Wednesday 26 April 2017

Cancel Dependant's Protection Scheme

So embarrassing!

I should have cancelled my CPF Dependant's Protection Scheme when I came back at age 44.

I completely forgotten about it...

Talk about don't sweat the small stuffs!

I did cancel my Term insurance when I came back.

When the 20 years break-even for my remaining Wholelife policy was hit 2 years back, I cancelled it too.

I remembered because the annual premiums were in the thousands.

Yes, this proves the annual premiums for this CPF DPS policy were dirt cheap.

Highly recommended to get it when you hit age 21.

The annual premium for those age 34 and below is just $36 per annum! Cheap right?

$46K is not a lot, but when you have little or no savings in our 20s, at least its something for our parents to tide them over in the event we have to depart "abruptly".

But once we've reached our 40s, I think this CPF DPS policy would have out-lived its usefulness. Unless you tell me, in your 40s, you still don't have $46K to your name...

Most of us would have forgotten about it - just like me - as the annual premiums were frequently paid out from our annual CPF interests received.

However, this year different for me.

At age 50 and above, the annual premium will have a "big" jump in percentages. Although in dollar terms, they're still pretty modest.

If you want to keep it till age 60, also can.

It won't cost you an arm or leg - especially for those who like to voluntarily top-up your CPF - the increased CPF interests will be more than enough to offset the increased in annual premiums for DPS due to your higher age.

However, I prefer to take out my CPF; not put more in.

Just went down to NTUC Income as Bras Basah road to sign the opt-out form.

Then took the opportunity to say hello to Kwan Im Ma at Waterloo Street.

Wow! So crowded on a Wednesday afternoon?

Oh! Today is 初一!




  1. Hi SMOL,

    You made the right decision in opting of DPS. In my view, the sum assured does not justify the paid premium. There are other cheap alternative such as Aviva NS Man Term Insurance which remains super low before the age of 65.


    1. Ben,

      For age 34 and below, its very cheap!

      Anyway, it good to review our Life insurance needs every 5 years. I've outgrown them...

      Paying for something I don't need - no matter how cheap - is just dumb :)

  2. SMOL,

    Totally agree with you. It's better to take charge of own finance and insurance oneslf.


    1. One must differentiate clearly between medical insurance and insurance to protect human asset after point X

    2. 1) Ben,


      2) CW,

      I would like to think we have been quite crystal in our discussions so far ;)

      Its all about life insurances; I can be precise when I want to be :)


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