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Home Protection Scheme (HPS)

Home Protection Scheme (HPS): 5 Things To Know

Home Protection Scheme (HPS): Do you have a home loan for your HDB? If so, you may be required to apply for Home Protection Scheme. Learn more about your government’s special insurance scheme.

1. Eligibility for Home Protection Scheme

To be eligible for Home Protection Scheme (HPS), you must own an HDB flat. executive condominiums (ECs) or privatised Housing and Urban Development Company (HUDC) flats, private insurance is recommended.

If you do not own an HDB flat, you may consider applying for private insurance instead of HPS. You can find out more about Private Mortgage Insurance Singapore.

2. Home Protection Scheme (HPS) is required if you’re using CPF savings to pay for your HDB loan instalments

If you are using CPF to pay your monthly housing instalments, you are required to apply for HPS. However, if you use cash to pay the instalments, it is not mandatory for you to apply, but it is encouraged.

If you apply for an HPS cover, you need to be in good health. You might be required to undergo a medical examination and submit the results to them. You may also need to provide them with a copy of your medical report from your attending doctor. If you are not eligible for Home Protection Scheme cover, you can still use your CPF savings to pay your monthly housing instalments.

3. Exceptions for HPS

You can apply to be exempted from HPS if you already have a mortgage-reducing insurance policy or an appropriate life insurance policy that is enough to cover your outstanding housing loan up to the full term of loan or age 65, whichever is earlier. This type of insurance must be readily available and widely marketed:

  • Whole Life
  • Term Life
  • Endowments
  • Life Riders attached to a Basic Policy
  • Mortgage Reducing Term Assurance (MRTA) or
  • Decreasing Term Rider

Your private insurance policy must be able to provide coverage for terminal illness, total permanent disability and death.

We recommend that you apply for HDB’s Home Protection Scheme scheme if you intend to use your CPF savings to pay the monthly housing instalment on your HDB flat. If you don’t do so, your monthly housing instalment arrangement may be disrupted if the HPS exemption is not submitted and approved in time

When your Home Protection Scheme (HPS) exemption is approved, you will receive a pro-rated premium refund when your HPS cover terminates. The refund will be credited to your Ordinary Account.

4. What Home Protection Scheme (HPS) covers?

The Home Protection Scheme is an insurance plan that protects you and your loved ones from losing your Housing and Development Board flat in the event of death, terminal illness or total permanent disability.
HPS covers members up to age 65 or until the housing loans are paid off, whichever comes first.

5. How much does HPS costs?

The premium for the Home Protection Scheme is calculated based on five factors:

  1. Outstanding housing loan of the flat
  2. Loan repayment period
  3. Type of loan (concessionary or market rate)
  4. Age and gender of the member
  5. Percentage share of cover

Your annual HPS premium payment will be automatically deducted from your Ordinary Account (OA). You will only need to pay the annual premium for 90% of the HPS cover period. For example, if your HPS cover period is 30 years, you will only need to pay the premium for 27 years

You can get an estimate of your premium using the CPF website‘s Premium Calculator (Tools > Housing > Home Protection Scheme Premium Calculator).

Takeaway: HPS is not merely a mortgage insurance. It’s a mortgage-reducing insurance, which means that the sum assured will decrease over time along with your HDB housing loan balance and eventual payoff.

Many Singaporeans are unaware that Home Protection Scheme (HPS) is not just a mortgage insurance. It is also a mortgage-reducing insurance, which means that the sum assured will decrease over time along with your HDB housing loan balance and eventual payoff.

We think it might be worth considering level mortgage insurance instead. Read our Why Choose Level term Mortgage Insurance? article and tell us what you think!

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