Introduction:
If you are a homeowner in Singapore, you might have heard of the Home Protection Scheme (HPS). The HPS is a mortgage-reducing insurance scheme that provides protection to homeowners and their families in the event of death, terminal illness, or total permanent disability. The scheme is designed to protect your Housing and Development Board (HDB) flat and ensure that your loved ones are not burdened with the financial responsibility of paying off the mortgage.
Understanding HDB Home Protection Scheme (HPS):
The HPS is compulsory for all HDB homeowners who are using their Central Provident Fund (CPF) savings to pay their monthly home loan instalments. The premiums for the HPS are automatically deducted from your CPF account, and the coverage lasts until you have fully paid off your housing loan or until you reach the age of 65, whichever comes first. If you are not using your CPF savings to pay your home loan, you can still opt-in to the HPS.
Financial Aspects of HPS:
The premiums for the HPS are affordable and depend on the loan amount, age, and loan repayment period. The premiums are revised periodically, and the latest revision took effect on 1 July 2021. The HPS is a valuable scheme that provides peace of mind to homeowners and their families, knowing that their home is protected in the event of unforeseen circumstances.
Key Takeaways
- The Home Protection Scheme (HPS) is a mortgage-reducing insurance scheme that provides protection to homeowners and their families in the event of death, terminal illness, or total permanent disability.
- The HPS is compulsory for all HDB homeowners who are using their Central Provident Fund (CPF) savings to pay their monthly home loan instalments.
- The premiums for the HPS are affordable and depend on the loan amount, age, and loan repayment period.
Understanding HDB Home Protection Scheme (HPS)
If you are a homeowner in Singapore, you may have heard of the Home Protection Scheme (HPS). This scheme is designed to protect HDB homeowners from losing their homes in the event of death, terminal illness, or total permanent disability. Here’s what you need to know about HDB HPS Singapore.
What Is Home Protection Scheme?
The Home Protection Scheme (HPS) is a mortgage-reducing insurance scheme that is designed to protect HDB homeowners from losing their homes in the event of death, terminal illness, or total permanent disability. This scheme is compulsory for any HDB owner using CPF to pay the monthly home loan instalment. HPS is a mortgage reducing scheme that prevents homeowners from losing their HDB flat due to unfortunate circumstances.
Eligibility and Enrolment
If you are buying an HDB flat and using CPF to pay the home loan, you are eligible for the Home Protection Scheme. However, if you are not using CPF to pay the home loan, you can still opt in for the scheme. The annual premium for HPS is calculated based on the outstanding housing loan and the age of the insured. You can enrol for the HPS at the point of signing the Agreement for Lease or at any time thereafter.
Coverage and Benefits
The sum assured under the HPS will be used to pay off the outstanding housing loan in the event of death, terminal illness, or total permanent disability of the insured. The coverage under the HPS will decrease over time as the outstanding housing loan decreases. The annual premium for HPS is payable throughout the loan period until the outstanding housing loan is fully repaid or until the insured reaches the age of 65, whichever is earlier.
In conclusion, the Home Protection Scheme is an important scheme for HDB homeowners in Singapore. It provides protection for your home and ensures that you or your family maintain ownership of your house in the event of unfortunate circumstances. The annual premium for HPS is affordable and is calculated based on the outstanding housing loan and the age of the insured.
Financial Aspects of HPS
If you are an HDB homeowner in Singapore, you may be eligible for the Home Protection Scheme (HPS), which is a mortgage-reducing insurance policy that protects you and your loved ones from losing your HDB flat in the event of death, terminal illness, or total permanent disability. Here are some important financial aspects of the HPS that you should know about:
Premium Calculations
The premium for the HPS is calculated based on your age, gender, and the outstanding housing loan amount. You can use the Premium Calculator on the CPF website to estimate your annual premiums. It is important to note that the premium payments are made using your CPF Ordinary Account (OA) savings.
CPF Savings and HPS
If you are using your CPF savings to pay for your monthly housing instalments, the HPS is compulsory. This means that you cannot opt out of the scheme. However, if you are not using your CPF savings to pay for your housing loan, you can still choose to opt in to the HPS.
Handling Outstanding Housing Loans
If you have an outstanding housing loan, the HPS provides coverage for the outstanding loan amount. The annual premium for the HPS cover is based on the outstanding loan amount and decreases as the loan is paid off over time.
The HPS provides peace of mind and financial security to HDB homeowners in Singapore. By paying an annual premium, you can protect your loved ones from losing their home in the event of unexpected circumstances.
Policy Details and Claims
If you are an HDB owner using CPF to pay the monthly home loan instalment, you are eligible for the Home Protection Scheme (HPS). HPS is a mortgage-reducing insurance that protects you and your loved ones from losing your HDB flat in the event of death, terminal illness, or total permanent disability before fully paying your mortgage.
Exemptions and Exclusions
It is important to note that HPS claims are not payable if the member has committed self-inflicted injury or suicide. In addition, if the member has committed a criminal offence punishable by death, the claim will not be paid. Furthermore, the claim will not be paid if it arose out of the member’s own intentional criminal act.
Claims Process
To make an HPS claim, you need to submit a claim form and a medical report. The medical report should be completed by a registered medical practitioner. You should also submit the original HPS certificate and a copy of the death certificate or the certificate of terminal illness issued by a registered medical practitioner.
Once your claim is approved, the insured sum will be disbursed to the HDB or the bank that holds the housing loan. The amount disbursed will be used to reduce the outstanding loan amount.
Understanding Co-Ownership
If you are a co-owner of an HDB flat, you should note that you can be insured under HPS only once. This means that if you co-own two or more HDB flats, you can be insured for only one of them. In addition, if you co-own an HDB flat with someone who is not eligible for HPS, you can still be insured. However, the insured sum will be based on your share of the ownership.
In conclusion, the Home Protection Scheme is a valuable insurance policy that protects HDB owners from losing their homes in the event of death, terminal illness, or total permanent disability. It is important to understand the exemptions and exclusions of the policy, as well as the claims process and co-ownership rules. By doing so, you can ensure that you and your loved ones are adequately protected.
Alternatives to HPS
If you are an HDB homeowner, you may be wondering if there are any alternatives to the Home Protection Scheme (HPS). Here are some other options to consider:
Private Insurance Options
There are various private insurance options available that can provide you with insurance protection for your HDB flat. One option is to purchase a private mortgage insurance policy. This type of policy can provide coverage for your mortgage payments in the event that you are unable to make them due to death, disability or illness.
Another option is to purchase a whole life insurance policy with a life rider. This type of policy can provide you with both insurance protection and an investment component. The life rider can provide coverage for your mortgage payments in the event of your death or disability.
Comparing MRTA and HPS
Mortgage Reducing Term Assurance (MRTA) is another option to consider. MRTA is a type of mortgage-reducing insurance that can provide you with coverage for your mortgage payments in the event of death, disability or illness. One of the main differences between MRTA and HPS is the loan repayment period. MRTA typically covers the entire loan repayment period, while HPS only covers up to the age of 65.
Another difference is the share of cover. With HPS, the share of cover decreases over time as the mortgage is paid off. With MRTA, the share of cover remains constant throughout the mortgage repayment period.
It is important to note that HPS is a concessionary loan requirement for HDB homeowners who use their CPF savings to pay for their HDB flat. If you opt for a bank loan, you may not be required to have HPS coverage. However, you will need to apply for private insurance coverage to protect your home and your family.
In conclusion, while HPS is a popular option for HDB homeowners, there are other alternatives available. It is important to carefully consider your options and choose the one that best suits your needs and budget.
Navigating HPS with Digital Services
Are you an HDB owner in Singapore looking for an easier way to navigate the Home Protection Scheme (HPS)? With the help of digital services, you can now manage your HPS with ease. Here are some digital services that can make your HPS experience smoother:
Online Premium Calculator
The HDB website offers an online premium calculator that can help you estimate your HPS premium. This calculator takes into account factors such as your age, loan amount, and loan tenure to provide you with an accurate premium estimate. By using this calculator, you can get a better idea of how much you need to budget for your HPS premium.
HDB and CPF Digital Platforms
The HDB and CPF digital platforms offer a range of services that can help you manage your HPS. For example, you can use the HDB website to check your HPS coverage and premium payment status. You can also use the CPF website to view your HPS transactions and update your personal details.
By using these digital platforms, you can manage your HPS from the comfort of your own home. You can also avoid the hassle of queuing up at HDB or CPF service centres.
If you have a SingPass account, you can also access these digital services with ease. SingPass is a digital identity system that allows you to access a range of government services online. By using SingPass, you can log in to the HDB and CPF websites securely and conveniently.
By using digital services, you can save time and effort when managing your HPS. You can also keep track of your HPS coverage and premium payments more easily. If you have a CPF Ordinary Account (OA), your HPS premium can be deducted automatically from your account.
Note that if you are taking an HDB concessionary loan, you are required to be covered under HPS. However, if you are not taking an HDB concessionary loan, you can opt out of HPS.
Frequently Asked Questions
How can I discover the cost of my HPS premium?
To discover the cost of your HPS premium, you can use the HPS Premium Calculator available on the CPF website. Simply enter your loan amount, loan tenure, and age, and the calculator will provide you with an estimate of your HPS premium.
Where might I find the contact details for HPS enquiries?
If you have any enquiries regarding HPS, you may contact the HPS hotline at 1800-222-0400 or email them at [email protected]. You may also visit any CPF Service Centre for assistance.
What’s the method to calculate my potential HPS contribution?
Your potential HPS contribution is calculated based on your loan amount and loan tenure. The premium rate for HPS is fixed at 0.6% per annum of the insured loan amount. You can use the HPS Premium Calculator to estimate your HPS premium and contribution.
Under what circumstances might my CPF HPS application be rejected?
Your CPF HPS application may be rejected if you are not eligible for HPS, or if you have provided incorrect or incomplete information in your application. It is important to ensure that you meet the eligibility criteria and provide accurate information in your application.
Is enrolling in HPS an absolute must for homeowners?
If you are an HDB flat owner using CPF to pay your monthly home loan instalment, enrolling in HPS is compulsory. However, if you are buying an HDB flat but not using CPF to pay the home loan, you are still eligible for HPS and can opt in.
In what way are HPS payments taken from my account?
HPS payments are deducted from your CPF Ordinary Account (OA) automatically. If there are insufficient funds in your OA, the payment will be deducted from your Special Account (SA) or Retirement Account (RA). If there are insufficient funds in all your CPF accounts, the payment will be deducted from your cash savings.