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Most members of the Central Provident Fund (CPF) under the Dependent Protection Scheme (DPS) will enjoy lower premiums for a higher insured sum of $ 70,000 beginning April 1 of next year. Currently, the sum insured is $ 46,000.
The lowest annual premiums include a reduction of $ 51 for members ages 45-49 and a reduction of $ 40 for members ages 50-54.
However, members ages 55 to 59 will pay a higher annual premium of $ 298 compared to $ 260.
When asked about the increase, a spokesperson for the CPF Board explained that the insured $ 1,000 premium rate for members ages 55-59 had been reduced by 25 percent.
This was the most competitive tender offered by insurers, which determined that the premium for this age group would increase since the sum insured had increased significantly.
The maximum age of DPS coverage will also be increased to include members ages 60-65, but for a less insured sum of $ 55,000. Coverage will be limited to age 65.
Currently, DPS coverage is limited to age 60.
DPS is a term life insurance plan that gives insured members and their families a sum of money to get through the first few years after the insured dies or is terminally ill or permanently disabled.
It is automatically extended to CPF members who are working Singapore citizens or permanent residents between the ages of 21 and 60 when they make their first work contribution to CPF.
There were about 1.9 million CPF members with existing DPS coverage at the end of last year.
Members ages 60-65 receive a lower insured sum because they likely have accumulated enough CPF savings or other savings that can be bequeathed to their dependents to help them cope for a reasonable period of time in the event of a claim , a CPF statement from the board said.
They are also more likely to have fewer dependents who depend on their income, he added.
On average, there is a reduction of about 47 percent for the $ 1,000 insured premium.
These enhancements to DPS are part of an overhaul to better meet the needs of CPF members.
Great Eastern Life has been awarded a five-year contract to administer DPS beginning April 1 of next year.
Members age 60 and older but younger than 65, whose DPS coverage has ceased or will cease before April 1 of the next year, may rejoin DPS by applying directly to Great Eastern Life when the new contract takes effect.
They will pay $ 298 for a guaranteed sum of $ 55,000.
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