• CPF Home Protection Scheme

    The Home Protection Scheme of HPS is a mortgage reducing scheme that will protect you and your family from losing your HDB flat in case of your death, Total Permanent Disability (TPD) or Terminal Illness (TI).

    Under this scheme, you will receive protection up to 65 years OR until your housing loans have been repaid, depending on whichever of the 2 occurs earlier.

    Is it necessary to be insured with HPS?

    If you want to use your CPF Savings for the purchase of your HDB flat and pay for your monthly instalments, you have to be protected under this scheme. However you do not need to apply for HPS if you are purchasing a private property including a private HUDC (Housing and Urban Development Company) flat or an Executive Condominium (EC) because this scheme does not provide coverage for such properties.

    Home Protection Scheme – Starting your cover

    You will be insured under HPS once you satisfy ALL of the following criteria:

    • You legally own the flat.
    • You are legally responsible for your housing loan after having completed the housing loan application.
    • You have made your health declaration and the same has been approved for this scheme.
    • You have made the payment for your first premium under this scheme.

    Home Protection Scheme – How much insurance should you get under HPS?

    Your HPS insurance should match the amount of the monthly installment that is covered by your CPS savings and/or the amount payable by cash. The reason for this is that HPS will only pay off your outstanding home loan up to the sum assured. The sum assured depends on your percentage cover share in case of your death, TI or TPD.

    Note – The total share of cover for your household should add up to a minimum of 100%. But how you and co-owner split the share is up to you. Depending on your financial circumstances you can choose a higher share of say 60% and your partner the remaining share of 40% or vice-versa. The split can be done with any percentage as long as the total adds up to a 100%.

    Length of Coverage under HPS

    • New members of HPS – Annual Premium or AP cover extending up to 65 years OR until your housing loans have been repaid, depending on whichever of the 2 occurs earlier.
    • Members of HPS before March 1, 2001 – Single Premium or SP cover extending up to 55 or 60 years based on when you were first insured under HPS. Note that after the elapse of your SP cover, if you still have an outstanding home loan, the CPF Board will extend an AP cover to you if you make the premium payment.

    Making payments for HPS

    How long should you make payments for this scheme?

    You have to make premium payments for 90% of your cover period under HPS. For example, if your cover period under the Home Protection Scheme is 20 years, then you will have to make payments for 90% of this period which is 18 years.

    How to make payments for the HPS premiums?

    There is no need for you to make any payments by yourself to stay insured under this scheme. The AP will be automatically deducted from your Ordinary Account or OA for the renewal of your cover.

    Remember that the deductions for HPS premiums have precedence over the deductions for your monthly installments on your housing loan. This is done to ensure that you remain insured under this scheme before you use your CPF savings for paying off your loan.

    What if there are not sufficient funds in the OA to stay insured under the HPS and service the home loan?

    If you do not have enough savings in your OA to pay for your HPS premiums as well as the monthly installments on your housing loan, the CPF Board will notify you regarding the same. The Board will ask you to top-up the balance in your OA so there are sufficient funds to make payments on your HPS premiums as well as your housing loan.

    Note – If there are not sufficient funds in your OA to make payments on your HPS premiums, the co-owner of your flat (spouse/child/sibling/parent) can also authorize the CPF Board to use their OA savings for making payments on the HPS premiums.

    How to top-up the balance in the CPF OA?

    The CPF Board will notify you to top-up the balance in your OA through the following ways:

    • Make cash payment at any of the Singapore Post branches.
    • Write a cheque to the CPF Board.
    • Make payment via e-Nets or e-Cashier.
    • Make payment at any of the AXS or SAM stations.

    Non-payment of HPS premium – What happens then?

    If you stop making payments for your HPS cover, your cover will lapse and you will no longer be insured under HPS. If you wish to continue your coverage under this scheme, you will need to reapply to the CPF Board for the same. However, note that at the time of re-application your health condition will be taken into consideration for the approval or rejection of your application.

    What health conditions need to be declared under the HPS?

    You will have to mandatorily declare the following information pertaining to your health when applying for HPS:

    • Your past as well as current illnesses.
    • Surgeries in your past or planned surgeries in the future (if any).
    • Physical or mental impairment (if any).

    The CPF Board can additionally request you to go through a medical examination and/or request you to provide a medical report pertaining to your health condition.

    Calculation of HPS

    There are 4 factors that the CPF Board takes into account when calculating your HPS premium:

    • Your outstanding housing loan.
    • Your loan repayment tenure.
    • Your type of loan.
    • Your age and gender.

    If you want to know the estimate of your HPS premium, you can use the “Home Protection Scheme Premium Calculator”.

    How is the payment under HPS made when the insured passes away, suffers from TI or TPD?

    In case of your death, TI or TPD, the CPF Board will settle your housing loan directly with the HDB or the mortgagee up to the sum insured.

    If the member passes, suffers from TI or TPD after May 1, 2016 – any sum assured remaining balance over the outstanding loan will be refunded into the insured’s OA.

    Deceased members – CPF savings will be distributed between the nominees. If there are no nominations, the funds will go to the Public Trustee who will then distribute the CPF savings of the deceased as per the Muslim Inheritance Laws or Intestacy laws.

    Note – You and/or your joint owner/your personal representatives will be informed by the CPF Board once the Board has made your claim payment.

    Exclusions of HPS

    You cannot claim HPS cover under the following circumstances if they occur during the 1st policy year of cover:

    • If you inflict injury upon yourself or commit suicide.
    • If you commit any criminal offense that is punishable by death.
    • If your claim is the result of your own intentional criminal act.

    You will also not be able to claim HPS cover under the following circumstances:

    • Your health condition was not good prior to the HPS cover commencement.
    • You provided misleading or false information during your application process.
    • Your claim is a result of a war or related operations or participation in a riot.

    Exemption from HPS

    You are eligible for an exemption from the Home Protection Scheme if you are instead insured under one or more from the following insurance policies:

    • Term Life.
    • Whole Life.
    • Life Riders (only if they are attached to some kind of basic policy).
    • MRTA or Mortgage Reducing Term Assurance/ Decreasing Term Rider.

    If you are insured under one or more of the above mentioned policies, they must extend to provide coverage for the full term of your outstanding housing loan OR until you turn 65 years, depending on whichever of the two occurs earlier in case of your death, TI or TPD.

    Your exemption from this scheme can be revoked at any time by the CPF Board if your insurance policy/policies have been altered or discontinued and no longer meet the aforementioned criteria for exemption. Additionally, the CPF Board can also extend you with the HPS cover for the percentage that you were previously exempted from provided you meet their terms and conditions.

    If you want to be exempted from the scheme again, you will need to re-apply for it.

    Applying for HPS

    If you have taken a HDB Loan:

    • Apply at any HDB branch office when applying for using your CPF savings for making payments on your monthly installments for the housing loan.
    • Apply at HDB Hub.

    If you have taken a Bank Loan:

    • Complete form, “Form HBL 1/2/3”. This form is available with all solicitors, banks and CPF Service Centres.

    If you want to want to be covered under HPS without using your CPF savings for your HDB housing loan, you can apply through the following ways:

    • Online – myCPF:
      • Login to the official CPF website using your SingPass.
      • Go to “My Requests” and submit the online application.
    • Mail:
      • Download the form, “HPS Application Form for HPS Cover/to Adjust HPS Cover”.
      • Take a print out and fill up the form with all the necessary information.
      • Mail it to the CPF Board.

    Applying for Exemption from HPS:

    • Online – myCPF:
      • Login to the official CPF website using your SingPass.
      • Go to “My Requests” and submit the online application.
    • Mail:
      • Download the form, “Application for Exemption from HPS”.
      • Take a print out and fill up the form with all the necessary information.
      • Mail it to the CPF Board.

    Once the CPF Board receives your request/s, you will be informed regarding the outcome after your request has been processed.

    Being insured under the HPS scheme can ease the financial burden on and your family should anything happen to you. Suffering from a TI or TPD alone is hard on you as well as your loved ones. Your death will be even harder for them to recover from. Losing the home they shared with you can take a toll on you and your close ones on multiple levels. The HPS scheme can help provide some financial relief should an unfortunate event befall on you. Hence, it is better to be insured with this scheme than wait for such catastrophes to devastate you and your family.

    Central Provident Fund
    CPF Accounts
    CPF Schemes
    CPF Withdrawals
    Others
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.