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Important Notes on Home Protection Scheme (HPS)Important Notes on Home Protection Scheme (HPS)TrueTrue

 

 

Important Notes on Home Protection Scheme (HPS)Important Notes on Home Protection Scheme (HPS)<h2> <strong>NOTE: This application is subject to the provisions of the Central Provident Fund Act (Chapter 36) 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. </strong></h2><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>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. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>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 housing loan repayment, including CPF savings and/or cash. </p></td></tr></tbody></table><p> <strong>Start of HPS</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>Your HPS cover will start after the housing loan is disbursed and:</p><ol type="a"><li>you are the legal owner of the flat*,</li><li>you are legally responsible for the housing loan,</li><li>you have made a health declaration which is accepted by the CPF Board, and</li><li>you have paid your first premium.</li></ol></td></tr></tbody></table><p> <span style="font-size:0.9em;"> <sup>*</sup>Not applicable to members who have purchased a HDB flat under the Design, Build and Sell Scheme and have opted to pay the purchase by progress payments. Progress payments are payments that the developer will ask the member to pay as the flat is being constructed.</span></p><p> <strong>Health Declaration</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>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. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;vertical-align:top;"><p>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. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>3.</p></td><td style="width:95%;vertical-align:top;"><p>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. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>4.</p></td><td style="width:95%;vertical-align:top;"><p>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/Adjust Home Protection Scheme Cover’ form and the CPF Board will reassess your eligibility based on the additional health declaration. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>5.</p></td><td style="width:95%;vertical-align:top;"><p>The CPF Board may request a copy of the medical report on your health condition and/or require you to undergo a medical examination. </p></td></tr></tbody></table><p> <strong>Policy Lapse</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>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. If your policy lapses due to non-payment of HPS premiums, the CPF Board reserves the right to cease the use of your CPF savings for the monthly housing loan instalments. </p></td></tr></tbody></table><p> <strong>Premium Payment and Grace Period </strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>The premium is calculated based on your outstanding housing loan, loan repayment period, gender and age. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>Premiums will be deducted annually from your CPF OA on the premium payment date as indicated in the certificate. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>3.</p></td><td style="width:95%;"><p>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. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>4.</p></td><td style="width:95%;"><p>The CPF Board will notify you in writing to pay the outstanding premium within the stated grace period if you do not have enough CPF OA savings. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>5.</p></td><td style="width:95%;"><p>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. </p></td></tr></tbody></table><p> <strong>Adjustment of Coverage</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>You may apply to the CPF Board to adjust your HPS cover if your housing loan or share of housing loan repayment have changed. You will need to provide your latest loan information, make a new health declaration (for increased coverage) and pay the additional HPS premium, if any. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>Your latest declaration of share of cover on your application form for adjustment of share of cover will supersede your existing share of cover. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>3.</p></td><td style="width:95%;"><p>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 do not indicate your revised percentage share of cover in this form, your HPS cover will be adjusted based on your existing percentage share of cover. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>4.</p></td><td style="width:95%;"><p>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. </p></td></tr></tbody></table><p> <strong>Termination of HPS Cover </strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>The HPS cover will end if any of the following occur: </p><ol type="a"><li>your housing loan has been paid up;</li><li>the flat for which the HPS cover was for is sold; or</li><li style="margin-bottom:10px;">a new HPS insurance cover is issued for another flat.</li></ol></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>The unused portion of the premium will be paid into your CPF OA upon termination of the cover. If you took up a bank loan, you will need to inform the CPF Board in writing that your housing loan have been fully redeemed in cash, so that the HPS cover can be terminated. </p></td></tr></tbody></table><p> <strong>Cancellation of HPS Cover </strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>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. </p></td></tr></tbody></table><p> <strong>Death Claims</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>If the claim is admitted, the CPF Board will settle the outstanding housing loan, up to the insured sum, with HDB or the approved mortgagee directly. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>If the insured amount is higher than the outstanding loan, the excess amount will be paid into your CPF OA. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>3.</p></td><td style="width:95%;"><p>The CPF Board shall require evidence of death of the member. </p></td></tr></tbody></table><p> <strong>Claims under Medical Grounds</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>You may apply for HPS claim if you suffer from terminal illness or total permanent disability. Total permanent disability refers to the inability to take part in any employment permanently, or the total permanent loss of the physical function of any of the following: </p><ol type="a"><li>Both eyes; or;</li><li>Two limbs, or;</li><li style="margin-bottom:10px;">One eye and one limb</li></ol><ol></ol></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;"><p>You may be required to undergo a medical examination by the CPF Board’s appointed doctors to confirm the medical condition. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>3.</p></td><td style="width:95%;"><p>The CPF Board will settle your housing instalments (based on your share of HPS cover) for a period of up to two years before settling the insured sum in full. If the insured amount is higher than the outstanding loan, the excess amount will be paid into your CPF OA. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>4.</p></td><td style="width:95%;"><p>Once a claim is admitted, you will not have to pay future annual premiums. </p></td></tr><tr><td style="width:5%;vertical-align:top;"><p>5.</p></td><td style="width:95%;"><p>If you resume any employment or are no longer disabled, the CPF Board will cease the claim payment. You will be covered for the remaining insured sum and will have to resume your premium payments. </p></td></tr></tbody></table><p> <strong>Exclusions</strong></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td style="width:5%;vertical-align:top;"><p>1.</p></td><td style="width:95%;vertical-align:top;"><p>Claim benefits are not payable if the following events occur within the first policy year of the cover: </p><ol type="a"><li>you have committed self-inflicted injury of suicide, or</li><li>you have committed a criminal offence punishable by death, or </li><li style="margin-bottom:10px;">your claim arose out of your own intentional criminal act.</li></ol><ol></ol></td></tr><tr><td style="width:5%;vertical-align:top;"><p>2.</p></td><td style="width:95%;vertical-align:top;"><p>Claim benefits are also not payable if: </p><ol type="a"><li>you were not in good health before the commencement of the HPS cover, or </li><li>you provided false or misleading information, or </li><li>your claim arose from wars or any warlike operations or participation in any riot.</li></ol></td></tr></tbody></table>

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