Most Central Provident Fund (CPF) members under the Dependants' Protection Scheme (DPS) will enjoy lower premiums for a higher sum assured of $70,000 from April 1 next year. Currently, the sum assured is $46,000.
Lower yearly premiums include a reduction of $51 for members aged 45 to 49 and a decrease of $40 for members aged between 50 and 54.
However, members aged 55 to 59 will pay a higher yearly premium of $298 as compared with $260.
Asked about the increase, a CPF Board spokesman explained that the premium rate per thousand-dollar-sum assured for members aged between 55 and 59 had dropped by 25 per cent.
This was the most competitive tender offered by insurers, which determined that the premium for this age group would be increased as the sum assured had risen significantly.
The maximum age of DPS coverage will also be increased to include members aged 60 to 65, but at a lower sum assured of $55,000. Coverage will be capped at age 65.
Currently, DPS coverage is capped at age 60.
DPS is a term-life insurance scheme that gives insured members and their families a sum of money to get through the first few years after the insured members die, or suffer from terminal illness or total permanent disability.
It is extended automatically to CPF members who are working Singapore citizens or permanent residents between the ages of 21 and 60 when they make their first CPF working contribution.
There were about 1.9 million CPF members with an existing DPS cover as at the end of last year.
Members aged between 60 and 65 receive a lower sum assured because they are likely to have accumulated sufficient CPF savings or other savings that can be bequeathed to their dependants to help them tide over a reasonable period of time in the event of a claim, a CPF Board statement said.
They are also more likely to have fewer dependants who rely on their income, he added.
On average, there is a reduction of about 47 per cent for the premium per thousand-dollar-sum assured.
These enhancements to DPS are part of a review to better meet the needs of CPF members.
Great Eastern Life has been awarded a five-year contract to administer the DPS starting from April 1 next year.
Members aged 60 and above but below 65 years, whose DPS covers have ceased or will cease before April 1 next year, can rejoin DPS by applying directly with Great Eastern Life when the new contract comes into effect.
They will pay $298 for an assured sum of $55,000.