Factoring Different Actuarial Risks into HDB Home Protection Scheme

62 Dr Tan Wu Meng asked the Minister for Manpower (a) whether the Home Protection Scheme (HPS) can take into account that different conditions have differing actuarial risk on a continuum with a view to including policyholders with pre-existing conditions; and (b) whether an individual who previously qualifies for HPS on his first HDB home but later developed a medical condition can be considered for HPS inclusion when right-sizing to a second HDB home.

Dr Tan See Leng: The Home Protection Scheme (HPS) is a mortgage-reducing insurance which protects CPF members and their families from losing their HDB flats in the event of the member’s death, terminal illness or total permanent disability. Today, HPS covers nearly all applicants, including some with pre-existing medical conditions, without premium loading.

HPS coverage is not extended to applicants with serious pre-existing medical conditions to ensure the affordability of premiums for members and the viability of the scheme. For flat owners who face difficulties with their mortgage repayments, HDB has various assistance measures available to help them.

When a member sells his or her HDB flat and immediately right-sizes to a new HDB flat, but is not eligible for new HPS cover due to health reasons, the previous HPS cover can be ported over to the new HDB flat.