Oral Answer by Mr Tan Chuan-Jin, Acting Minister for Manpower & Senior Minister of State, National Development, to Parliamentary Question on Extension of Dependants' Protection Scheme Beyond 60 Years of Age

Mr Gan Thiam Poh: To ask the Acting Minister for Manpower whether the present age coverage of the Dependants' Protection Scheme can be reviewed and extended beyond 60 years old in view of the expected rise in Singaporeans' life expectancy.

Mr Tan Chuan-Jin:

The Dependants’ Protection Scheme (DPS) is a term insurance scheme that mitigates the impact of a loss of income to a family, in the event of an insured member’s permanent incapacity or death. It provides dependants with a sum of money to tide over the initial difficult period.

The need for DPS is expected to decline as a breadwinner approaches his retirement age. His children are likely to be already working or are less financially dependent. In the event of any untimely death, he would also have built up his own savings, including CPF savings, which could support his remaining dependants.

DPS premiums are kept low and affordable to help CPF members stay covered on the scheme. Extending DPS beyond age 60 would mean substantially higher premiums due to higher mortality rates. The additional premiums required to purchase a further DPS cover would be better reserved for the member’s retirement instead. Setting the DPS age limit at 60 strikes a balance between the need for insurance protection for a member’s dependants and his need for adequate retirement savings.

Nonetheless, for those who wish to continue to have DPS coverage after age 60, we are prepared to review our current practice and extend the coverage upon request, though members must understand that this is expected to come with much higher premiums. We will study this with CPF Board and make available the details when the review is completed. While this is being reviewed, those who wish to purchase life insurance beyond age 60 can do so from private insurers.