What is the DPS (Dependents' Protection Scheme)?
The Dependents' Protection Scheme, also known as DPS, is a term insurance that offers basic coverage for insured members. This will allow the dependents of insured individuals to receive some money to tide through the initial period should the insured pass away, be terminally ill or have Total Permanent Disability (TPD).
Under the current DPS scheme, members are insured up to the age of 65. Do note that coverage amount will decrease after age 60.
Age |
Maximum amount covered by DPS |
Age 16 to 60 |
$70,000 |
Age 61 to 65 |
$55,000 |
Who is the DPS (Dependents' Protection Scheme) for?
DPS coverage is extended to Singaporeans and Permanent Residents between the ages of 21 and 65. This will be automatically given upon their first CPF working contribution. Singaporeans and Permanent Residents who are above the age of 16 but was not automatically given DPS cover can apply to Great Eastern Life to request to join DPS.
DPS coverage is not compulsory and insured members can terminate their DPS cover should they wish to do so. Premiums for your DPS can be paid using CPF Ordinary and/or Special Account.
Age as of premium payment date |
Yearly premiums |
Coverage for |
Age 34 and below |
$18 |
$70,000 |
Age 35 to 39 |
$30 |
$70,000 |
Age 40 to 44 |
$50 |
$70,000 |
Age 45 to 49 |
$93 |
$70,000 |
Age 50 to 54 |
$188 |
$70,000 |
Age 55 to 59 |
$298 |
$70,000 |
Age 60 to 64 |
$298 |
$55,000 |
I used to have DPS by NTUC Income. What happens to my coverage?
From 1 April 2021, Great Eastern Life is the sole administrator of DPS. If you have DPS cover from NTUC Income, this will automatically be transferred to Great Eastern Life. Great Eastern Life is required to take over all obligations of DPS coverage issued by NTUC Income if you are already insured under DPS with NTUC Income prior to 1 April 2021. This means that you need not worry about medical conditions that developed during your DPS coverage with NTUC Income.
(See "When is a renewable term insurance the better option?")
Is the coverage from DPS (Dependents’ Protection Scheme) enough?
As of 1 April 2021, DPS will provide up to $70,000 coverage for death, terminal illness and TPD. While this is $24,000 more than the previous coverage, we feel that this is still not enough to adequately address your protection gap. Instead, your DPS should be seen as basic life insurance coverage and supplemented with alternatives such as a term life plan.
How will term life plans supplement my DPS (Dependents' Protection Scheme) cover?
Term plans offer a similar scope of coverage to DPS, covering against death, terminal illness and total permanent disability (TPD). With affordable premiums, term plans are seen as a low-cost option for life insurance and are typically used to cover a temporary protection gap. A protection gap refers to the difference between the coverage amount you need and the coverage you already have.
In this article, we share the three reasons to supplement your DPS cover with a term plan.
#1 Financial security for your dependents
With DPS providing a maximum coverage of $70,000, your DPS plan is only meant to serve as basic life insurance coverage. If you have dependents who are financially reliant on you, this $70,000 pay-out will not be enough.
As opposed to the $70,000 offered by DPS, term plans have the option for a higher coverage amount which in turn gives your dependents a higher pay-out. With this higher pay-out, your dependents will be able to maintain their current standard of living even after you are gone. This will allow them financial security with them not having constantly worry about their finances. When looking at coverage amount to get, you may also want to account for your children’s future education expenses. This will allow you to get covered for an amount that will give your children enough to pay for their future education in the event that you meet with a mishap.
(See "How much should I be spending on insurance for my child?")
#2 Flexibility
DPS only offers one plan with a fixed coverage of $70,000 sum assured provided up to the age of 65. Term plans on the other hand offers greater flexibility for your insurance coverage as compared to DPS. With term plans, you are given the option to choose your sum assured, coverage period, and payment options. This allows you flexibility to better tailor a plan to suit your needs. For example, if you require a coverage for $500,000 and already have a DPS that covers for $70,000, you may just cover the remaining protection gap ($500,000 - $70,000 = $430,000) with a term insurance plan.
Some term plans may also offer the option to convert to other life insurance plans. This conversion option allows the insured to convert his/her term plan to a whole life or endowment plan without the need to undergo any underwriting or health check-ups.
DPS |
Term plans |
|
Choice of coverage amount? |
No, fixed at $70,000 (up to age 60) or $55,000 (from age 61 to 65). |
Yes, you can choose a coverage amount to suit your needs. |
Choice of coverage duration? |
No, coverage is offered to a maximum of age 65. However, insured may their DPS cover by contacting Great Eastern Life. |
Yes, you can choose their preferred of a policy term and coverage period, available up to the age of 100. |
Option to choose type of plan? |
No, only one plan available. |
Yes, you can choose from level and renewable term plans. |
Option to convert to other plans (e.g. whole life or endowment)? |
No. |
Yes, some term plans has the option to convert to an endowment or whole life plan. |
Payment method |
Payment by CPF. Yearly premium payments only. |
Payment by cash. You can choose to pay premiums on a monthly, quarterly, half-yearly or yearly basis. |
(See "Fixed or Renewable – Which is the better term insurance?")
#3 Premiums of DPS rises drastically after age 50
While the premiums of DPS is affordable, these premiums rises drastically after the age of 50. As a result, DPS may not necessarily be cheaper than term with the annual premiums being comparable to or even more expensive than term plans.
DPS (Dependent Protection Scheme) |
Term plans (Yearly Renewable and Convertible) |
|||
Age as of premium payment date |
Yearly premiums |
Coverage for |
Yearly premiums* |
Coverage for |
Age 20 |
$18 |
$70,000 |
$44.50 |
$100,000 |
Age 30 |
$18 |
$70,000 |
$47.60 |
$100,000 |
Age 35 |
$30 |
$70,000 |
$53.80 |
$100,000 |
Age 40 |
$50 |
$70,000 |
$76.90 |
$100,000 |
Age 45 |
$93 |
$70,000 |
$109 |
$100,000 |
Age 50 |
$188 |
$70,000 |
$154.50 |
$100,000 |
Age 55 |
$298 |
$70,000 |
$197.30 |
$100,000 |
Age 60 |
$298 |
$55,000 |
$267.80 |
$100,000 |
*Profile: non-smoker, male. Accurate as of 14 September 2021.
As shown in the table above, premiums for a $100,000 term plan will only cost you $154.50 at age 50. Not only is this cheaper than the DPS premiums for age 50 ($188), but the coverage offered by the term plan is also $30,000 more than the DPS cover. This means that you could potentially be paying less premiums for a higher coverage with term insurance plans.
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