Home Protection Scheme (HPS) Singapore
The CPF-Linked Insurance That Pays Off Your HDB Loan If You Can’t
The Home Protection Scheme (HPS) is a mortgage-reducing term insurance administered by the CPF Board that pays off the outstanding balance of a member’s HDB housing loan if the insured member dies, is diagnosed with a terminal illness, or becomes totally and permanently disabled, so surviving family members can continue living in the flat without loan repayment pressure.
Not financial advice. All figures for educational reference only. Data as at July 2026. Last updated: July 2026.
Key Takeaways
- HPS is mandatory for HDB flat owners who use CPF Ordinary Account (OA) savings to service their housing loan, and premiums are deducted automatically from the OA each year.
- Coverage decreases over time in step with your outstanding loan balance — for a couple aged 30 with a S$400,000 loan, combined annual premiums run around S$272 in 2026, roughly S$23 a month.
- You only pay premiums for about 90% of your loan tenure — on a 30-year loan, that’s typically 27 years of premium payments, not the full term.
- HPS cover is split proportionally between co-owners; if you own 50% of the flat, your HPS share covers 50% of the outstanding loan.
- HPS is significantly cheaper than most private mortgage-reducing insurance because it’s a not-for-profit, CPF Board-administered scheme designed to cover HDB loans specifically.
What Is Home Protection Scheme (HPS) Singapore?
The Home Protection Scheme (HPS) is a decreasing term life and disability insurance scheme created specifically to protect Singapore households from losing their HDB flat due to an unexpected death, terminal illness, or total permanent disability of a loan-servicing family member. It is administered by the CPF Board, not a private insurer, and was designed as a public good to complement Singapore’s home ownership policy — the government’s long-standing view is that a family should not be at risk of losing its home over a single tragic event.
HPS is mandatory for any HDB flat owner who uses CPF Ordinary Account savings, rather than cash, to service their monthly HDB loan instalments. If you finance your HDB flat entirely with cash and never touch your CPF OA for the mortgage, HPS is not compulsory, though many owners opt in anyway for the low-cost protection. Coverage is “mortgage-reducing,” meaning both the sum assured and the premium shrink each year in step with your outstanding loan balance — unlike a level-term life policy, HPS is never designed to leave a lump sum beyond what’s needed to clear the loan.
HPS should not be confused with the Dependants’ Protection Scheme (DPS), which is separate CPF-linked term life cover unrelated to any specific loan, or with private mortgage-reducing insurance offered by insurers such as Great Eastern or AIA, which HDB and bank loan holders can choose instead of or alongside HPS depending on their loan type.
How Does It Work in Singapore?
HPS premiums are calculated annually based on your outstanding loan amount, your age, and your health declaration, then deducted automatically from your CPF Ordinary Account each year — no manual renewal or cash payment is required in most cases. Because the scheme is “mortgage-reducing,” the insured sum matches your projected outstanding loan balance for that policy year, so both your premium and your coverage amount fall progressively as you pay down the loan.
A key mechanic often missed by first-time flat owners: you don’t pay premiums for the full loan tenure. HPS is structured so that premiums are only collected for approximately 90% of your loan period — for example, across a 30-year loan, you’d typically pay premiums for around 27 years, with the final years of the loan effectively premium-free since the outstanding balance (and therefore the insurance need) has shrunk close to zero.
If you co-own your flat, HPS cover is split according to your ownership share. A married couple who are joint tenants or tenants-in-common at 50/50 will each be separately covered for 50% of the outstanding loan; if one spouse dies or becomes disabled, HPS pays off their 50% share, leaving the surviving spouse to continue servicing (or refinance) the remaining half.
Illustrative HPS Premiums, 2026
| Profile | Loan Amount | Approx. Combined Annual Premium |
|---|---|---|
| Couple, both age 30 | S$400,000 | ~S$272/year (~S$23/month) |
| Single owner, age 35 | S$300,000 | Higher than a shared-couple policy at the same loan quantum, since one person bears full cover |
| Couple, both age 45 | S$400,000 | Materially higher than the age-30 couple, since HPS premiums rise with age |
Source: CPF Board Home Protection Scheme premium calculator and Dollar Bureau’s 2026 HPS guide. Use the official CPF HPS Premium Calculator on cpf.gov.sg for your exact figures, since premiums depend on age, loan amount, and health status.
Home Protection Scheme (HPS) Singapore Example
Consider Aisha and Daniel, both 30, who jointly own an HDB flat with a S$400,000 outstanding loan, financed partly through their CPF OA. Their combined HPS annual premium comes to roughly S$272 (about S$23 a month), deducted automatically from their OA balances each year with no cash outlay required. In year one, HPS covers S$400,000 split 50/50 — S$200,000 each.
Three years later, tragedy strikes: Daniel is diagnosed with a terminal illness. Because their combined outstanding loan balance has fallen to roughly S$378,000, HPS pays out Daniel’s 50% share (around S$189,000) directly to HDB to clear his portion of the loan. Aisha is left to service only her remaining 50% share going forward — his share of the mortgage is fully discharged, meaning she isn’t left holding the entire S$378,000 balance alone while managing a family crisis. Without HPS, she would have needed a separate, likely more expensive, private mortgage insurance payout or personal savings to achieve the same protection.
Advantages of Home Protection Scheme (HPS) Singapore
- Extremely low cost relative to coverage. At roughly S$23/month for S$400,000 of cover on a young couple, HPS is materially cheaper than most private mortgage-reducing insurance of similar size.
- Zero cash outlay for most owners. Premiums are deducted automatically from CPF OA, so there’s no separate bill to remember or budget for in cash.
- Shorter effective payment period. Paying premiums for only ~90% of the loan tenure means the final years of the mortgage carry no additional insurance cost.
- Purpose-built for HDB loans. Because HPS is designed exclusively around HDB loan structures, there’s no mismatch between what’s insured and what you actually owe.
- Proportional co-owner coverage. Splitting cover by ownership share means each co-owner’s protection is fairly sized to their actual liability, rather than an all-or-nothing policy.
Risks and Limitations
- Coverage shrinks as the loan shrinks. Because HPS is mortgage-reducing, it provides no protection beyond clearing the outstanding loan — it isn’t a source of extra funds for your family’s other expenses.
- Health declarations can affect eligibility or pricing. Owners with pre-existing conditions may face loading or, in some cases, restricted cover, similar to private insurance underwriting.
- Doesn’t cover cash-financed loans by default. If you service your HDB loan entirely in cash, HPS isn’t automatically compulsory, and some owners mistakenly assume they’re covered when they’re not.
- Not a substitute for broader life insurance. HPS only protects the mortgage — it doesn’t replace income, cover other debts, or fund dependants’ living expenses, which is why many households pair it with a separate term life policy or DPS.
- Premiums rise with age at enrolment. Owners who buy or upgrade a flat later in life face materially higher HPS premiums than those who lock in cover at a younger age.
Home Protection Scheme (HPS) vs Private Mortgage Insurance
| Aspect | Item | Detail |
|---|---|---|
| Administrator | HPS | CPF Board (public, not-for-profit) |
| Administrator | Private mortgage insurance | Commercial insurer (e.g. Great Eastern, AIA) |
| Eligible Loans | HPS | HDB housing loans only |
| Eligible Loans | Private mortgage insurance | HDB and bank/private property loans |
| Premium Payment | HPS | Auto-deducted from CPF Ordinary Account |
| Premium Payment | Private mortgage insurance | Usually cash or CPF, insurer-dependent |
| Typical Cost | HPS | Generally lower for equivalent HDB loan cover |
| Mandatory? | HPS | Yes, if servicing HDB loan with CPF OA |
The Bottom Line
For most HDB flat owners using CPF to service their mortgage, the Home Protection Scheme is a low-cost, purpose-built safety net that ensures a death, terminal illness, or total permanent disability doesn’t cost the family their home. It’s not a replacement for broader life insurance, but as a mortgage-specific backstop, HPS delivers an unusually high amount of protection for a very modest CPF-deducted premium.
Frequently Asked Questions
Is the Home Protection Scheme compulsory in Singapore?
HPS is mandatory for HDB flat owners who use their CPF Ordinary Account savings to service their HDB housing loan. If you pay your HDB loan entirely in cash, HPS is not automatically compulsory, though many owners still opt in for the low-cost protection.
How much does HPS cost in 2026?
Premiums depend on your age, loan amount, and health. As an illustrative example, a couple both aged 30 with a S$400,000 loan pays a combined annual premium of around S$272 (about S$23/month) in 2026. Use the official CPF HPS Premium Calculator for your exact figure.
What does HPS actually pay out?
HPS pays off the outstanding balance of your HDB housing loan (or your proportional share, if co-owned) if the insured member dies, is diagnosed with a terminal illness, or becomes totally and permanently disabled.
Do I pay HPS premiums for the entire loan tenure?
No. HPS premiums are typically collected for about 90% of your loan tenure — for example, around 27 years on a 30-year loan — with the final portion of the loan term effectively premium-free.
What happens to HPS cover if I co-own my flat with someone else?
HPS cover is split according to each owner’s ownership share. If you and your co-owner each hold 50%, HPS separately covers each of your 50% shares of the outstanding loan, and a claim on one owner’s cover clears only that owner’s share.
Is HPS the same as the Dependants' Protection Scheme (DPS)?
No. HPS is tied specifically to your HDB loan and decreases as your loan balance falls. DPS is a separate, flat-sum-assured CPF-linked term life scheme unrelated to any specific loan — many households hold both for complementary protection.