Members who have alternate insurance policy/policies may apply for exemption from HPS. They must be a CPF member and registered owner/co-owner of the property with The Housing and Development Board (HDB) under the Public Housing Scheme. The outstanding housing loan of the property is approved by the HDB or approved mortgagee.

The following is the type of insurance policies acceptable for exemption propose:

1) Types of life insurance policy(ies) (both traditional and investment-linked) acceptable in support of an exemption application:

• a) Whole Life b) (Level) Term Lifec) c) Endowments d) Life Riders (must be attached to a basic policy) e) Mortgage Reducing Term Assurance (MRTA)/Decreasing Term Rider
• a) - d) The remaining term of the insurance policy must be equal to or more than the remaining term of the housing loan or must cover the applicant up to age 65.
• e) If a MRTA or Decreasing Term Rider policy is used, the reducing sum assured must be calculated based on the applicant's housing loan mortgage interest rate and full term of loan at the time he obtained the policy. If the mortgage interest rate is not furnished, zero mortgage rate would be assumed to determine whether the coverage is adequate. The policy commencement date for the policy must start on the same date or at a later date than the commencement date of the outstanding housing loan.

2) Group policy is not acceptable.

3) Only Singapore dollar policies purchased from insurance companies registered in Singapore is acceptable.

4) Please note that the policies used for exemption must be consistent with HPS requirements, otherwise the policies would not be approved by the Board.

5) If a joint-life insurance policy is used, the declared percentage of housing loan to be exempted from HPS should not be less than 100% for each applicant.

Please note that you should only apply for exemption from HPS after your loan completion date.

Source: CPF Website

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Last Updated on Wednesday, 28 September 2011 16:30