What is Revocable Nomination for the Dependants' Protection scheme (DPS)? Should I ignore it?

Hi anon,

A revocable nomination form allows you nominate the people who will receive the proceeds of the payout. You can specify the percentage of the payout they will get (in the event that you wish to nominate more than one person), but this must add up to 100%.

The nomination you make is 'revocable' (can be revoked) i.e. you can change the people who are nominated at any time. Nomination allows the payouts to be paid by the insurer to the nominees as long as the relevant paperwork is presented (see https://www.greateasternlife.com/sg/en/personal... for a list of requirements) and there will be no need to go through probate (which can take months). A nomination is also a way to ensure that the people whom you wish to get the proceeds get it, in the sense that the insurer will only pay out to the nominee and no one else can claim the money.

Given the fact that making a nomination is a quick and painless process (maybe 15 minutes of your time) as opposed to the possibility of administrative hassles/disputes from other family members in the event of claim, etc, I highly recommend making a nomination not just for DPS, but any other policy you may have (as long as the policy has a death payout). Also, making a nomination for your CPF monies is equally important, if you have not done so, please consider settling it as well.

Hi Anon,

This is a form for you to nominate beneficiaries for the sum assured ($70,000) under DPS. This coverage drops to $55,000 from 60 to 65.

Should death occur before the age of 65, your beneficiaries will receive this payout without the need for a probate process (i.e. no need to apply for administration in court). You can also revoke and amend this nomination should your family situations change (maybe you got married and would like to change the nominees from your parents/siblings to your spouse/children). Hence the name "revocable nomination"

If you choose to ignore the nomination form, your DPS payouts will be distributed via the Intestate Succession Act, coupled with a troublesome and potentially costly administration process for your loved ones.

I would certainly recommend doing up this nomination and mailing it back as the benefits far outweigh the cons.