CPF members to enjoy lower premiums for home protection insurance

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Come 1 July 2018, about 510,000 CPF members covered by the Home Protection Scheme (HPS) will enjoy a reduction on their annual HPS premiums. This constitutes 95% of HPS members paying annual premiums while the rest will continue to enjoy the low premium rates they are currently paying. Three in four of these members will see reductions of 10% or more.


HPS is a mortgage-reducing insurance that protects CPF members and their families against losing their HDB flats in the event of death, terminal illness or total permanent disability before their housing loans are paid up. CPF members have to be insured under HPS if they are using CPF savings to pay for the monthly housing loan instalments of their HDB flats. Those who do not use their CPF savings to service their housing loans can also voluntarily apply to be insured under HPS.


The CPF Board conducts periodic reviews to ensure that HPS premiums remain affordable for CPF members. Through better than expected investment returns and claims experience, the Board is able to reduce the HPS premiums. This will allow members to continue to enjoy affordable home protection insurance for their HDB flats while maintaining the long-term sustainability of the Home Protection fund. The last premium reduction was conducted in 2012.


With the reduction in premiums, a male member aged 32 who is servicing a $200,000 housing loan from HDB for 30 years will pay a reduced annual premium of $183.20 instead of $215 (equivalent to a 15% reduction), when he joins the scheme from 1 July 2018.


Members who join the HPS scheme on or after 1 July 2018 will get to enjoy the new rates, while existing members paying annual HPS premiums will pay the reduced premiums when they renew or adjust their HPS coverage on or after 1 July 2018.


Members can check their CPF Statement of Accounts online in the month of the premium deduction for their new HPS premiums. Potential home-buyers can estimate the new HPS premiums using the HPS calculator on the CPF website from 1 July 2018.



Public enquiries


Members with enquiries may call the CPF Call Centre on 1800-227 1188 or email member@cpf.gov.sg.





About the Home Protection Scheme


Home Protection Scheme (HPS) is a compulsory mortgage-reducing insurance scheme to protect families of members who are using their CPF savings to service their housing loans for HDB flats, subject to them being in good health and payment of premiums. HPS premiums are determined by various factors including the outstanding loan amount, loan repayment period, type of loan (concessionary or market rate), gender and age of the member.


Members may use their CPF Ordinary Account savings to pay the annual insurance premiums. If members do not have sufficient Ordinary Account balance to pay the premium, members can top up their CPF Ordinary Account through various electronic channels or pay in cash at any Singapore Post branch office. Alternatively, family members (spouse/parent/child/sibling) who are co-owners may authorise the use of their CPF savings to pay the shortfall in the premium after the available balance from member’s account has been deducted. Members are covered for the period of the housing loan or until they reach the maximum cover age of 65, whichever is earlier.