Home Protection Scheme
The Home Protection Scheme (HPS) is a mortgage-reducing insurance scheme to help insured members and their families pay off outstanding housing loans in the event of the insured members' permanent incapacity or premature death before age 65.
Members who are using CPF to pay their monthly housing loan instalments on their HDB/HUDC flat under the Public Housing Scheme (PHS) have to be insured under HPS, provided they are in good health at the time they apply for cover. Members who are not using CPF to pay their monthly housing loan repayment may choose not to be insured.
How much is covered
When applying for the scheme, the member may indicate the proportion of the loan for which he wishes to be insured. If he is the sole owner, he should be insured for 100% of the loan. For co-owners, the total coverage should add up to not less than 100% of the loan.
What it costs
The premium depends on various factors, including the loan amount, repayment period and age of the member. It is payable annually and is deducted from the member's Ordinary Account. If he does not have enough savings in his account, he can top up his Ordinary Account in cash or apply to use his spouse's CPF savings to pay the premium.
For details, visit the CPF website.