What is Dependent Protection Scheme (DPS)
June 12th, 2008 by ALVIN SOONG
Dependants’ Protection Scheme (DPS) is an optional term insurance plan that covers Central Provident Fund (CPF) members for a maximum sum of $46,000 up to age 60.
Its objective is to provide CPF members and/or their families with some money to tide them over for the first few years after the insured member dies or is permanently disabled.
The coverage is worldwide.
The scheme was started by the Government in 1989 and is covered under the CPF Act. DPS is automatically extended to CPF members who are Singapore citizens or permanent residents, between the ages of 16 and 59.
The aim is to insure members as early as possible, when they start working and make their first CPF contributions as they are more likely to be healthy and insurable at that time. The appointed insurers are Great Eastern and NTUC Income.
Make sure you have sufficient funds in your CPF account to cover the premiums as the cover will lapse if you don’t. This is because the annual premium, which is based on age, regardless of gender, is deducted from your CPF Ordinary and/or Special Account. Alternatively, you can top up your CPF account or pay by cash or cheque.
Summarised from Sunday Straits Times 08 June 2008
Does that mean if i do not die before age 60, basically I am paying for nothing? I have no dependants. Should I continue? Please advise. Thanks
Also, what abouut income shield Plan c & MB? So messy.
mr Zhang
zhangsky@singmail.com
Hi Mr Zhang
DPS Scheme, Eldershield and Incomeshield (integrated with Medishield) are 3 different government schemes using CPF that are often mistaken with one another.
1) Although you don’t have dependents, DPS scheme can give you a sum of money for expenses in cases of disability. Most of the times, people are disabled and may not even have the ability to work for income. At least this some of money can come in handy for them
2) Incomeshield Plan C is now known as basic Medishield whereas MB is now known as Incomeshield MB plan. These covers for hospitalisation bills only.
For Basic Medishield it is one of standard coverage all Singaporeans would have, esp for C wards
For those under Incomeshield MB plan, more benefits are covered and claimable amount is higher. However this is still insufficient as there is a capped limit for the claims. Advisable step to do is to upgrade your current incomeshield plan to an enhanced incomeshield plan with your financial planner for maximum hospital coverage