By MoneyBees
Home Protection Scheme cover for an HDB flat: your minimum share of cover, the sum assured, when cover ends and how many years you pay premiums, with CPF's own premium example.
The Home Protection Scheme is a mortgage-reducing insurance run by CPF Board. It pays off the HDB flat's outstanding housing loan if the insured member dies, becomes terminally ill or is totally and permanently disabled.
Yes, if you use CPF savings to pay your monthly HDB flat instalments. If you pay in cash it is not required, but CPF encourages it. It does not cover ECs, privatised HUDC flats or other private homes.
Your share of cover must at least match the part of the monthly instalment you pay with CPF or cash, and the owners' shares must add up to at least 100%. Each owner can take up to 100%.
It depends on the outstanding loan, the repayment period, HDB or market rate, your age and sex, and your share of cover. CPF's example: a man aged 36 with a S$200,000 HDB loan over 30 years pays S$209.40 a year. CPF's calculator gives your own figure.
For 90% of the cover period. If you are covered for 30 years, you pay premiums for 27 years. The premium is deducted yearly from your OA.
At 65, when the housing loan is fully repaid, or when you sell the flat, whichever comes first. If you repay a bank loan in cash, write to CPF to end the cover.
Yes, if the policy covers death, terminal illness and total permanent disability for the outstanding loan to the end of its term or age 65. Your insurer applies to CPF for the exemption.
CPF pays HDB or the bank directly to settle the loan, by your share of cover, up to the sum assured. Any amount above the outstanding loan goes to your OA.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).