Re: CPF LIFE exposed - what you really need to know
That's true.
But CPF Life is a double whammy because if you die young, your family gets very little or nothing.
Minimum is different...whatever is in your account is returned to your family.
My mum is in her early 60s and the CPF has been writing to her to encourage her to opt from Minimum Sum to CFP Life.
In CPF Life, whatever amount that has not been used to pay the annuity disbursements will be returned to your beneficiaries. So if you die at 67 before you get your first handout, the entire sum is given to your beneficiary.
But note that the proceeds will be deposited into your beneficiary's CPF account if you fail to use to correct form to indicate your preference. This is obviously done to con some people into making the dreadful mistake. I'm sure more than a few folks out there have already used the wrong form and they did not realize it. I believe that when you make a nomination, they deliberate use the wrong form as the default form, so those not paying attention will walk into the trap. Imagine those not really literate show up at CPF board to make a nomination, and the counter staff just keep quiet and let them do it.
Imagine the shock their beneficiary will get when he finds out that his parents CPF money is being deposited into his OA. Then we can ask him who he voted for.
