Should I cancel my CPF Dependant Protection Scheme (DPS) as I already have the Aviva Group Term Life (GTL) for MINDEF and MHA? - Seedly
 

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Asked by Zen Rogue Xuan

Asked on 30 Jul 2019

Should I cancel my CPF Dependant Protection Scheme (DPS) as I already have the Aviva Group Term Life (GTL) for MINDEF and MHA?

I have done my calculations. The amount I am paying over the entire duration for CPF DPS, which gives me coverage of $46k, if channelled over into Aviva's GTL, will give me coverage of almost x5 times more at $220k. Also, CPF DPS only covers up till the age of 59, but Aviva's GTL stretches to age 65. Should I make this switch? Anybody with prior experiences to share?

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My personal take is that this is a super affordable insurance policy worth keeping. Moreover, this is a rare breed of insurance that is payable via your CPF. On its own, it is not sufficient and your Group Term policy serves as another layer of protection. You may wish to look into your personal term/whole life plans as well.

If you haven't already seen these articles, you can read up more about it in these links:

https://blog.seedly.sg/dependants-protection-scheme-dps-singapore/

https://dollarsandsense.sg/dependants-protection-scheme-heres-one-insurance-policy-didnt-know-already/

Hope this helps!

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Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 8. Wizard
Answered on 01 Aug 2019

CPF DPS is reasonably priced. Keep it.

Best part: you can use CPF to pay for the premium. (aviva's group term only accept cash)

The bad thing is we cannot buy more even if we want to.

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The premiums paid for the coverage is not worth once you hit age 45. You may wish to drop it and get private insurance as term premiums have progressively decreased, especially for death coverage.

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