SINGAPORE: About 510,000 Central Provident Fund (CPF) members who are covered under the Home Protection Scheme (HPS) will get a reduction on their annual premiums from Jul 1 onwards.
This constitutes 95 per cent of HPS members who are paying annual premiums, with three in four of these members getting reductions of 10 per cent or more, the CPF Board said in a news release on Tuesday (Jun 26).
With the premiums reduction, a 32-year-old male member who is servicing a S$200,000 housing loan from HDB for 30 years will pay a reduced annual premium of S$183.20. This is equivalent to a 15 per cent reduction, said CPF Board.
“Members who join the HPS scheme on or after Jul 1, 2018 will get to enjoy the new rates, while existing members paying annual HPS premiums will pay the reduced premiums when they renew or adjust their HPS coverage on or after Jul 1, 2018,” it added.
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.
Those using CPF savings to pay for their monthly HDB loan instalments have to be insured under HPS.
HPS premiums are regularly reviewed, with the last premium reduction conducted in 2012.
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