Dependent Protection Scheme

In May 2017, I terminated the Dependent Protection Scheme.  Details on the Scheme are as follows:

https://www.cpf.gov.sg/Members/Schemes/schemes/other-matters/dependants-protection-scheme

The reasons why I terminated the scheme are as follows:

  • The assured sum is not much. However, when one has little or no savings in his/her 20s, this is something for one’s parents to tide them over in the event one has to depart “abruptly”.
  • When one reach the age of 40s. the scheme would have outlived its usefulness. One is likely to have the assured sum in his/her name if he/she is prudent and adopts dividend growth investment strategy.
  • Though the annual premiums are frequently paid out from the annual CPF interest received, the CPF interest is still the money which can be considered as the retirement fund.
  • Based on my perspective, the assured sum does not justify the paid premium. There are other cheaper alternative such as Aviva NS Man Term Insurance which remains extreme low before the age of 65.

WTK

Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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