If you’re a homeowner in Singapore, you’re probably familiar with the Home Protection Scheme (HPS). This insurance scheme is designed to protect you and your family from losing your home in the event of unforeseen circumstances. But what exactly is HPS coverage, and how does it work? In this article, we’ll break down everything you need to know about HPS coverage in Singapore.
Understanding HPS coverage is essential for any homeowner in Singapore. HPS is a mortgage-reducing insurance scheme that protects you and your family from losing your home in the event of death, terminal illness, or total and permanent disability. HPS is administered by the Central Provident Fund (CPF) Board, and it is compulsory for all HDB homeowners who use their CPF savings to pay for their home loans.
Eligibility and enrolment, premiums and payment, coverage and claims, understanding exclusions and limitations, alternatives to HPS, additional resources, and frequently asked questions are all topics that we’ll cover in detail in this article. By the end of this article, you’ll have a better understanding of how HPS coverage works and how it can protect you and your loved ones.
Key Takeaways
- HPS is a mortgage-reducing insurance scheme that protects you and your family from losing your home in the event of death, terminal illness, or total and permanent disability.
- HPS is compulsory for all HDB homeowners who use their CPF savings to pay for their home loans.
- Eligibility and enrolment, premiums and payment, coverage and claims, understanding exclusions and limitations, alternatives to HPS, additional resources, and frequently asked questions are all important topics to consider when understanding HPS coverage in Singapore.
Understanding HPS Coverage
If you are a CPF member who owns an HDB flat, you may want to consider the Home Protection Scheme (HPS) to protect your home. HPS is mortgage-reducing insurance that provides coverage for HDB flat owners who are paying their monthly housing instalments using CPF savings or cash.
HPS provides coverage for members until they turn 65 or until the housing loans are paid up, whichever is earlier. The HPS cover is designed to help you and your loved ones pay off the outstanding housing loan in the unfortunate event of death, terminal illness or total permanent disability.
The sum assured for HPS cover is based on the outstanding housing loan amount at the time of the HPS application. The share of body is determined by the percentage of the great housing loan that is covered by CPF savings. For example, if you are using 50% of your CPF savings to service your monthly housing instalments, then you will be covered for 50% of the outstanding housing loan amount.
It is important to note that HPS is compulsory for Singaporeans who choose to service their monthly home loan repayments using CPF savings – whether partially or fully – unless they qualify for exemptions or are excluded due to pre-existing conditions.
In addition to providing coverage for the outstanding housing loan, HPS also offers a range of benefits, including:
- Premiums that are affordable and can be paid using CPF savings
- A no-claims bonus that rewards members for not making claims
- Flexibility to switch between HPS insurers
Overall, HPS provides peace of mind for HDB flat owners by ensuring that their homes are protected in the event of unforeseen circumstances.
HPS Coverage in Singapore: Eligibility and Enrolment
If you are a Singaporean and own an HDB flat, executive condominium, or a privatised Housing and Urban Development Company (HUDC) flat, you are eligible for the Home Protection Scheme (HPS) coverage. As a legal owner or co-owner, you are required to have HPS coverage to protect your CPF savings and your loved ones in the event of death, terminal illness, or total permanent disability.
Eligibility Criteria
To qualify for HPS coverage, you must have a valid SingPass and have completed the loan application with HDB or the approved mortgagee. You must also have made your health declaration, which is accepted for HPS coverage, and have a good health record.
Enrolment Process
To enrol in HPS, you can apply for HPS coverage through the HDB portal or with the approved mortgagee. You will need to provide your personal details, CPF account information, and HDB flat details. You may also need to undergo a medical examination and submit a medical report if necessary.
Exemption from HPS
If you have an outstanding mortgage loan for your HDB flat, you are required to have HPS coverage. However, if you have fully paid up your housing loan or if you have private residential properties, you may apply to be exempted from HPS coverage. In such cases, you may need to provide personal insurance coverage or private mortgage insurance to protect your CPF savings and your loved ones. You can apply for exemption from HPS coverage through the HDB portal or with the approved mortgagee.
Overall, the eligibility and enrolment process for HPS coverage is straightforward and easy. By having HPS coverage, you can protect your CPF savings and your loved ones from financial burdens in the event of unforeseen circumstances.
HPS Coverage in Singapore: Premiums and Payment
If you are a homeowner in Singapore, you are required to have Home Protection Scheme (HPS) coverage to protect your HDB flat in the event of death, terminal illness, or total permanent disability. Here is what you need to know about HPS premiums and payment.
Calculating Your Premium
Your HPS premium is calculated based on the outstanding housing loan you have for your HDB flat. You can use the HPS Premium Calculator to estimate your premium. The premium payable is determined by your age, gender, loan repayment period, and type of loan.
Premium Payment Methods
You can pay your HPS premiums using your CPF Ordinary Account (OA) or cash. If you choose to pay using your CPF OA, you can use your CPF savings to top up your premium payment. Your premium payments will be deducted from your CPF OA until you reach the age of 65 or until your housing loans are paid up, whichever is earlier.
Understanding Premium Payment Terms
Your HPS premium is paid annually and is based on the outstanding housing loan you have for your HDB flat. The premium payable is determined by your age, gender, loan repayment period, and type of loan. The premium payment term is 90% of the cover period. This means that if your housing loan is 25 years, your HPS cover period will be 22.5 years.
It is important to note that if you fail to pay your HPS premiums, your coverage will lapse. This means that you will no longer be protected by HPS, and your outstanding housing loan will not be covered. Therefore, it is vital to ensure that your premium payments are up to date to avoid any lapses in coverage.
In conclusion, understanding HPS premiums and payments is crucial for all homeowners in Singapore. By calculating your premium, choosing the suitable payment method, and understanding the payment terms, you can ensure that you have adequate coverage and protect your HDB flat in the event of unforeseen circumstances.
HPS Coverage in Singapore: Coverage and Claims
If you are a homeowner in Singapore, you may have heard of the Home Protection Scheme (HPS). But what exactly does it cover, and how do you file a claim if needed? Here’s what you need to know.
Extent of Coverage
HPS is a mortgage-reducing term assurance that provides coverage against death, total permanent disability, and terminal illness. It is meant to protect you and your loved ones from losing your HDB flat in the event of such unfortunate circumstances.
The sum assured is based on your outstanding housing loan amount, and the share of cover is determined by the percentage of the loan that is paid using your CPF Ordinary Account savings.
Filing a Claim
If you need to file a claim, you or your family members can do so by submitting the necessary documents to the CPF Board. The claim can be made when a member passes away, is certified by an accredited doctor to be suffering from terminal illness, or is certified by an accredited doctor to be suffering from total permanent disability.
To file a claim, you will need to provide documents such as the death certificate, medical report, and HPS claim form. You can find more information on the CPF website.
What Happens If You Default
It is important to note that HPS coverage is mandatory for all Singaporeans who use CPF savings to pay for their housing loans. If you do not make premium payments, your HPS cover will lapse, and you will no longer be protected.
In addition, if you default on your housing loan, your HPS coverage will also be affected. The insurance policies that are tied to your loan, such as mortgage-reducing term assurance (MRTA) or decreasing term riders, may be affected as well.
Therefore, it is crucial to make your premium payments on time and to keep up with your housing loan payments to ensure that you and your loved ones are protected in case of any unforeseen circumstances.
HPS Coverage in Singapore: Understanding Exclusions and Limitations
As with any insurance policy, there are exclusions and limitations to the Home Protection Scheme (HPS) coverage in Singapore. It is important to be aware of these exclusions and limitations to have a clear understanding of what is covered and what is not.
General Exclusions
HPS coverage does not cover certain events, such as wars, riots, and criminal offences punishable by death. In addition, if the insured under HPS commits suicide or self-inflicted injury within the first year of the policy, claim benefits will not be payable. The same applies to any criminal offence the insured commits, punishable by death or imprisonment for a term exceeding 12 months.
Policy Lapse and Reinstatement
It is vital to keep up with your premium payments to avoid a lapse in coverage. If the policy lapses, you will not be covered under HPS until the policy is reinstated. To reinstate the procedure, you will need to pay all outstanding premiums and any interest charged by the insurer.
False Declarations and Fraud
Providing false or misleading information when applying for HPS coverage can result in the policy being voided. This means that you will not be covered under HPS, and any premiums paid will not be refunded. In addition, any fraudulent claims made under HPS will not be payable, and legal action may be taken against the claimant.
It is important to note that this is not an exhaustive list of exclusions and limitations. It is recommended that you read the full terms and conditions of the policy and contact your insurer if you have any questions or concerns.
Remember, HPS coverage is designed to protect you and your loved ones from losing your HDB flat in the event of death, terminal illness, or total permanent disability. By understanding the exclusions and limitations of the policy, you can make informed decisions about your coverage and ensure that you are adequately protected.
HPS Coverage in Singapore: The Alternative Options
If you’re looking for alternatives to HPS, there are a few options available in Singapore. Here are some of the most popular choices to HPS:
Private Insurance Options
Private insurance is one option that you can consider as an alternative to HPS. It is not compulsory, unlike HPS, but it can provide you with additional protection. Private insurance can cover a range of events, including death, terminal illness, and total permanent disability.
Private insurance can be more expensive than HPS, but it can offer more comprehensive coverage. You can choose the level of coverage that you need, and you can tailor your policy to your specific needs.
Comparing MRTA and HPS
Another alternative to HPS is Mortgage Reducing Term Assurance (MRTA) or Decreasing Term Rider. MRTA is a type of private mortgage insurance that can provide you with protection against the risk of losing your home due to death, terminal illness, or total permanent disability.
MRTA works differently from HPS. HPS is a government-run scheme that provides mortgage-reducing insurance, while MRTA is a private insurance policy that provides a lump sum payment to cover the outstanding mortgage balance in the event of death or total permanent disability.
When comparing MRTA and HPS, it’s important to consider the cost and the level of coverage that you need. MRTA can be more expensive than HPS, but it can offer more comprehensive coverage.
Overall, there are several alternatives to HPS that you can consider. Private insurance and MRTA are two popular options that can provide you with additional protection. When choosing an alternative to HPS, it’s important to consider your specific needs and budget.
HPS Coverage in Singapore: Additional Resources
If you want to learn more about the Home Protection Scheme (HPS) and how it works, there are several resources available that can help. Here are some of the best ones to check out:
CPF Tools and Support
The CPF Board website has a range of tools and resources that can help you understand HPS coverage. For example, you can use the HPS Premium Calculator to estimate how much your premiums will be based on your loan amount and age. You can also find information on how to apply for HPS coverage and what to do if you need to make a claim.
Seeking Professional Advice
If you have questions about HPS coverage or need help understanding your options, it may be a good idea to speak with a financial advisor. A professional advisor can help you evaluate your needs and determine the best insurance policies to meet them. They can also help you understand how your health condition or medical report may affect your coverage and premiums.
When looking for a financial advisor, be sure to choose someone who is licensed and experienced. You can also check with professional associations like the Financial Planning Association of Singapore (FPAS) to find qualified advisors.
Remember, HPS coverage is an essential part of protecting your home and your family’s financial future. By taking the time to understand your options and seek out the right resources, you can make informed decisions that will help you achieve your goals.
Frequently Asked Questions
How can I calculate my potential payouts with the HPS calculator?
Calculating your potential payouts with the HPS calculator is easy and straightforward. You can access the HPS calculator through the CPF website. The calculator will require you to input various details such as your age, loan amount, loan tenure, and interest rate. Once you’ve provided all the necessary information, the calculator will provide you with an estimate of your potential payouts.
What medical check-ups are required for CPF’s HPS enrolment?
CPF’s HPS enrolment requires you to declare your health status. In some cases, CPF may require you to undergo a medical examination, especially if you have any pre-existing medical conditions. The medical examination will determine your eligibility for the HPS coverage and the premium you will need to pay.
Can I be exempted from the Home Protection Scheme, and under what circumstances?
Yes, you can be exempted from the Home Protection Scheme. However, there are specific circumstances under which you can be exempted. You can apply for an exemption. If you have an existing mortgage insurance policy. As both provides coverage similar to the HPS,
In addition, do you use your CPF savings to pay for your HDB flat? If you have sufficient funds to cover your outstanding loan amount, exemption is possible.
What’s the process for applying to the HPS, and how thrilling is it to get protected?
Applying for the HPS is a simple and straightforward process. You can apply for HPS coverage when you sign your HDB loan agreement. The HPS premium will be automatically deducted from your CPF Ordinary Account. It’s thrilling to get protected as you will have peace of mind knowing that your family’s home is secure.
In what scenarios can I make a claim under the HPS, and how does it work?
You can make a claim under the HPS in the event of death. It includes terminal illness, or total and permanent disability (TPD). It’s up to the age of 65.
The HPS will pay off your outstanding HDB loan amount up to a maximum of $600,000. The claim process is simple. You or your family member will need to contact CPF to submit the necessary documents. CPF will then process your claim and disburse the payout.
Is enrolling in HPS a beneficial decision for the long-term security of my family’s home?
Enrolling in HPS is a beneficial decision for the long-term security of your family’s home. The HPS provides comprehensive coverage for your HDB loan. It’s accessible in the event of death, terminal illness, or total and permanent disability.
The HPS will pay off your outstanding loan amount, ensuring that your family’s home is secure.
