More coverage at lower premiums for CPF Dependants' Protection Scheme members but those above 55 have to pay more

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More coverage at lower premiums for CPF Dependants' Protection Scheme members but those above 55 have to pay more
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SINGAPORE - Most Central Provident Fund (CPF) members under the Dependants' Protection Scheme (DPS) will enjoy lower premiums for a higher sum assured of $70,000 from April 1, 2021.. Read more at straitstimes.com.

SINGAPORE - Most Central Provident Fund members under the Dependants' Protection Scheme will enjoy lower premiums for a higher sum assured of $70,000 from April 1, 2021.Lower yearly premiums include a reduction of $51 for members aged 45 to 49 and a decrease of $40 for members aged between 50 and 54.The maximum age of DPS coverage will also be increased to include members aged 60 to 65, but at a lower sum assured of $55,000. Coverage will be capped at age 65.

It is now extended automatically to CPF members who are working Singapore citizens or permanent residents between the ages of 21 and 60 when they make their first CPF working contribution. Group director at the CPF Board Peh Er Yan said:"DPS is meant to protect the member and his dependants during his working years. The higher sum assured of $70,000, which is approximately three years of salary for a lower-income member, will provide greater financial support for the insured members and their family members in the event of a claim. This higher sum assured also comes with premiums which are more attractive than the current ones.

On average, there is a reduction of about 47 per cent for the premium per thousand-dollar sum assured.Great Eastern Life has been awarded a five-year contract to administer the DPS starting from April 1, 2021. Members aged 60 and above but below 65 years, whose DPS covers have ceased or will cease before April 1, 2021, can rejoin DPS by applying directly with Great Eastern Life when the new contract comes into effect.

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