Buying an ILP with CPF or SRS: eligibility, fee caps, risk classification and tax treatment

Buying an investment-linked policy (ILP) with Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) money layers two sets of rules onto one policy. The CPF Investment Scheme (CPFIS) sets out who can invest, which sub-funds are eligible and what the fee caps are; the SRS sets out what kind of insurance can be bought and how withdrawals are taxed. Both accept only single-premium ILPs, and neither changes the basic nature of an ILP: no guaranteed cash value, and unit values that can go down as well as up. All figures are dated and subject to the latest CPF Board, MOF and IRAS pages.

How the three funding routes differ

When an ILP is bought with cash, CPF or SRS money, the difference lies not in the policy terms but in where the money comes from, which rules apply to it and how it comes back to you.

CPFIS eligibility and account opening

The CPFIS eligibility conditions come from the CPF Board page (updated 27 August 2026): aged 18 or above; not an undischarged bankrupt; and an Ordinary Account (OA) balance above S$20,000 and/or a Special Account (SA) balance above S$40,000, with only the amount above the threshold available for investment. From 1 October 2018, new investors must first complete the Self-Awareness Questionnaire (SAQ); the result does not prevent investing, but serves as a prompt about whether investing on your own is suitable.

Members aged 55 and above: from January 2025, the Special Account of members aged 55 and above has been closed, with SA savings transferred to the Retirement Account (RA, up to the Full Retirement Sum) and the remainder to the OA, so CPFIS-SA no longer applies to this age group. Existing CPFIS-SA investments can be held until sold or matured, with the proceeds going to the RA (up to the Full Retirement Sum) and the remainder to the OA (CPF Board, 2 July 2025); the exact treatment is as set by the CPF Board.

In practice, investing with the OA requires first opening a CPF Investment Account with a CPFIS agent bank (one of DBS, OCBC and UOB) and then applying to the insurer; investing with the SA requires no investment account, and you apply to the insurer directly. As at 27 October 2025, eight insurers were included under the CPFIS (CPF Board Annex C); refer to the CPF website for the current list.

ILPs under the CPFIS: OA/SA, the single-premium rule and risk classification

The CPF Board's product list (September 2025 edition) shows ILPs as available for both the OA and the SA, with a note for the SA that "higher-risk ILPs are not included". Within any one insurer's sub-fund range, only some sub-funds are included under the CPFIS, and of those only the lower-risk ones can be bought with the SA; for any particular sub-fund, check the list on the CPF website.

The LIA guide (March 2026) adds two points: since January 2001 the CPFIS has allowed only single-premium policies, while regular-premium policies already paid with CPF before then may continue; and the CPF assigns a risk classification to each included sub-fund, which determines whether it can be bought with the SA and which expense ratio cap applies. The CPF Board states that it does not endorse any product provider or product, and "included under the CPFIS" is neither a recommendation nor a guarantee of capital.

CPFIS fee caps

The CPFIS sets public caps on ILP charges (CPF Board Annex D, March 2022). They apply only to sub-funds included under the CPFIS; for ILPs bought with cash, refer to the Product Summary.

The expense ratio is a fund-level charge that excludes insurance charges, transaction costs and performance fees, so the CPFIS caps do not reach policy-level insurance charges and policy fees; Annex D also notes that its figures are estimates only and that all charges should be checked with the agent bank and product provider.

Opportunity cost: work out what CPF money gives up first

Interest rates published by the CPF Board (updated 15 September 2026): from 1 October 2026 to 31 December 2026, the OA earns 2.5% a year and the SA, MA and RA earn 4% a year; the OA has a legislated floor of 2.5% and is reviewed quarterly, and the 4% floor for the SA, MA and RA has been extended to 31 December 2027; extra interest is paid on the first S$60,000 of combined balances (with up to S$20,000 from the OA). The CPF Board's own words on the product list are that if you are unsure about investing on your own, you may consider leaving your money in your CPF accounts to earn interest.

Putting OA money into an ILP means giving up a certain 2.5% interest in exchange for an uncertain net return after charges. One way to check: add up the expense ratio, policy fee and insurance charges, work out what gross return the sub-fund would need to match the OA's 2.5% or the SA's 4%, and then judge whether you could bear the loss of capital if it falls short. The LIA guide's reference points are a minimum suggested holding period of more than 10 years for equity sub-funds and more than 4 years for bond and balanced sub-funds. This is a framework only and not personal advice.

SRS: which ILPs can be bought, and the limit on cover

The Supplementary Retirement Scheme (SRS) is administered by MOF, with accounts held at the three SRS operator banks. The MOF page (updated 15 April 2026) describes the investment range as shares, unit trusts, bonds, fixed deposits and so on, as well as "certain life insurance products, subject to restrictions". The operator banks' public materials state that single-premium insurance products can be bought with SRS funds and that life cover is capped at a multiple of the single premium (DBS, 27 August 2020); the exact multiple and any restrictions on use for critical illness or medical cover are subject to the current terms of MOF and the operator banks. This site has not verified MOF's primary text, so no specific multiple is given here.

What this means for ILPs: SRS money can buy single-premium ILPs with a limited cover multiple, so these are usually investment-oriented rather than protection-oriented structures, with very thin protection. SRS contribution caps, tax relief and the taxation of withdrawals are general rules: withdrawals after the statutory retirement age are generally only 50% taxable, while early withdrawals carry a penalty (IRAS, 3 September 2026); the full rules are on the sister site saving.com.sg.

Tax treatment: relief and CRS

Life Insurance Relief: the IRAS page (10 August 2026) lists investment-linked policies where the investment element is the primary consideration among premiums that do not qualify, so premiums on investment-oriented ILPs generally cannot be claimed for this relief. Policies with a heavier protection element also face conditions: CPF contributions in the previous year of less than S$5,000, a life policy on yourself or your spouse, and so on, with the relief capped (from Year of Assessment 2026, wives paying premiums on their husbands' policies may also claim); refer to the IRAS page.

CRS: Singapore has exchanged financial account information under the Common Reporting Standard since September 2018 (IRAS, 9 September 2026); insurers issuing cash value insurance contracts are reporting institutions, and what they report includes the year-end cash value or surrender value. If your country of tax residence (such as mainland China or Hong Kong) is a CRS exchange partner of Singapore, your policy's cash value or surrender value may be reported and exchanged (applicable to Singapore, mainland China and Hong Kong); US persons are additionally subject to FATCA.

None of the above is tax advice; cross-border readers should obtain professional advice in their own jurisdiction.

Decision table and next steps

Whichever route you take, neither CPF nor SRS can be used for regular-premium ILPs, and neither changes the charge structure or risk profile of an ILP. What really needs comparing is the gap between "CPF interest / SRS tax deferral" and "the ILP's net return after charges", and whether you can bear a loss. If you would like this interpreted against your own circumstances, you can register your request through the contact details on this site.