Should I opt out for NTUC income DPS? - Seedly



Asked by Anonymous

Asked on 09 Jul 2019

Should I opt out for NTUC income DPS?

Currently studying but work part time sometimes. Is it stackable with other term life insurance once I start working full time?


Answers (3)

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Yes, you can claim it with other life Insurance.

I will definitely not opt out if I do not have adequate personal life insurance coverage. So if you don’t have enough, keep it.

You can use a general guide to measure your coverage adequacy as what Hariz has shared base on income or expenses. Alternatively you can, “X amount of coverage” multiply by 6% = Current annual income. X will be the amount you need then.

As for me, I chose to keep it even though I have adequate coverage and since I am below 34, I am only paying 36 dollars a year for 46,000 coverage. The absolute interests I am losing compared to the benefits I am getting are minute.


Milly Fbk
Milly Fbk
Level 3. Wonderkid
Updated on 12 Jul 2019

Hi, You should cancel your DPS as you are using your CPF OA to pay for it. Why?

You are losing at least 2.5% interest on the CPF OA, that can be used for better things like your future house. You should take a Term Direct Purchase Insurance ("DPI") of the same Sum Assured to cover for the shortfall, since you going to cancel the DPS. Check here: Why?

You will be using cash, which I assume is not earning you more then 2.5% returns. Anyway Term DPI are super cheap, assuming you are 20 year old male non-smoker, you are going to pay only $45 annually for $60K Sum Assured, instead of the increasing premiums like DPS ($36 to $260).



If you mean, can you claim it with other insurance policies, yes you can.

I opted out of DPS because we use OA to pay for it, and my OA is losing 3.5% interest on the monies used to pay the premiums. I already have my private insurance policies in place so I feel I can save some money there and grow that premiums used instead.

Only consider this after you have adequate coverage in the event of death first. A good figure to have is either 10 X Annual Income or 25 X Annual Expenses as coverage paid out in the event of death, whichever higher.


Loh Tat Tian
Loh Tat Tian

13 Sep 2019

Wait, I thought you say your OA and SA is kosong. Anyway, the decision depends on whether the cash can generate more than 2.5% interest.
Hariz Arthur Maloy
Hariz Arthur Maloy

13 Sep 2019

Not absolutely 0. I had a full time job for a year. Got a small small amount inside. Less than 20k and it's earning 3.5% interest.