The Dependent Protection Scheme (DPS) is a vital social security program in Singapore that offers essential financial support to families facing unforeseen circumstances.
This term life insurance plan, automatically enrolled for eligible individuals, provides a lump sum payout in the event of death, terminal illness, or total permanent disability. Let’s delve deeper into the scheme’s details, eligibility criteria, payment information, and the importance of this safety net.
Understanding the Dependent Protection Scheme (DPS)
The DPS serves as a cornerstone of Singapore’s social security framework, managed entirely by Great Eastern Life. Individuals contributing to the Central Provident Fund (CPF), a mandatory savings scheme for retirement, are automatically enrolled in the DPS. The CPF acts as the payment source for DPS premiums, ensuring seamless coverage without additional financial burden.
Benefits of DPS:
- Automatic Enrollment: Eligible CPF contributors are automatically enrolled, eliminating the need for separate applications.
- Convenience: Premiums are deducted directly from your CPF Ordinary Account, ensuring timely payments without any hassle.
- Peace of Mind: The scheme offers financial security to your dependents in the event of your passing, terminal illness, or permanent disability.
Eligibility for the Dependent Protection Scheme
The Dependent Protection Scheme offers coverage to a specific demographic within Singapore. Here’s a breakdown of the eligibility criteria:
- Citizenship: You must be a Singaporean citizen or a Permanent Resident (PR) residing in Singapore.
- Age: The scheme covers individuals between 21 and 65 years of age.
- CPF Contribution: You must be a valid CPF contributor with active contributions to the scheme.
- Medical Certification: For claims related to terminal illness or permanent disability, a medical certificate verifying the condition is mandatory.
Terminal Illness vs. Permanent Disability:
- Terminal Illness: This refers to a medical condition deemed incurable and likely to lead to the individual’s death.
- Permanent Disability: This is a condition that prevents an individual from engaging in gainful employment and is expected to be long-term or permanent.
Claiming the Dependent Protection Scheme Payout
The payout from the Dependent Protection Scheme is disbursed to the designated beneficiary upon a qualifying claim. Here’s what you need to know:
Payment Methods:
- CPF: This is the preferred mode of receiving the payout, directly credited to your CPF account.
- GIRO: The payout can be deposited into your nominated bank account via GIRO interbank transfer.
- Great Eastern Life App: For eligible beneficiaries with the Great Eastern Life app, the payout can be claimed through the app itself.
- Cash or Paper Check: In specific situations, cash or paper check payouts might be an option.
Claiming Process:
To claim the DPS payout, the beneficiary must submit the necessary paperwork, including the death certificate or a medical certificate (for terminal illness or disability claims). This can be done through Great Eastern Life’s online portal or by visiting a customer service center.
Opting Out of the Scheme:
While automatic enrollment offers convenience, individuals have the option to opt out of the scheme. However, this decision should be made carefully considering the financial protection it provides. Re-enrolling later requires a new health declaration, and coverage will only be offered if you are deemed medically suitable.
Dependent Protection Scheme Amount (2024)
The payout amount under the Dependent Protection Scheme varies depending on your age at the time of the claim:
- Ages 21 to 60: A lump sum of $70,000 is paid to the beneficiary.
- Ages 61 to 65: The payout amount is $55,000.
It’s crucial to note that coverage under the DPS ceases upon reaching 65 years of age. Therefore, if you haven’t opted out before turning 65, ensure you claim any outstanding benefits before this deadline.
Enrolling in the Dependent Protection Scheme (Optional)
Although automatic enrollment covers most CPF contributors, some individuals might not be included. Here’s how you can manually enroll in the scheme:
- Download the Proposal Form: Visit the official Great Eastern Life website and download the DPS enrollment proposal form.
- Complete the Form: Carefully fill out the form with all the required information.
- Submit the Form: Submit the completed form to the designated address mentioned on the application or through your personal financial agent.
- Customer Service Center: Alternatively, you can contact the Great Eastern Life customer service center for assistance with the application process.