Last updated: September 2026 | SeaMoneyTips
- Cover period ends at age 65, or earlier if the housing loan is fully repaid.
- Premiums are paid in full from your CPF Ordinary Account (OA) and deducted annually.
- Members who use CPF savings to pay monthly HDB instalments must apply for HPS.
- In January 2020, the CPF Board distributed S$640 million in HPS premium rebates to over 760,000 members.
What the Home Protection Scheme Actually Covers
HPS is not a general home insurance policy. It is mortgage-reducing insurance tied specifically to your HDB flat and the housing loan attached to it. When a valid claim is made, the payout goes to settling the outstanding housing loan directly with HDB or the mortgagee, up to the insured sum.
Three events trigger a payout: death, terminal illness, and total permanent disability. Terminal illness means an illness that is likely to cause death within 12 months. Total permanent disability covers two situations, either the inability to take up any employment permanently, or the total permanent loss of physical function of both eyes, two limbs, or one eye and one limb.
The practical effect is simple. If the insured owner passes away or becomes permanently disabled, the surviving family does not inherit a housing loan they cannot service, and the flat stays with the household. According to the CPF Board, this protection applies until the member turns 65 or until the housing loan is paid up, whichever happens first.
Who Needs HPS and Who Can Join Voluntarily
HPS eligibility turns on how you pay for your flat, not on your age alone. There are three broad groups.
Members who must apply
If you use CPF savings to pay the monthly housing loan instalments on your HDB flat, you have to apply for HPS cover. This applies whether you are buying your first flat or your next one. The same obligation covers co-owners who use their own CPF savings for their share of the instalments.
Members who can apply voluntarily
If you service your housing loan fully in cash, HPS is not compulsory. You can still choose to apply through the CPF website. For many cash-paying owners this is worth considering, because the premium structure is designed to be affordable relative to private mortgage insurance.
Health is the gatekeeper
Beyond ownership and payment method, health determines whether you can be covered. You may be asked to undergo a medical examination, or to submit a medical report from your attending doctor, when you apply for or adjust your HPS cover. Declaring your health condition accurately is essential. Cover obtained on false or misleading information can be voided at any time, claims can be denied, and premiums already paid may not be refunded.
How Much Cover You Should Take
The insured sum is not a fixed number. It is built from your share of the housing loan, and the CPF Board expects that share to be matched.
The rule of thumb is that your share of the HPS cover should at least match the proportion of the monthly housing instalment you are paying, counting both CPF savings and cash. If you pay 60 percent of the monthly instalment and your partner pays the remaining 40 percent, your HPS cover should sit at roughly 60 percent of the loan.
Where this gets underestimated is in the next few years. Many owners buy a flat on a 25-year loan while their income is still rising, then take on a bigger share of the instalments after a refinancing or a change in income. Because HPS cover is tied to the loan amount and loan period, any increase in cover is usually subject to you being in good health at the time. Reviewing your share before the loan changes is far easier than trying to raise it after a health event.
It also helps to understand what happens at 65. If your housing loan is genuinely paid up by then, cover ending is not a problem. If the loan still runs past 65, HPS ends while the loan remains. That gap is where private mortgage insurance or another form of cover becomes relevant. If you are planning a mortgage reset, our guide to Singapore mortgage refinancing explains how the loan term and outstanding balance change after refinancing.
Premiums and How They Are Paid
HPS premiums are paid in full using OA savings and are deducted automatically once a year. There is no monthly deduction and no cash top-up requirement. If your OA balance cannot cover the annual premium, the CPF Board notifies you rather than silently lapsing the policy.
A spouse, parent, child, or sibling who co-owns the flat with you can also authorise the Board to use their OA savings to cover a premium shortfall. That option exists specifically to keep cover continuous when one owner's OA is thin, and it is underused.
Because premiums vary by age, gender, loan amount, and loan period, the reliable way to plan is to use the official HPS premium calculator rather than a generic insurance quote. The CPF Board notes that HPS premiums are among the lowest available for this type of cover, which matters because HPS is compulsory for members using CPF savings.
One detail worth knowing: HPS has historically been run on a pooled basis, and surpluses have been returned to members. In January 2020, the CPF Board distributed S$640 million in premium rebates to over 760,000 eligible members, with about half receiving S$500 or more. The rebate lands in your OA and can be used for future HPS premiums or other CPF-approved purposes.
HPS vs HDB Fire Insurance vs Contents Insurance
These three are frequently confused, and the confusion leads to real coverage gaps. They protect different things and cannot substitute for each other.
| Policy | What it protects | Compulsory? |
|---|---|---|
| Home Protection Scheme (HPS) | Outstanding HDB housing loan, on death, terminal illness, or total permanent disability | Yes, if CPF savings are used for instalments |
| HDB Fire Insurance | The flat structure and fixtures damaged by fire | Yes for HDB flats with an outstanding loan |
| Home Contents Insurance | Furniture, appliances, renovations, and personal belongings | No, optional |
The clean way to think about it is this. HPS protects the loan. Fire insurance protects the building. Contents insurance protects the things inside the building. A household with only Home Protection Scheme cover could still face a full bill for renovation, appliances, and personal property after a fire.
If you are still working through your flat purchase, our walkthrough of the Singapore HDB grant guide covers how grants reduce the loan amount you actually need to insure, and the HDB BTO income ceiling guide explains who qualifies to buy in the first place.
How to Make an HPS Claim
The claim process differs by trigger, and the CPF Board handles the death claim with very little action required from the family.
Death claim
When the CPF Board is notified of a member's death by the Immigration and Checkpoints Authority, it automatically assesses the deceased member's claim eligibility. There is no form for the family to submit to start the process. The Board then informs the co-owner or next of kin of the outcome, and requests additional information only if needed. Once approved, the outstanding loan is paid directly to the mortgagee.
Claim on medical grounds
Terminal illness and total permanent disability claims are made through an application on medical grounds. One important timing detail: a claim under total permanent disability can only be made if the total permanent loss of physical function started on or after 1 May 2016, and terminal illness claims apply where the illness started on or after the same date.
Exclusions to know
Claims are not payable if they arise from excluded pre-existing conditions stated in the HPS certificate. In the first policy year, claims are also not payable where the member committed self-inflicted injury or suicide, committed a criminal offence punishable by death, or where the claim arose from the member's own intentional criminal act. General exclusions include false or misleading information, and claims arising from war or warlike operations.
A full breakdown is published on the CPF Board's HPS claims page.
Can You Be Exempted from HPS?
Yes, but the bar is specific. A member may apply for exemption only after obtaining legal ownership of the property, or after the housing loan has been disbursed.
The core requirement is that you already hold an appropriate insurance policy that would clear the housing loan on death, terminal illness, or total permanent disability, running until the end of the loan term or age 65, whichever is earlier. That policy must offer coverage at least equivalent to HPS.
Not every policy qualifies. Acceptable types include whole life policies, level term or renewable level term policies, endowment policies, and mortgage reducing term assurance. The policy must be portable, meaning it cannot depend on your employment or membership status, it must be priced in Singapore dollars, and the insurer must be licensed by the Monetary Authority of Singapore. You must also be both the owner and the life insured.
Policies that will not qualify include those assigned or pledged as collateral, policies held under an irrevocable nomination or trust arrangement, policies with loans attached, non-life policies such as fire, home contents, or personal accident cover, and group policies that are not portable. The CPF Board lists the full criteria under HPS exemption guidelines.
Common Mistakes Property Owners Make
- Mismatching cover to instalment share. Two co-owners who both insure the full loan pay for cover they do not need, while one owner insuring too little leaves a gap.
- Assuming HPS replaces fire insurance. HPS covers the loan, not the flat or its contents.
- Forgetting the age 65 cutoff. A loan that extends past 65 leaves an uninsured period.
- Overlooking premium shortfalls. If OA funds run low, authorise a co-owner to cover the shortfall instead of letting cover lapse.
- Under-declaring health conditions. This is the most expensive mistake, because it can void your Home Protection Scheme cover entirely.
Members approaching the end of HPS cover often need to rebuild protection elsewhere. Our CareShield Life Singapore guide covers long-term care cover, and the CPF Ordinary Account withdrawal rules explain what OA funds can be used for once housing instalments stop.
Related reading: Home Insurance Singapore 2026: HDB Fire Insurance vs Contents Cover. HPS covers the mortgage, while fire insurance covers the flat itself.
Frequently Asked Questions
Is the Home Protection Scheme compulsory in Singapore?
HPS is compulsory if you use CPF savings to pay the monthly housing loan instalments on your HDB flat. If you service the loan fully in cash, you may apply for HPS voluntarily. Cover is subject to your health status at application.
When does HPS cover end?
HPS cover ends when you turn 65, or when your housing loan is fully paid, whichever comes first. If your loan still runs past 65, you would need separate cover for that remaining period.
What events does HPS pay out for?
HPS pays for death, terminal illness, and total permanent disability. The payout settles the outstanding housing loan up to the insured sum and is paid directly to HDB or the mortgagee.
Is HPS the same as HDB fire insurance?
No. HPS protects the housing loan. HDB fire insurance protects the flat structure and fixtures against fire damage. Home contents insurance, which covers renovation and belongings, is separate and optional.
How are HPS premiums paid?
Premiums are paid in full from CPF Ordinary Account savings and deducted annually. A co-owning spouse, parent, child, or sibling can authorise the CPF Board to use their OA savings to cover any shortfall.
Can I be exempted from HPS?
Yes, if you hold an acceptable life insurance policy that would clear the housing loan on death, terminal illness, or total permanent disability, with coverage at least equivalent to HPS. The policy must be portable, priced in Singapore dollars, and issued by a MAS-licensed insurer.
What happens if I do not declare a health condition?
HPS cover obtained on false or misleading information can be voided at any time, claims can be denied, and premiums already paid may not be refunded. Always declare your health condition accurately when applying.
Home Protection Scheme Key Takeaways
- HPS is mortgage-reducing insurance that clears your HDB loan on death, terminal illness, or total permanent disability.
- Cover runs until age 65 or until the loan is repaid, whichever is earlier.
- Premiums come from your CPF Ordinary Account and are deducted once a year.
- Your share of the cover should match your share of the monthly instalment.
- HPS, fire insurance, and contents insurance cover three different things.
- Exemption is possible, but only with a qualifying life policy that meets CPF Board criteria.
Conclusion
HPS is one of the quietest pieces of protection in a Singapore household budget, and one of the most consequential. It costs nothing in cash, it is deducted from savings you already have, and it removes the single largest risk a young family carries after buying a flat, which is an unpaid mortgage. The work on your side is small but real: keep your insured share aligned with your instalment share, top up shortfalls instead of letting cover lapse, and plan separately for the period after 65 if your loan runs long. Review your cover details with your co-owners once a year, and treat any change to your loan as a trigger to check whether your HPS cover still matches.
Sources: CPF Board, Protecting against losing your home, CPF Board, 3 benefits of the Home Protection Scheme, and CPF Board, Important notes on HPS.
Related: HDB Grant Singapore 2026 | Buy vs Rent in Singapore 2026 | Property Loan Stamp Duty 2026
This article was written by the SeaMoneyTips Editorial Team, focused on personal finance education for Indonesia and Singapore readers. For inquiries, please contact us.
Disclaimer: This article is for general information and education only. It is not financial or insurance advice. Coverage terms, premiums, and eligibility are set by the CPF Board and may change. Always verify details at cpf.gov.sg before making a decision.