Home Protection Scheme (HPS) is an term-reducing mortgage insurance managed by CPFB that will help HPS members to pay off the housing loan in the event of death, terminal illness or total permanent disability. It insures member up to 65 years old or until the loan is paid up, whichever is earlier.
510,000 CPF members will pay less for their Home Protection Scheme (HPS) premium from 1st July 2018 onwards, when their insurance is due for renewal. This will benefit 95% of the HPS members, with three quarters of them getting reduction of at least 10% from their existing premiums. The last reduction in HPS premium was done in 2012.
Just to recap, CPF members have to be insured under HPS if they are using CPF savings to pay for the housing loan for their HDB flats. However, they can choose to buy mortgage insurance from private insurer as long as they can fulfill the criteria mandated by CPFB. Visit HPS website to find out more.