Questions About CPF Home Protection Scheme (HPS)

Here are the answers to some common questions that people have on the CPF Home Protection Scheme (HPS).

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1. Can I be exempted from paying the HPS?

If you have an insurance policy that is enough to cover your outstanding housing loan up to the full term of loan or age 65, you can apply for exemption from HPS.
You may apply to be exempted online via my CPF Online Services.
You will get a full premium refund into your CPF Ordinary Account (OA) if the exemption application is received and approved by the Board within one month from the issuance of the HPS cover.
Otherwise, a pro-rated refund will be given to your CPF OA upon the termination of your HPS cover.

The types of insurance policies, both conventional and investment-linked, that are acceptable are:
a) Whole Life
b) Term Life
c) Endowments
d) Life Riders (must be attached to a basic policy)
e) Mortgage Reducing Term Assurance (MRTA) / Decreasing Term Rider

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Recommended Read: If You Invested Right After DBS's IPO

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2. How much am I paying for this protection?

Fortunately, there is a simple method for this.
You can visit the following link to obtain the premium of HPS: https://www.cpf.gov.sg/eSvc/Web/Schemes/HomeProtectionSchemePremium/HomeProtectionSchemePremiumLanding

If you are wondering how is the premium calculated, the premium is calculated based on the following factors:

- Outstanding housing loan on the flat
- Loan repayment period
- Type of loan (concessionary or market rate)
- Sex and age of the applicant

Premiums are generally higher for a higher share of coverage, larger loan amounts or longer repayment periods.

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3. What happens if I do not pay for HPS cover and it lapses?

Similar to all insurance policies, if you do not pay the premiums, the policy will simply lapse.
What will happen then?
When someone unfortunate happens to you, the burden of shouldering the HDB's installment will be on your family.

If you don't want that to happen, you can apply to be insured again under HPS.
However, the cost and eligibility will be re-assessed when you re-apply for HPS.

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Want to know more about HPS, click HERE to learn more. 😉

Recommended Read: CPF Home Protection Scheme is a Lousy Scheme You Probably Own

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