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Frequently Asked Questions (FAQs) on Distribution of Home Protection Scheme (HPS) Surplus & Lowering of Annual Premium Rates
 

The Board announced through press release on 20 Jun 06 that it will distribute HPS surplus and lower annual premium rates in Jul 2006. The following FAQs provide you with more details of this exercise.

Distribution of Home Protection Scheme (HPS) Surplus

  1. Why is the Board distributing HPS surplus? 
  2. How will the Board distribute the surplus? 
  3. Who are eligible to receive the rebates? 
  4. How do I know if I am eligible for the rebate and how much rebate will I receive?
  5. My HPS premium was partially paid by my spouse previously. Will the rebate be credited to my or my spouse's Ordinary Account?
  6. Do I need to do anything to receive the rebate?
  7. I have made a claim and received the HPS benefits on grounds of permanent incapacity (PI). Am I eligible for the rebate?
  8. If the insured member has passed away, will he/she still receive the rebate?
  9. Can I withdraw the rebate in cash? 

Lowering of Annual Premium Rates

  1. I am an existing HPS member paying annual premiums, will I benefit from the lower annual premium rates?
  2. I am an existing HPS member but I have already fully paid my premiums, am I affected by the extension of the payment term from 80% to 90%?
  3. How much is the reduction in my annual premium?
  4. I am buying a flat soon and will be taking up a HPS cover, will the lower HPS premium rates apply to me?
  5. Won't I be disadvantaged if my HPS cover commences before 1 Jul 06 as I will be paying the higher premium rates?
  6. What will happen to my existing HPS cover if I adjust my housing loan after 1 Jul 2006?

 

Distribution of Home Protection Scheme (HPS) Surplus

1. Why is the Board distributing HPS surplus?

It has been the Board's practice to distribute surplus to HPS members whenever it can do so because the Board's operation of the scheme is not profit-oriented. This is the fourth time the Board is returning surplus to HPS members, having done so three times in the past in 1986, 1989 and 1997.

2. How will the Board distribute the surplus?

The Board will distribute the surplus to eligible HPS members in the form of rebates which will be credited to their Ordinary Accounts on 1 Jul 06.

3. Who are eligible to receive the rebates?

About 950,000 HPS members will benefit from this exercise which comprises about 325,000 existing Single Premium (SP) members, 285,000 past SP members who were insured under the scheme from November 1997 (i.e. after the last surplus distribution) and 340,000 existing Annual Premium (AP) members.

4. How do I know if I am eligible for the rebate and how much rebate will I receive?

If you are eligible for the rebate, you will be notified in writing in the last week of Jun 2006. The letter will also inform you of the amount of rebate you will receive. You can also check the rebate online by viewing your Statement of Accounts via CPF website (www.cpf.gov.sg) using your SingPass. The rebate will form part of yor Ordinary Account savings which can be used for any of the CPF approved schemes, such as housing and investment.

5. My HPS premium was partially paid by my spouse previously. Will the rebate be credited to my or my spouse's Ordinary Account?

The rebate given on your HPS cover will be credited to your spouse's Ordinary Account up to the amount of premium which he/she had previously paid. The balance of the rebate will then be credited to your Ordinary Account.

6. Do I need to do anything to receive the rebate?

No, you do not need to do anything. The rebate will be automatically credited to all eligible HPS members' Ordinary Accounts on 1 Jul 06.

7. I have made a claim and received the HPS benefits on grounds of permanent incapacity (PI). Am I eligible for the rebate?

No, you will not be eligible for the rebate as you have already received the HPS claim benefits.

8. If the insured member has passed away, will he/she still receive the rebate?

No, the insured member will not be eligible for the rebate if he/she has passed away.

9. Can I withdraw the rebate in cash?

You can withdraw the rebate if you are 55 and above and meet the withdrawal conditions. Please click here for the withdrawal conditions. Click here to apply to withdraw your CPF online.

Lowering of Annual Premium Rates

1. I am an existing HPS member paying annual premiums, will I benefit from the lower annual premium rates?

Yes, the lower annual premium rates will apply when you next pay your premium due on or after 1 Jul 06. You may wish to note that the premium payment term for HPS has been extended from 80% to 90% of the cover period. This will apply to you when you renew your cover. The extension of payment term benefits HPS members as they will now pay the total premiums over a longer period, which allows the annual premiums to be reduced further and made more affordable.

Although you will be paying premiums for a slightly longer period (for example, the extension is 1 year for a 10 year loan and 3 years for a 30 year loan), you will enjoy a reduction in total premium paid over the cover period after taking into account both the rebate given to you and the lower premium rates. The majority of HPS members will enjoy both a reduction of between 10% and 35% in total premium payable from this exercise.

2. I am an existing HPS member but I have already fully paid my premiums, am I affected by the extension of the payment term from 80% to 90%?

No, you will not be affected. If you have already fully paid your premiums, you will not be required to pay any more premiums. However, you will still be eligible for the HPS rebate.

3. How much is the reduction in my annual premium?

You will be notified in writing of the change in your annual premium payable and the rebate you will receive in the last week of Jun 2006.

4. I am buying a flat soon and will be taking up a HPS cover, will the lower HPS premium rates apply to me?

The new premium rates take effect from 1 Jul 06. You will be paying the lower HPS premiums if your cover commences on or after 1 Jul 06.

5. Won't I be disadvantaged if my HPS cover commences before 1 Jul 06 as I will be paying the higher premium rates?

No, you will not be disadvantaged. As an existing member joining the scheme before 1 Jul 06, you will receive a rebate which will offset the higher rate you have paid earlier.

6. What will happen to my existing HPS cover if I adjust my housing loan after 1 Jul 2006?

Your HPS cover will be adjusted according to your loan repayment and/or loan amount. A new HPS cover based on the terms of your new loan will be issued to you. You will pay the new premium rates for your new HPS cover. Details will be shown in the new HPS certificate issued to you.

 Last Updated on: Thursday, June 30, 2011 at 5:48 PM
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