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CPF MEMBERS TO ENJOY AVERAGE SAVINGS OF 12% ON ANNUAL PREMIUMS FOR HOME PROTECTION INSURANCE COVERAGE
   
News Release by:
Central Provident Fund Board
20 December 2011 --
   

Come 1 January 2012, about 362,500 CPF members who are paying annual Home Protection Scheme (HPS) premiums will enjoy average savings of 12% on their premiums. This constitutes 80% of members who are currently paying annual premiums for their HPS, while the rest will continue to enjoy the low premium rates they are currently paying.
 
  With the reduction, CPF members will pay significantly lower HPS premiums. For example, a male member aged 36 years old who is servicing a $150,000 housing loan from HDB for 25 years, will pay a lower premium of $195.30 instead of $223.05 (equivalent to a 12% discount), when he joins the scheme from 1 January 2012.
 
  Members who join the HPS scheme on or after 1 January 2012 will get to enjoy the new rates, while existing members paying annual HPS premiums will pay the lower premiums when they renew or adjust their HPS coverage on or after 1 January 2012.
 
  Existing members who are eligible for the lower premium rates1 will be notified via letters from the CPF Board upon successful payment of their next premium due on or after 1 January 2012. Members can also check their new HPS premiums from their online CPF Statement of Accounts in the month of premium deduction by logging in with their Singpass to the CPF website. Potential home-buyers can estimate the new HPS premiums on the HPS calculator on the CPF website from 1 January 2012.
 
  1 Only members who enjoy lowered premiums of $5 or more would be informed by letters from the CPF Board.
 
Public Enquiries
Members with enquiries may call the CPF Call Centre on 1800-227 1188 or email insurance@cpf.gov.sg

 
Annex
 
  About the Home Protection Scheme
 
  Home Protection Scheme (HPS) is a compulsory mortgage-reducing insurance scheme to protect families of members who are using their CPF savings to service their housing loans for HDB flats, subject to them being in good health and payment of premiums. HPS premiums are determined by various factors including the outstanding loan amount, loan repayment period, type of loan (concessionary or market rate), gender and age of the member.
 
  HPS provides financial protection for members and their families against losing their homes in the event of the insured members’ permanent incapacity or death. Members may use their CPF Ordinary Account savings to pay the insurance premiums. If members do not have sufficient Ordinary Account balance to pay the premium, members can top up their CPF Ordinary Account through various electronic payments, pay in cash at any Singapore Post branch office, or opt to use their spouse’s CPF savings, if the latter is a joint owner. They are covered for the period of the housing loan or until they reach the maximum cover age of 65, whichever is earlier.
 
  HPS started as a single premium mortgage term insurance in 1981. Annual premiums, which spread premium payments over the term of housing loans, were introduced on 1 March 2001. Since then, single premium HPS was discontinued.
 
  As at 31 October 2011, the HPS covers 453,109 Annual Premium members and 176,436 Single Premium members, with a total sum assured of $91.6 billion. Between 1 January 2011 to 31 October 2011, a total of 893 claims amounting to $75.69 million were approved. This comprised 594 claims for death cases and 299 for permanent incapacity cases.
 
  Click here to view the news report on Channel News Asia.
 
 

 Last Updated on: Saturday, December 24, 2011 at 5:30 PM
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