As Benjamin Franklin one of the founding fathers of the United States once said: 
 but in this world nothing can be said to be certain,  except death and taxes. 
 Old Ben has a point. On top of having to pay taxes, we have really no control over unfortunate events that might result in death. 
 Source: Giphy 
 This is something to keep in mind when you  become a homeowner and take on a home loan for your house. 
 In the unfortunate event that you pass away during your home loan tenure, the burden of the home loan would fall on their loved ones. 
 Also, as your home is being used as collateral, the bank has the right to foreclose your home while HDB has the right to confiscate your flat if your home loan instalments have not been repaid for an extended period of time. 
 And if it’s a home you and your family are living in, it also means you will lose the roof over your heads. 
 If you don’t want this to happen, you can consider buying either the  Home Protection Scheme (HPS) ,  private mortgage insuranc e or  term life insurance  to protect you and your family. 
 But you might be thinking. Which option is better for you? 
 We got you fam! 
 Disclaimer:  Any information provided by Seedly is only educational and is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Seedly or any company. Do seek the advice of a  trusted licensed advisor that you trust to help you make objective comparisons.  
 
 TL;DR: Home Protection Scheme vs Private Mortgage Insurance vs Term Insurance 
 
 
 
 Factors Home Protection Scheme (HPS) Mortgage Insurance Term Life Insurance 
 
 
 
 
 Housing Coverage HDB flats HDB flats & Private property Can cover HDB flats & Private property 
 
 
 Protection |  
Sum Assured Home loan | 
Up to home loan amount Life protection 
Variable (up to profile & insurer limits) 
 
 
 Premiums & Coverage Fixed/Level premiums but coverage reduces Fixed/Level premiums and coverage 
 
 
 Payment Method CPF OA (Can use cash if CPF OA funds run out) Cash 
 
 
 Claims recipient Policyholder Nominated beneficiarie(s) 
 
 
 Transferrable Not transferrable as HPS is tied to HDB flat Private mortgage insurance can be transferred to new property Coverage is tied to the individual and not the property 
 
 
 Add-On Benefits - Can add riders for critical illnesses, premium waivers, etc. 
 
 
 Cost (Approximate) $$ $ $$$ 
 
 
 
 Click here to jump: 
 
 What is home protection scheme? 
 What is mortgage insurance? 
 What is the best mortgage insurance plan? 
 Best term-life insurance that covers home loans 
 
 Disclaimer: The Information provided by Seedly does not constitute an offer or solicitation to buy or sell any insurance product(s). It does not take into account the specific objectives or particular needs of any person. We strongly advise you to seek advice from a licensed insurance professional before purchasing any insurance products and/or services. 
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 What is The Home Protection Scheme (HPS)? 
 Basically, t he  HPS  is a  Mortgage Reducing Term Assurance (MRTA) policy  that safeguards members and their families against losing their HDB flat in the unfortunate event of death, terminal illness or total permanent disability. 
 In other words, the payout you receive from this policy will decrease as you repay more of your loan while the premium stays the same. 
 The Government has made it  mandatory  for homeowners who use their  Central Provident Fund (CPF) savings  to service their monthly home loan instalments on their  Housing and Development (HDB) flat  to be insured under the HPS. 
 Also, HPS applies to you regardless of whether you are on an  HDB or bank home loan . 
 Should any of these things happen to HPS members, CPF will cover the outstanding amount on their home loan up to the  age of 65  or until the home loan is fully repaid, whichever is earlier.​ 
 Benefits of the policy will be paid out to the policy owner which could be the bank or the insured person. 
 However, the HPS cannot cover private residential properties, like privatised  Housing and Urban Development Company (HUDC) flats,   executive condominiums (ECs)  and more. 
 
 
 
 Also, according to CPF, your HPS cover starts when you meet all of the following conditions: 
 
 You are the legal owner of the flat 
 You have completed the loan application with HDB or the approved mortgagee and are now legally responsible for the loan 
 You have made your health declaration which is accepted for HPS coverage 
 You have paid the first HPS premium. 
 
 
 
 Here are the pros and cons of this type of policy: 
 Pros 
 
 CPF Ordinary Account (OA):  can use your CPF Ordinary Account (OA) funds to pay for the HPS. (Do take note of the  accrued interest on your CPF OA funds ) 
 
 Cons: 
 
 Limited scope:  only for HDB flat owners who are servicing their home loans using their CPF OA funds 
 Tied to the HDB flat:  once the specific HDB flat is sold, the HPS coverage will be terminated 
 Not the cheapest:  HPS is generally more expensive compared to private mortgage insurance especially when you are younger. 
 
 However, you can apply to be exempted from the HPS if you have any of the following policies: 
 
 Whole Life 
 Term Life 
 Endowments 
 Life Riders (must be attached to a basic policy) 
 Mortgage Reducing Term Assurance (MRTA) / Decreasing Term Rider 
 
 Source: Giphy 
 Is The HPS Premium Fixed? 
 Thankfully, you can use  CPF’s premium calculator  to gauge how much you need to pay. 
 The premium is paid annually and will automatically be deducted from your CPF OA. You will only need to pay the annual premium for 90% of the HPS cover period. The premium is also not fixed and you can adjust your HPS cover according to your share of responsibility in repaying the loan (using your CPF savings and/or cash). 
 The total share of cover per household must add up to at least 100%. However, you and your co-owner(s) can also each choose to insure for a higher share of cover, up to 100% share of cover 
per owner. 
 When you make a claim, HPS pays the sum assured based on the share of cover that you have applied for. A higher share of cover will result in a higher annual premium which is deducted 
from your CPF OA. 
 It’s important for all homeowners to consider your needs for financial protection and future retirement needs. 
 Will HPS Get Terminated? 
 There are two scenarios where your HPS cover can be terminated. 
 Sell Your HDB flat 
 Your HPS cover will end when you sell your flat and any unused portion of your premium will be paid into your CPF OA. 
 This will be applicable to both  downsizing  and buying a  resale  flat. If you buy a new flat, the HPS cover for your old flat will end while an HPS cover will be issued for your new flat. 
 Full Redemption of Housing Loan 
 Your HPS cover will end when you have fully redeemed your loan, and the unused portion of your annual premium will be paid into your CPF OA. 
 How Do You Get Exempted From Home Protection Scheme? 
 Well, these policies would cover your outstanding housing loan, either up to age 65 or until the full term of the loan, in the event of death, terminal illness or total permanent disability, whichever earlier. 
 But, that doesn’t mean this is your only option. 
 If you think you can get a better deal than the HPS, you are more than welcome to apply for a HPS exemption. 
 This brings us to the next point. 
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 What is Mortgage Insurance (Private Insurer)? 
 Alternatively, you can consider getting your MRTA from  private insurers . 
 You will find that private mortgage insurance can be cheaper than the HPS. 
 This is especially the case if you are buying an HDB flat together with your family member or partner as you will be issued two HPS policies instead of a joint one. 
 Also, both of you will have to pay your premiums separately. 
 In comparison, you can opt for joint policies if you choose private mortgage insurance which will usually be cheaper than two HPS policies. 
 Yo u can use this  HPS calculator  from CPF to estimate the HPS premium amount to compare it with your mortgage insurance quote. 
 Not to mention that private mortgage insurance can cover both HDB flats and private property as well. 
 Here are the pros and cons of private mortgage insurance. 
 Pros: 
 
 Greater scope : covers HDB flats and private property 
 Transferrable:  can be transferred to a new property if you decide to sell your home 
 More affordable:  typically cheaper than term insurance and HPS in some cases 
 Add-on riders:  flexibility to add coverage for critical illnesses, premium waivers, retrenchment coverage and more 
 Flexible:  can choose policy tenure. 
 
 Cons: 
 
 Decreasing term assurance:  sum assured is reduced each year in proportion to the loan amount and loan tenure of the assured while the premiums also tend to remain the same 
 Limits on the sum assured:  can only cover up to the total mortgage loan amount 
 Cash only:  you cannot use your CPF OA to pay for the premiums. 
 
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 Which Is The Best Mortgage Insurance Plan To Get? 
 But ultimately, it boils down to your personal needs when it comes down to deciding which mortgage insurance plan to get. 
 Before diving straight into choosing one that suits you, here’s a reminder of the various definitions: 
 
 Single Premiums are premiums that allow you to pay for your insurance in one lump sum 
 Regular Premiums: Monthly premiums are the most common way to pay for insurance. In terms of frequency, there are several options for paying for your insurance; the most typical are annual or monthly premium payments. 
 
 Here are some  mortgage insurance policies  available in Singapore for you: 
 
 
 
 Insurance 
 Maximum Sum Assured 
 Loan Tenure 
 Premium Term 
 Interest Rate 
 
 
 DBS eDecreasingTerm Mortgage Insurance  (Single or Joint Life) 
 $500,000 
 5 – 35 years 
 Policy term less 2 years 
 3% 
 
 
 Etiqa ePROTECT Mortgage Insurance  (Single Life) 
 Amount of Housing Loan 
 6 – 40 years 
 90% of policy term 
 1 – 4% 
 
 
 AIA Mortgage Reducing Term Assurance  (Single or Joint Life) 
 Amount of Housing Loan 
 10 years 
 75% of policy term 
 1 – 7% 
 
 
 AXA Decreasing Term Assurance Mortgage Insurance  (Single or Joint Life) 
 $5,000,000 
 10 – 30 years 
 Single Premium: Full policy term
 Regular Premium: 3 years 
 1 – 15% 
 
 
 Great Eastern MortgageCare Mortgage  (Single or Joint Life) 
 Amount of Housing Loan 
 10 years 
 80% of policy term 
 5% 
 
 
 Manulife ManuProtect Decreasing (II) Mortgage Insurance  (Single or Joint Life) 
 Amount of Housing Loan 
 25 years 
 Full policy term 
 1 – 5% 
 
 
 NTUC Income Mortgage Term Insurance  (Single or Joint Life) 
 Amount of Housing Loan 
 5 – 35 years 
 2 years less than policy term 
 1 – 7% 
 
 
 Prudential PRUMortgage Mortgage Insurance  (Single or Joint Life) 
 Amount of Housing Loan 
 10 – 35 years 
 3 years less than policy term 
 1 – 7% 
 
 
 Tokio Marine TM Mortgage Protection Insurance  (Single or Joint Life) 
 Amount of Housing Loan 
 10 – 30 years 
 3 years less than policy term 
 0 – 9.75% 
 
 
 
 
If you have questions about which Mortgage Insurance Plan to get after reading our  real user reviews , why not ask our community of experts and experienced members at  Seedly ! 
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 What is Term Life Insurance? 
 If you want more flexibility, you can opt for  term life insurance  to provide coverage for your home loans. 
 Term life insurance are insurance policies that offer protection for a fixed period of time. These policies typically pay out in the unfortunate event of death, terminal illness or total and permanent disability. 
 Here are some of the features of this type of insurance policy: 
 
 Purpose: For Protection Safeguard 
 Coverage: Cases of Death, Terminal Illness and total/permanent disability 
 Period of Coverage: Variable or up to a certain age 
 Guaranteed Death Benefit: Yes, Sum Assured 
 Guaranteed Cash Value @ End: NIL 
 Premiums: Regular Term 
 Surrender Penalties: NIL 
 
 Unlike mortgage insurance, the coverage and premiums remain consistent throughout the policy term. 
 Here are some of the pros and cons of these policies: 
 Pros: 
 
 Consistent:  coverage and premiums remain the same during the policy period. 
 Longer tenure : can cover you beyond the age of 65. 
 Flexible benefits : benefits are paid out to the appointed beneficiary who can use the money in any way they wish. 
 Tied to the individual:  covers the person and not the property. 
 Add-ons : flexibility to add additional coverage with a critical illnesses rider, premium waivers, retrenchment coverage and more. 
 
 Cons: 
 
 Pricey:  generally more expensive than the HPS and private mortgage insurance. 
 
 Which Is The Best Term Life Insurance Plan To Get? 
 To help you with your search, you can go on to Seedly to compare term life insurance plans and read our  real user reviews . 
 Besides paying off their major debt, such as a mortgage. However, they should consider how much more would be needed to help a spouse or partner pay bills, support children, pay for college tuition or cover any other long-term needs, he says. 
 
 
 
 Insurance 
 Maximum Sum Assured 
 Premium Term 
 Coverage 
 
 
 AIA DIRECT – AIA Term Cover Life Insurance 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 65 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 AIA Secure Flexi Term Life Insurance 
 $1,000,000 
 Renewable Term: 5,10, 20 or 30 years
 Fixed Term: up to 65, 75 or 100 years old 
 Death, Terminal Illness and Terminal Cancer 
 
 
 AVIVA DIRECT Term Life Insurance 
 
 
 
 
 
 AXA DIRECT – Term Lite Life Insurance 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 65 years old 
 Death and Terminal Illness 
 
 
 AXA Term Protector Life Insurance 
 $2,000,000 
 Renewable Term: 5,10, 20, 25 or 30 years
 Fixed Term: 15 years or 99 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 D BS TermProtect Life Insurance 
 $500,000 
 Up to 40 years 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 FWD Term Life Plus Insurance 
 $1,500,000 
 Renewable Term: 5 years
 Fixed Term: 5 years or up to 70 years old 
 Death and Terminal Illness 
 
 
 Great Eastern DIRECT – Great Term Life Insurance 
 $400,000 
 20 years or up to 80 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Great Eastern GoGreat Term Life Insurance 
 Plan 1: $100,000
 Plan 2: $300,000 
 Plan 3: $500,000 
 Up to 65 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Manulife DIRECT – ManuAssure Term Life Insurance 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 65 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 NTUC Income DIRECT Term Life Insurance 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 64 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Prudential DIRECT – PRUProtect Term 5 Life Insurance 
 $400,000 
 5 years or up to 80 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Singlife DIRECT – Singlife Term Life 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 65 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Tiq DIRECT – Etiqa term Life Insurance 
 $400,000 
 Renewable Term: 5 years
 Fixed Term: 20 years or up to 70 years old 
 Death 
 
 
 Tiq ePROTECT Term Life Insurance 
 $2,000,000 
 Renewable Term: 5 yearsFixed Term: 20 years or up to 65 years old 
 Death 
 
 
 Tokio Marine DIRECT – TM Basic Term Life Insurance 
 $400,000 
 Renewable Term: 5 yearsFixed Term: 20 years or up to 65 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 Tokio Marine TM Term Assure (II) Life Insurance 
 $2,000,000 
 Renewable Term: 5, 10 yearsFixed Term: 11 years or up to 85 years old 
 Death, Terminal Illness and Total Permanent Disability 
 
 
 
 
 Also, if you have any questions why not ask our community of experts and experienced members at  Seedly ! 
 
   
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