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Information for Exemption from the Home Protection Scheme (HPS)Information for Exemption from the Home Protection Scheme (HPS)TrueTrue

 

 

Information for Exemption from the Home Protection Scheme (HPS)Information for Exemption from the Home Protection Scheme (HPS)<ol><li>A person may apply to be exempted from HPS if he has in force, appropriate insurance policies which would discharge his housing loan liabilities in the event of his death, terminal illness (TI) or total permanent disability (TPD) until the end of the housing loan term or until he turns age 65, whichever is earlier.</li><li>A person may only apply for exemption from HPS in respect of a property after obtaining legal ownership of the property, or the housing loan for the property has been disbursed. </li><li>If granted, the exemption will be granted to the applicant(s) who applied for the exemption. Hence, the person(s) who wish to apply for exemption from HPS has to submit his own exemption application to the CPF Board for processing. </li><li>The applicant must be the owner and life insured of the policies used for the exemption. </li><li>If the owner and co-owner of the property use their joint-life policy to apply for HPS exemption, both parties must be the owners and life-insureds of their joint-life policy and the sum assured of the policy must be sufficient to cover 100% of the housing loan. </li><li>The following are the types of insurance policies (traditional or investment-linked policy) that can be considered for exemption purpose: <ol type="a"><li>Whole Life policies; </li><li>Level Term Life policies/Renewable Level Term Life policies; </li><li>Endowment saving policies; </li><li>Mortgage Reducing Term Assurance (MRTA) policies/Decreasing Term policies*. </li></ol></li><li>Types of policies that are NOT acceptable for HPS exemption:</li><ol type="a"><li>Policies that are assigned or pledged as collateral; </li><li>Policies under section 73 of the Conveyancing Law And Property Act (Cap. 61) or under any irrevocable nomination/trust arrangement; </li><li>Policies with loans attached; </li><li>Key-man insurance policies, partnership insurance policies, sole-proprietor insurance policies or any other business insurance policies; </li><li>Policies that are legacies to any persons or organisations; </li><li>Policies in foreign currencies; </li><li>Policies from insurance companies not registered in Singapore; </li><li>Group policies; </li><li>Health and general insurance policies, e.g. accident, fire or home contents policies. </li></ol><li>Upon approval, your HPS cover would be cancelled and the full premium would be refunded if the CPF Board receives your HPS exemption application within one month from the issuance of your HPS cover. If the CPF Board receives your HPS exemption application later than one month from the issuance of your HPS cover, a surrender value/pro-rated premium will be refunded in accordance with the Central Provident Fund Board (Home Protection Insurance Scheme) Regulations upon the termination of your HPS cover. </li><li>The policies approved for exemption must remain in force and unchanged. The applicant or insurance company must inform the CPF Board immediately if any of the policies are discontinued or altered. The approved exemption may be revoked if the policies approved for exemption have been discontinued or altered. </li><li>If the exemption is revoked, the CPF Board may, if the applicant is still eligible to be covered under HPS, extend the HPS cover to the applicant, based on the percentage declared by the applicant in Part I of this application, subject to the CPF Board’s terms and conditions. </li><li>The applicant has to reapply for exemption if he wishes to be exempted from HPS after the CPF Board has revoked his exemption. </li></ol> <br> <p> </p><p> <span style="font-size:0.9em;">* 1) The sum assured of the policy would be reduced periodically in accordance with the policy term and interest rate stated in the policy contract. To use a MRTA/Decreasing Term policy to apply for exemption from HPS, the reducing sum assured must be sufficient to cover the outstanding housing loan, in the event of the applicant’s death, TI or TPD, until the end of the housing loan term or until the applicant turns age 65, whichever is earlier.<br> 2) The mortgage rate of a MRTA/Deceasing Term policy must be higher or equivalent to the assumed mortgage rate of the housing loan. For HDB concessionary loan, a mortgage rate of 3% is assumed. For HDB market rate loan and bank loan, a mortgage rate of 4% is assumed.</span></p>

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