the claim criteria
The point of DPS is to provide financial protection in the event of an insured member’s untimely death, terminal illness, or TPD.
So to first ensure it will be a valid claim, you would need to know what defines terminal illness or TPD.
Step 2: Understanding the claim exclusions
Exclusions are items/events that cannot be covered by DPS.
So, you cannot make a claim if any of such events occur within the first policy year:
- You committed self-inflicted injury or suicide
- You committed a criminal offence punishable by death
- Your claim arose out of your intentional criminal act
You also cannot claim any benefits if
- You suffer from serious illness, a terminal illness, or TPD before the policy commences
- You provided false or misleading statement of information
- Your claim arose from wars or any warlike operations or participation in any riot
Step 3: Fill up the necessary documents
Making a claim under DPS can fall under 2 categories: death or terminal illness/TPD, which would require different types of documents and methods of payments.
| – | Death Claim | Terminal Illness/TPD Claim |
| Documents Required |
|
|
| Method of Payment | Claims will be paid to your dependant(s) according to the percentage of your nomination.
If there is no nomination, the claim benefits will be distributed to the proper claimant(s) which are your family members (i.e your spouse, parent, child, or sibling) or the executor of the deceased’s estate. |
Claims will be paid in one lump sum.
For insured members who lack mental capacity, an Order of Court is required for payment. |
Step 4: Claim Methods
Claims can be made directly by submitting an application to Great Eastern Life.
For death claims, you can fill up this form.
And for TPD claims, you can fill up this form.
Or else, a claim application will be sent to the nominees or next-of-kins (if there are no assigned nominees) upon the death of the insured member under DPS.
This is done once they are notified of the member’s death by the Immigration and Checkpoints Authority (ICA), which they would also inform Great Eastern Life.
When does the Dependants’ Protection Scheme end?
The Dependants’ Protection Scheme (DPS) coverage ends under several specific conditions:
- When you reach age 65: DPS provides coverage only up until your 65th birthday. After this, the scheme automatically ceases, and you will no longer be eligible for coverage under DPS.
- Upon a successful claim: If you make a successful claim for death, terminal illness, or total and permanent disability, the coverage ends once the payout is made.
- If you opt out: As a CPF member, you have the option to opt out of the DPS at any time. Once you choose to do so, your coverage ends immediately.
- Non-payment of premiums
DPS coverage will also end if you fail to pay the required premiums within a specified grace period. If there aren’t enough funds in your CPF account and no other payment arrangement is made, the policy lapses. - Loss of Singapore Citizenship or Permanent Resident status: If you no longer hold Singapore Citizenship or Permanent Resident status, your DPS coverage will be terminated.
In any of these scenarios, your DPS coverage will end, and you will no longer be protected under the scheme.
How to Find Out If You’re Covered by DPS
Wondering if you’re already covered by the Dependants’ Protection Scheme (DPS)?
It’s easy to check. Just follow these simple steps:
- Go to the CPF website.
- Login using your SingPass credentials.
- Once logged in, click on “My Messages” on the left-hand panel.
- Scroll down to the section labelled “Insurance”.
Here, you’ll be able to see whether you’re covered under DPS.
If you’re enrolled, the relevant details about your policy should be displayed.
If not, the section will be empty, indicating that you’re not currently covered.
Is the Dependants’ Protection Scheme compulsory?
No, the Dependants’ Protection Scheme (DPS) is not compulsory.
While many CPF members are automatically enrolled in the scheme once they make their first CPF contribution and meet the eligibility criteria (Singapore Citizen or Permanent Resident between the ages of 21 and 65), participation is optional.
You can choose to opt out at any time if you feel that the coverage provided by DPS is not necessary for your personal financial planning.
However, many Singaporeans find it beneficial to remain in the scheme due to its affordable premiums and the financial protection it offers to their families.
Ultimately, it’s up to you to decide whether you want to stay covered or opt out.
Should I opt out of DPS?
This is a question that many are asking – should you opt out from DPS?
I think you shouldn’t opt out from DPS, but this depends on you actually.
More specifically, whether you have any life insurance protection apart from what DPS covers, and whether you can afford the premiums.
Firstly, let’s talk about coverage.
As mentioned, the DPS covers you for up to $70,000.
The rule of thumb for life insurance coverage is 10 years of your annual income.
This is so that your dependants have time to financially recover.
If you do the calculations, $70,000 is sufficient coverage if you only earn $583 monthly.
So unless you’re earning lesser than $583/month, it’s not enough.
Next, check whether you have any other life coverage.
This can come from your term plans, whole life plans, critical illness plans, and even your endowment and retirement plans!
If the sum of your combined death coverage is 10 years of your annual income, then you can consider opting out from DPS.
Lastly, let’s talk about affordability.
| Age Last Birthday | Yearly Premium |
| 34 and below | $18 |
| 35-39 | $30 |
| 40-44 | $50 |
| 45-49 | $93 |
| 50-54 | $188 |
| 55-59 | $298 |
| 60-64 |
As seen from the above DPS premium table, DPS is affordable starting at only $18/year.
Yes, this goes up when you reach different age groups, and you’ll lose out (a little bit) on your retirement income with the CPF LIFE, but the cost-to-benefit ratio is almost unbeatable anywhere else in the market.
That’s an extreme value you’re getting here. The DPS is definitely worth your money.
And the best part?
It can be paid using your CPF – money you can’t touch anyway.
How to opt out of DPS?
Opting out from DPS is simple. You can always call Great Eastern directly and speak to a customer service officer to opt-out.
Another alternative would be upon receiving a physical welcome letter from Great Eastern indicating your successful enrollment into DPS, it would also be accompanied by an application form that you can fill out to opt-out.
Remember that the opting-out process differs for auto-joiners and applicants for DPS.
| Auto Joiners | Applicants |
| If you opt out of DPS within 2 months of the policy commencement date, a full refund will be returned to you.
If you opt out after the 2-month period, a pro-rated premium based on the remaining days of your coverage will be returned to you. |
If you had applied for DPS directly and decide to terminate the policy within a 14-day period from the policy commencement date, a full refund will be returned to you.
If you terminate the policy after the 14-day period, a pro-rated premium based on the remaining days of your coverage will be returned to you. |
If you had paid for your premiums via cash, cheque, or GIRO, your premiums would be refunded by cheque.
If your premiums had been deducted from your CPF account, the premium refund will be paid back to your CPF account.
Just keep in mind that if you wish to rejoin the DPS with Great Eastern in the future, you will be required to submit a health declaration which will be subjected to health underwriting.
You would also not be entitled to the benefits provided by DPS upon opt-out.
Alternatives for the Dependants’ Protection Scheme
If you accidentally opted out, are unable to get covered by DPS, or for any reason just don’t want to have DPS coverage, there are alternatives in the market.
The main alternative to the DPS is a term life insurance plan.
They provide the same thing – low premiums for death, TI, and TPD cover.
However, they tend to be more expensive relative to the DPS.
You can check out our post on the best term insurance plans in Singapore to see which is best for you.
FAQs
Does DPS provide guaranteed cash values and non-guaranteed bonuses?
No, DPS does not provide guaranteed cash values or non-guaranteed bonuses.
Unlike some other types of insurance plans, the Dependants’ Protection Scheme is a term life insurance plan, meaning it focuses solely on providing coverage in the event of death, terminal illness, or total permanent disability.
Since it’s not an investment-linked plan, there are no cash values accumulated over time, and it doesn’t pay out bonuses.
The primary purpose of DPS is to provide affordable, straightforward protection for your dependants during difficult times.
Is DPS worth the money?
Yes, DPS is generally worth the money, especially considering its affordability and the financial protection it offers.
For a relatively low annual premium, the Dependants’ Protection Scheme provides coverage for death, terminal illness, and total permanent disability.
While the coverage amount may not be substantial for everyone, it does offer a basic safety net for your dependants.
Since the premiums can be paid using your CPF savings, it doesn’t affect your day-to-day cash flow.
For most people, the peace of mind knowing their loved ones have some financial protection makes DPS a worthwhile investment.
What if I can’t afford my DPS premiums?
If you can’t afford your DPS premiums, don’t worry — you still have a few options.
First, the premiums are automatically deducted from your CPF Ordinary Account (OA), and if there aren’t enough funds there, they’ll be deducted from your Special Account (SA).
If there are still insufficient funds, you can choose to make a cash payment to maintain your coverage.
However, if you don’t make the payment within the required timeframe, your policy will lapse, and you’ll lose coverage.
It’s important to keep an eye on your CPF balances to ensure continuous protection.
What is DPS in my CPF statements?
In your CPF statements, DPS refers to the Dependants’ Protection Scheme.
Conclusion
The Dependants’ Protection Scheme (DPS) is a simple yet essential form of term life insurance designed to protect your loved ones when life takes an unexpected turn.
It offers coverage for death, terminal illness, or total permanent disability, ensuring your family receives some financial relief during difficult times.
While it’s not compulsory, many CPF members opt to stay in the scheme due to its affordability and automatic enrolment.
If you’re unsure whether DPS is enough for your financial needs, or if you’re thinking about whether to opt out or supplement it with other forms of insurance, it’s always a good idea to get expert advice.
Not sure where to start?
Feel free to reach out to one of our trusted financial advisor partners — they’re ready to help you navigate the options for free!
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