It stands for Dependants' Protection Scheme (DPS). It 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.
Why is it important?
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.
