Are You Sure You Are Still Covered Under DPS?
It was two days ago that I received an email comment on one of my earlier posts on the topic of Dependants’ Protection Scheme (DPS) and in it I was asked to provide some advice on why a passed-on family member may not be covered by DPS when it’s obvious that there’s enough CPF money in the account…. and there’s been so much confusion/unhappiness that the family is wondering if they are still able to make claims from it and if so… how can they do so…
What Is Dependants’ Protection Scheme Or DPS?
(As quoted from the CPF Board website) The Dependants’ Protection Scheme (DPS) is an affordable term insurance scheme that provides insured members and their families with some money to get through the first few years should the insured members become permanently incapacitated or pass away.
And for most of its members, they use the money in their CPF-OA account to service the yearly premium. The deduction is usually set to automatic but there’s the usual yearly reminder that the annual premium is due and pending for deduction at a certain date. Insured members are also reminded to make sure that there’s enough money left in the CPF-OA for premium deductions…
If there’s really the case whereby the insured member has no enough money in the CPF-OA account, there will be a letter that’s being sent to notify about the lack of funds and also the alternative to top up the difference with cash at one of the designated Insurance Companies.
Should the insured member forget to make the payment after the grace period, the DPS plan will usually be terminated and an official letter will normally be mailed out to notify as well…
