27 Mar 2026
SOURCE: CPF Board
Buying a home is an important financial commitment, so it’s only natural to have your bases covered. Like buying health insurance for your healthcare needs, protecting your home with home insurance is also important, so that you don’t lose it in case the unexpected happens. That’s where the Home Protection Scheme (HPS) comes in.
The HPS is a mortgage-reducing insurance that protects you and your loved ones from losing your HDB flat in the event of death, terminal illness, or total permanent disability. If you are paying for your HDB flat using your CPF savings or cash, it will insure you until you turn 65, or until your housing loans are paid up, whichever occurs first. If you are using your CPF savings to pay for your housing loan, you would need to apply for the HPS whether it is for your first or next flat.
The first benefit, and the primary purpose of the HPS as home insurance, is to protect your flat in case the unexpected occurs. The sum assured will be paid in the event of death, terminal illness, or total permanent disability, and will go towards taking care of the housing loan repayments. What this means for you is that your loved ones will not have to worry about keeping up with your share of the loan repayments, so there is no risk of losing the flat. This in turn gives you and your loved ones peace of mind.
In addition, in the event of an outstanding mortgage settlement claim, HPS will settle the outstanding housing loan up to the insured sum, with HDB or the mortgagee directly. Do note that your HPS cover ends at age 65.
The HPS comes with one of the lowest premiums on the market for home insurance. This helps since you’re required to be covered under HPS if you are using CPF savings to pay your monthly housing instalments. But even if you are paying cash for your housing loan, you can still choose to be covered under HPS by applying via the CPF website. When planning your finances, you can use the HPS premium calculator to estimate your annual premiums to factor into your calculations.
HPS premiums are payable in full with OA savings, and will be automatically deducted from your CPF annually. Even if there are insufficient funds in your OA, you will be notified.
Your spouse, parent child or sibling who co-owns the flat with you can also authorise the Board to use their OA savings to pay your premium shortfall. This ensures that there will be no lapses in your coverage.
Beyond owning a HDB flat and paying for it with your CPF savings or cash, another factor that determines your eligibility is your health. To prove that you are in good health, you might be required to undergo a medical examination. You may also be requested to submit a copy of the medical report from your attending doctor for this purpose when applying for HPS cover via the CPF website.
As HPS is a form of home insurance, your eligibility for HPS cover is subject to your health status. Thus, it’s important to truthfully declare your health condition, as any HPS cover provided based on false or misleading information can be voided at any time, and such insurance claims will be denied. In this case, premiums paid (if any) won’t be refunded.
In addition, if you are buying with a partner, your share of the HPS cover should at least match the proportion of the monthly housing instalment you are paying for, whether via the use of your CPF savings and/or cash. For example, if you pay 60% of the monthly housing instalment and your partner pays 40% of it, your share of the HPS cover should also roughly be at 60.
As a higher share of cover results in a higher annual premium being deducted from your OA, it’s important to factor that into your calculations when deciding the share, as it may have an impact on your retirement savings as well.
Use the HPS premium calculator to calculate your premiums when planning your finances for a smoother home buying process ahead.
The information provided in this article is accurate as of the date of publication.
