How can I be granted an exemption from the Home Protection Scheme?
Home Protection Scheme (HPS) exemption can only be granted if the applicant has appropriate, in-force private insurance policies that are sufficient to cover the outstanding housing loan (till end of the loan term) in the event of the applicant's death, terminal illness or total permanent disability, or age 65, whichever is earlier.
The types of life insurance policies (both traditional and investment-linked) that are acceptable for HPS exemption are:
Life Riders (must be attached to a basic policy), and
Mortgage Reducing Term Assurance (MRTA) / Decreasing Term Rider
The types of policies that are NOT acceptable for HPS exemption are:
Policies that are assigned or pledged as collateral
Policies under Section 73 of the Conveyancing Law And Property Act (Cap 61) or under irrevocable nomination/trust arrangement
Policies with loans attached
Non-life insurance policies, such as business insurance policies, legacy insurance policies, health insurance policies or general insurance policies (e.g. personal accidental, fire or home contents policies)
Policies that are priced in foreign currencies
Policies from insurance companies that are not licensed by the Monetary Authority of Singapore, and