One of my missions of starting this finance blog is to share with readers some useful tips on financial matters. In relation to one of my previous articles, a reader has raised a very good question on Home Protection Scheme (HPS). So today, I am going to share some information pertaining to how you can apply for exemption from HPS.
First of all, HPS is compulsory if you are using your CPF savings to pay your monthly housing loan installments on your HDB flat. Of course, there are some residents who are cash rich and do not use their CPF savings to pay their HDB mortgage payments. For this group of people, HPS is not compulsory.
But assuming you are using your CPF savings to service monthly HDB loan and would like to apply for exemption from HPS, then you may apply to CPF Board for exemption.
Most people thought that they should write to HDB when applying for exemption of HPS. The confusion is probably because when applying for coverage under HPS for HDB loan, you can apply for HPS cover at HDB Hub or any HDB branch office when you are applying to use your CPF for the monthly housing instalment.
But before you rush into applying for HPS exemption, there are some important things to consider carefully. After all, our home is one of the most important assets and a responsible wealth builder would ensure that their wealth is protected sensibly.
An important thing to note is that HPS is a mortgage reducing term insurance plan. What this means is that over the years, the sum assured, and not the premiums to be paid, would be reduced. And then there are the term life policy, which provides a fixed sum assured throughout the coverage period. Due to the difference on the sum assured, the cost of mortgage reducing insurance is usually [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
Read my other articles on CPF:
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