HPS GOT REJECTED? Do we need it?
Home Protection Scheme (HPS) is a compulsory mortgage reducing insurance that protects you and your partner in the case of death, illness or total permanent disability.
Since it works like an insurance, eligibility for HPS coverage is subject to you being in good health. You must declare and fully disclose all information regarding your health.
I disclosed mine, but my first submission came back with a rejection! Since a rejection means it’s no longer compulsory for me to have HPS, I was conflicted as to whether I should appeal.
Since the HPS premiums were fairly low, I decided to err on the side of caution and appealed against the rejection. The website states that CPF usually would get back within a week, but mine took almost a month and I was so worried. 😦 Thankfully, the final status was successful and I’m qualified for HPS now!
If any of you are in the same boat, and need advice on HPS or have any questions, feel free to leave a comment or DM! ☺️
The Home Protection Scheme (HPS) is designed to protect homeowners who use their CPF savings to pay for their HDB loans by providing coverage in cases of death, illness, or total permanent disability. In practice, this means that if something unfortunate happens to you or your spouse, the outstanding loan on your home can be cleared, ensuring that your family isn't burdened with mortgage payments during tough times. One common concern many have is whether HPS is compulsory. If you're using CPF funds for your HDB monthly loan repayments, HPS is required, but there are exceptions. For instance, if you have a private life insurance plan that fully covers your housing loan, you can apply for an exemption from HPS by submitting the necessary documents with the help of a financial advisor. When it comes to coverage percentages, couples can decide the share of HPS coverage based on who pays what portion of the monthly loan. Some opt for minimum coverage equal to their share, while others choose full coverage (100%) each for added security. Choosing higher coverage may increase premiums slightly but provides a stronger safety net. If your HPS application gets rejected due to health conditions, it’s important to remember this rejection means you aren't subject to the compulsory HPS requirement. However, if you feel the risk is too great without coverage, you can appeal the rejection. Make sure your appeal includes detailed medical documentation to support your case. The appeal process might take longer than the stated one week, so patience is necessary. Personally, although my initial application was rejected, I appealed and eventually obtained coverage, which gave me peace of mind. Having this protection made me feel more secure about my financial future and my family’s housing stability. If you are also facing challenges with your HPS application or want to know more about managing your coverage and exemptions, I encourage you to discuss with your insurance advisor or leave questions in communities where others share their experiences. Being informed and proactive is key to protecting your home and loved ones.
Is it once it's rejected, it's okay not to be covered and we don't need to buy private insurance?