facebookAre both DPS and Prudential insurance enough/equipped for a young person at the age of 25 whom just started working? Are there any alternative ways to pay insurance premiums via cpf? - Seedly

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Mimi J

Mimi J

Level 5ยทSenior Guest Experience Leader at Mcdonaldโ€™s Private Limited // HAN BAO BAO PTE LTD

18 Apr 2019

โˆ™

Insurance

Are both DPS and Prudential insurance enough/equipped for a young person at the age of 25 whom just started working? Are there any alternative ways to pay insurance premiums via cpf?

Are both DPS and Prudential insurance enough/equipped for a young person at the age of 25 whom just started working? Are there any alternative ways to pay insurance premiums via cpf or non cash with a better coverage in life. Please advise.

Discussion (1)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

24 Oct 2018

Level 15ยทIndependent Financial Advisor at Promiseland Independent

Hi Raimi,

The rule of thumb for how much coverage you should get is:

10 X Annual Income as Death Coverage
3-5X Annual Income as Critical Illness Coverage

DPS is a term to 60 death cover for $46,000. That's it.

Also, you need to understand what you purchased from Prudential. Is it health insurance? This is called PruShield. This covers your hospitalization and surgical bills if you were to get warded.

The only other insurance programs you can pay for with CPF, is your Home Protection Scheme, which is a mortgage reducing term plan once you purchased a HDB.

Careshield Life when you turn 30. This is a long term care plan that pays you a monthly payout for life in the event of permanent disability not allowing you to perform 3 out of 6 Activities Of Daily Living.

And lastly, CPF Life, which is a lifetime annuity that pays you a monthly sum from 65 for the rest of your life as long as you set aside a Retirement Sum.

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