facebookWhat are some of the pros and cons you consider if to choose CPF life standard plan versus CPF life basic plan? Any sites or youtube videos that you take reference to? Thanks! - Seedly

Advertisement

Anonymous

Edited 06 Feb 2022

CPF

What are some of the pros and cons you consider if to choose CPF life standard plan versus CPF life basic plan? Any sites or youtube videos that you take reference to? Thanks!

I dont quite understand the part about Basic plan you leave a larger legacy for your loved ones in the event of passing on, versus Standard plan will result in lower request (wouldnt remaining CPF life premium balance in standard plan still be returned to my loved ones if I pass on?).

Many thanks if you could share some advice!

Discussion (2)

What are your thoughts?

Learn how to style your text

Tan Choong Hwee

15 Feb 2022

Solutions Specialist at Providend

Two factors that let Basic Plan leaving higher legacy than Standard Plan:

  1. As @JK mentioned, monthly payout is lesser for Basic than Standard, therefore the premium balance for Basic is reducing at smaller amount as the years go.
  2. Only 1020% of RA goes to CPF LIFE as premium for Basic. The remaining 8090% stays in RA and continues to earn 4% base interests, extra 1% interests for 1st $60k, and another 1% interests for 1st $30k. Only when RA is depleted then would CPF LIFE premium be drawn down. The total legacy before RA depleted would be larger due to RA interests.

JK

15 Feb 2022

Salaryman at Random Company

You are right in the sense that CPF LIFE premium balance will be left for your loved ones in the event of passing on.

In the case of Basic Plan, as you draw out lesser amount per month, the premium balance will be more than Standard Plan's at any given time (unless both balance reaches zero). That is what they meant by leaving a larger legacy behind.

Write your thoughts

Advertisement