Single Premium Home Protection Scheme (HPS)

Single Premium Home Protection Scheme (HPS)
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The Single Premium Home Protection Scheme is an older version of the Home Protection Scheme. While it has the same function – to protect against the inability to make monthly housing payments in the case of total permanent disability (TPD), terminal illness (TI), or death – the Single Premium Home Protection Scheme is the version that applies to those who were enrolled in HPS before 1 March 2001.

The Single Premium Home Protection Scheme cover lasts until the member is 55 or 60 (depending on the period they joined the scheme), whereas the most current HPS covers members until age 65. Furthermore, unlike the current HPS where premiums are paid annually, the Single Premium HPS was paid out in one lump sum upon enrollment.

If you were previously under the Single Premium Home Protection Scheme, you may want to switch over to the Annual Premium HPS (the current version) due to a variety of reasons. Specifically, there are only two cases where you are able to update your Single Premium Home Protection Scheme to the Annual Premium Home Protection Scheme.

The first is any changes to your housing loan, whether from the HDB or from a private bank (mortgagee). This includes any changes to the loan term or amount and also applies if you choose to refinance your loan. In this case, your Single Premium Home Protection Scheme coverage will be terminated, and you will be reissued with the Annual Premium Home Protection Scheme cover instead based on the updated terms. You may be required to submit an additional health declaration and will be evaluated based on the information that you have provided.

The second case is if your Single Premium Home Protection Scheme has come to an end (e.g. when you turn 55 or 60) but there is still an outstanding balance on your home loan. In this case, the Single Premium HPS will be converted to the Annual Premium HPS, and you will pay the premiums annually until you turn 65 or until the loan is repaid.

If you choose to change your share of cover (e.g., after speaking with your co-owner, whether increasing or decreasing), you will not need to change from the Single Premium Home Protection Scheme to the Annual Premium Home Protection Scheme. This assumes the housing loan itself (whether from HDB or a private mortgagee) has not changed its loan term period or amount. As before, you may need to submit an additional health declaration or undergo a medical examination to ensure that you are in good health. Once approved, your Single Premium HPS cover amount will be adjusted based on your declaration. Additional premiums may be warranted in this case.

Converting to the Annual Premium Home Protection Scheme

If you are converted to the Annual Premium Home Protection Scheme, your premiums will still be deducted from your CPF Ordinary Account. Your monthly housing payments will also still be deducted from your CPF accounts. Do ensure that there are sufficient funds in your accounts to make payments; the Home Protection Scheme premiums generally take priority over the monthly housing payments, and you have a two-month grace period in which you are able to pay for any outstanding premiums to ensure continued coverage.

You can also choose to be exempted from the Annual Premium Home Protection Insurance if you fulfil certain conditions – mainly that you will not need it anymore (because the loan has been paid off in its entirety or because you have private insurance that covers the same thing) or because your health precludes you from participating in the scheme.

Similarities to the Annual Premium Home Protection Scheme

In either case, the Single Premium Home Protection Scheme and Annual Premium Home Protection Scheme are otherwise quite similar and have similar processes. To file for claims or make adjustments, you can simply log into myCPF using your SingPass and fill out the relevant online forms before uploading supporting documentation and submitting them.

Benefit claims can also be made in the same way, except in the cases of death where information on how to file claims will be mailed to the member’s listed address with instructions on what to do.

Do note that as with the Annual Premium Home Protection Scheme, the Single Premium Home Protection Scheme will not pay out in the cases of suicide or self-harm resulting in TPD/TI. Furthermore, they will also not pay out if the member has committed a criminal act that has resulted in the death penalty, or has committed a crime that results in TPD, TI, or death otherwise. Claims will also not be approved and HPS coverage may be revoked if it was found that the member had lied or misled in their original application, especially in regards to the status of their health.

Need Help?

When it comes to housing, it is a big milestone in life. Should you be concerned on mortgage coverage or need advice in financial planning pertaining to mortgage, housing or just advice for the next phase in life, simply get in touch by filling up the form below and our financial advisor will get in touch with you soonest.

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