- The Home Protection Scheme (HPS) is a mortgage-reducing insurance that protects CPF members and their loved ones from losing their HDB flat in the event of death, terminal illness or total permanent disability before age 65. Members will be covered up to age 65 or until their housing loan has been paid up, whichever is earlier.
- CPF members who use their CPF savings to pay their monthly housing loan instalments for their HDB flats have to apply for HPS. Their HPS cover should at least match their share of the monthly housing instalments, including CPF savings and/or cash.
NOTE:
Your HPS application and/or HPS coverage is subject to the provisions of the Central Provident Fund Act and the Central Provident Fund (Home Protection Insurance Scheme) Regulation made there under, and any amendment, modification or re-enactment thereof and also to all such terms and conditions as may be imposed from time to time.
Start of HPS
- Your HPS cover will start after the housing loan is disbursed and:
a. You are the legal owner of the flat
b. You are legally responsible for the housing loan
c. You have made a health declaration and are accepted for cover under HPS, and
d. You have paid your first premium.
Health Declaration
- You need to fully disclose all information regarding your health condition and any material fact that may affect the eligibility to be covered under HPS. If you are not sure about the relevance of the information, you are advised to disclose it. This includes any medical information that you may have provided to the officer during your appointments at the HDB/financial institution or to the solicitor but not provided in your health declaration. If there is a change in the state of your health before the HPS cover is issued to you, you must inform us immediately.
- A new health declaration is required if you are adjusting your HPS coverage upwards due to an increase in loan repayment period, loan quantum or share of cover. If you are not eligible for the additional coverage, you may continue to be insured under the cover that was extended to you earlier, provided that you do not have any undisclosed serious pre-existing health condition when you applied for your earlier HPS cover.
- The CPF Board will not consider claims from members who have given false or misleading statements, or have withheld information in their health declarations. No premium is refundable upon the rejection of claim.
- If you would like to declare any health conditions that you have omitted when you applied for an HPS cover, please submit a new ‘Apply for/Adjust Home Protection Scheme Cover’ form and the CPF Board will reassess your eligibility based on the additional health declaration.
- The CPF Board may request a copy of the medical report on your health condition and/or require you to undergo a medical examination.
- If you are not eligible for an HPS cover, you can still use your CPF savings to pay the monthly housing instalment.
Policy Lapse
- You are required to be covered under HPS if you are using your CPF savings to pay your monthly housing loan instalments, subject to good health and premium payment.
Premium Payment and Grace Period
- The premium is calculated based on your outstanding housing loan, loan repayment period, gender and age.
- Premiums will be deducted annually from your CPF Ordinary Account (OA) on the premium payment date as indicated in the HPS certificate that is sent to you upon the issuance of your HPS cover.
- The premium deduction will take priority over the deduction of CPF savings for monthly housing instalments. You should ensure that you have enough CPF savings for the payment of the HPS premium and monthly housing instalments.
- The CPF Board will notify you to pay the outstanding premium within the stated grace period if you do not have enough CPF OA savings.
- If the outstanding premium is not paid after the grace period, the policy will lapse. You will have to apply for HPS cover again, and the acceptance of your application is subject to your health condition then.
Adjustment of Coverage
- If you have taken an HDB housing loan, there is no need to apply to adjust your HPS cover when:
a. There are changes to your housing loan amount or loan repayment period
b. You have used your CPF savings to repay the housing loan, or
c. You have refinanced your housing HDB loan to a bank loan.
We will automatically adjust your HPS cover if the loan quantum and/or repayment period is reduced. We will notify you for HPS cover adjustment if the loan quantum and/or repayment is increased.
- If you have taken a bank loan, there is no need to apply to adjust your HPS cover when:
a. You have used your CPF savings to repay the housing loan, or
b. You have refinanced your loan to another bank loan.
We will automatically adjust your HPS cover if the loan quantum and/or repayment period is reduced. We will notify you for HPS cover adjustment if the loan quantum and/or repayment is increased.
However, if you have changed your loan repayment period or have used cash to repay the housing loan, please submit your application online using your Singpass to adjust your HPS cover. Your HPS cover would be adjusted based on the latest loan details as at application date. No backdated adjustments will be made. It is important to promptly inform us of any changes in your housing loan partial repayment made in cash, so that your HPS cover can be promptly adjusted. Otherwise, you may end up being over-insured or under-insured, which would not be to your benefit.
- You will need to apply to adjust your cover, regardless of loan type, if you wish to:
a. change your percentage of cover to reflect your latest share of responsibility in loan repayment. Your latest declaration of share of cover on your application form for adjustment of share of cover will supersede your existing share of cover.
b. increase your HPS cover, e.g. increase in cover period or sum assured.
- If you are insured under a Single Premium HPS Cover and applying to adjust your insured sum due to changes in your housing loan, an Annual Premium HPS Cover will be issued to you upon full payment of the applicable premium.
- If you are insured under a Single Premium HPS Cover and applying to adjust your percentage share of cover, you will continue to be insured under a Single Premium HPS Cover.
Termination of HPS Cover
- The HPS cover will end if any of the following occurs:
a. Your housing loan has been paid up
b. The flat with HPS cover is sold
c. A new HPS insurance cover is issued to you for your new flat, or
d. You are no longer a Singapore Citizen or Permanent Resident.
- The unused portion of the premium (if any) will be paid into your CPF OA upon termination of the cover. If you took up an HDB loan, we will terminate your HPS cover automatically. If you have taken a bank loan and have used your CPF savings to fully repay your loan, we will be notified and we will end your cover. If you have used cash to fully repay your loan, please inform CPF Board in writing to terminate your HPS cover.
Cancellation of HPS Cover
- The HPS cover will be cancelled if the Sale and Purchase agreement is cancelled. The full HPS premium will be paid into your CPF OA upon cancellation of the cover.
Death Claims
- For deceased insured member with an outstanding housing loan, we will automatically assess his/her claim eligibility once CPF Board is notified of the death by the Immigration and Checkpoints Authority (ICA).
- CPF Board will inform the co-owner(s) or person representing the deceased’s estate of the outcome and if additional information is required.
- When the claim is approved, the outstanding housing loan will be paid directly to the mortgagee.
- Any excess claim amounts will be paid to the deceased insured member’s CPF OA, to be distributed to nominees. In cases where no nominations are made, they will be distributed by the Public Trustee under the intestacy laws or Muslim inheritance laws.
Claims under Medical Grounds
- An insured member who is certified by an accredited doctor (from a hospital, polyclinic or private specialist clinic) to be diagnosed with a terminal illness or total permanent disability may claim the HPS benefits.
- Terminal illness refers to an illness that is likely to result in the death of the member within 12 months.
- Total permanent disability refers to (i) the inability to take part in any employment permanently, or (ii) the total permanent loss of the physical function of both eyes, or two limbs, or one eye and one limb.
To qualify for a claim under (i), the insured member must no longer be physically employed.
- When the claim is approved, the insured member’s housing instalments (based on the share of HPS cover) may be paid by HPS for up to two years before a review of the insured member’s eligibility to claim the remaining insured sum in full is carried out.
If the HPS sum assured is more than the outstanding loan, the excess amount will be paid to the insured member’s CPF OA.
Exclusions
- If any of the following events occur within the first year of the policy, claim benefits will not be payable if the insured person:
- Committed self-inflicted injury or suicide
- Committed a criminal offence punishable by death, or
- Made the claim arising from his/her own intentional criminal act.
Additionally, HPS benefits will not be payable if the insured person:
- Was not in good health before the start of HPS cover
- Provided false or misleading information, or
- Made the claim arising from wars or any war-like operations, or participation in any riot.