By MoneyBees
See the cover your home loan needs each year, how reducing and level term cover track it from your own quotes, any gap, and where CPF's Home Protection Scheme fits for HDB flats.
Life cover that pays off your home loan if you die, become terminally ill or are totally and permanently disabled. HDB owners paying with CPF are covered by CPF's Home Protection Scheme; other owners buy private cover such as mortgage reducing term assurance or a level term policy.
Yes, if you own an HDB flat and pay the monthly instalments with CPF savings, unless CPF exempts you. If you pay in cash, CPF strongly encourages it. HPS covers you to age 65 or until the loan is paid, whichever is earlier.
No. HPS does not cover private residential property, including executive condominiums and privatised HUDC flats. For those loans, cover is private insurance.
A reducing (decreasing) term policy's sum assured falls over the term and reaches zero at the end. A level term policy keeps the same sum assured throughout. With level cover, once the loan is lower the extra goes to your family. Compare the premiums on your own quotes.
Yes. Its sum assured falls on a schedule set when you buy it. If your loan's actual interest rate is higher than the rate that schedule assumes, the loan falls more slowly than the cover. Refinancing to a higher rate can have the same effect.
Yes. Whole life, term, endowment, life riders and mortgage reducing term policies can be used if together they cover the outstanding loan against death, terminal illness and total permanent disability until the loan ends or you turn 65. Apply through your insurer.
In full, into your Ordinary Account, if CPF receives the exemption application within one month of your HPS cover being issued. Otherwise the refund is pro-rated when the cover ends.
HPS cover ends at 65. CPF suggests private cover for any loan that will only be paid up after you turn 65.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).