How is the Home Protection Scheme premium calculated?
The Home Protection Scheme charges a level premium rate (i.e. same amount annually throughout the policy term) and is calculated based on several factors:
- Outstanding housing loan on the flat*
- Loan repayment period
- Type of loan (HDB concessionary or market rate)
- Age and gender
- Percentage share of cover of the outstanding housing loan
*The computation of the level premium takes into account the monthly reduction in the housing loan.
Premiums are generally higher for greater share of coverage, larger loan amounts, or longer repayment periods. The premiums would be lower for younger persons and females, due to lower mortality risk.
