CPF members to pay lower contribution for home protection insurance

About 510,000 CPF members will be covered by the said reduction in HPS premiums.

Three in four Central Provident Fund (CPF) members will pay 10% lower for their annual Home Protection Scheme (HPS) by July. About 510,000 CPF members will be covered by the said reduction in HPS premiums, an announcement revealed.

According to the government agency, the investment returns and claims which were better than expected made them reduce the HPS premiums.

“With the reduction in premiums, a male member aged 32 who is servicing a $200,000 housing loan from the Housing and Development Board for 30 years will pay a reduced annual premium of $183.20 instead of $215 (equivalent to a 15% reduction), when he joins the scheme from 1 July 2018,” CPF explained.

The new rates will apply for those who will join the HPS scheme on or after 1 July. Meanwhile, existing members will experience the reduced premiums when they renew or adjust their HPS coverage starting July.

Also read: CPF scheme funds lost 1.65% in Q1

CPF statement of accounts are available online. Potential home-buyers can also use the HPS calculator on the website to estimate new HPS premiums.

According to the agency, the last premium reduction was conducted in 2012.

HPS is a mortgage-reducing insurance that protects CPF members and their families against losing their HDB flats in the event of death, terminal illness or total permanent disability before their housing loans are paid up.