Income protection
Dependants' Protection Scheme (DPS)
A national CPF term-life scheme that pays your family a lump sum if you die or become permanently disabled, with premiums from CPF.
What it protects
The shock it absorbs.
DPS is a basic, low-cost safety net run through CPF. It pays your dependants a lump sum if you pass away, become terminally ill, or suffer total permanent disability, giving the family breathing room to cover immediate expenses while they reorganise.
It is deliberately a floor, not a full plan. The payout is modest relative to most households' real needs, so it is best understood as the first layer rather than the whole answer.
How it works
In Singapore, in practice.
DPS is a term-life insurance scheme administered through CPF and underwritten by an appointed insurer (Great Eastern in recent years). Eligible CPF members aged 21 to 65 are typically enrolled automatically, and premiums are deducted from your CPF Ordinary or Special Account, so there is usually no cash outlay.
The maximum sum assured is 70,000 dollars for members up to age 60, stepping down for older members. Premiums are flat within age bands and rise as you get older, and cover ends at age 65. You can opt out, but doing so removes a cheap baseline of protection.
Because it is administered via CPF, enrolment and claims are handled through CPF rather than a private advisor.
Run the numbers
See it in your own figures.
Estimate how much cover this is meant to provide for your own household.
How much life cover you might need
A needs-based estimate: replacing income, supporting dependants, and clearing debts if you were no longer around. Indicative only.
Where it sits
Its place in your protection stack.
Protection is built in layers. This is the role Dependants' Protection Scheme (DPS) plays, and the layers above and below it.
Whole life, personal accident, and general cover, added as priorities allow.
Term life sized to your dependants and outstanding debts.
Critical illness and income protection for your working years.
Integrated Shield Plans and riders for private or as-charged hospital cover.
What every Singaporean has by default: MediShield Life and CareShield Life.
The trade-offs
What it does well, and what to watch.
Good for
- An automatic, affordable first layer of family protection
- Premiums paid from CPF rather than cash
- A stopgap while you arrange larger private cover
Watch outs
- The maximum payout (70,000 dollars under age 60) is far below most families' actual protection needs
- Cover ends at age 65, exactly when some still have liabilities
- It is a floor, not a substitute for properly sized term life and disability cover
- If you opt out, you lose a cheap baseline; re-entry may require health declarations
Who it's for
When this matters most.
- Working CPF members who want a no-effort baseline of death and TPD cover
- Young adults just starting out who have not yet bought private life insurance
- Anyone wanting a low-cost floor while they build up proper term-life cover
In the market
What this looks like.
Real Singapore examples, shown to make the type concrete. These are illustrative, not endorsements.
How it connects
Cover that works with this.
Total and Permanent Disability (TPD) Cover
Pays a lump sum if you become permanently unable to work, usually attached to a life or critical-illness policy.
Full breakdown Income protectionDisability Income Insurance
Replaces a portion of your monthly salary if illness or injury stops you from working in your own occupation.
Full breakdown Income protectionMortgage Reducing Term Assurance (Mortgage Protection)
Term life cover that shrinks alongside your home loan, clearing the outstanding mortgage if you die or become permanently disabled.
Full breakdownSources
Where the facts come from.
- DPS is a CPF-administered term-life scheme covering death, terminal illness and total permanent disability for members aged 21 to 65, with premiums payable from CPF.CPF Board, cpf.gov.sg/member/account-services/providing-for-your-loved-ones/insuring-to-protect-your-dependants
- SingaporeConfig records the DPS maximum sum assured as 70,000 dollars for members under 60 and 55,000 dollars for ages 60 to 65.SingaporeConfig insuranceBenchmarks.dpsMaxUnder60 (70,000) / dpsMax60to65 (55,000); functions/src/seeders/countryConfig.ts
See where Dependants' Protection Scheme (DPS) fits your own plan.
This is educational, not advice. When you want a detailed look at whether this cover fits your situation, a licensed adviser will map it to your income, CPF, and goals.