Singapore CPF members to pay lower premiums for home cover

Improved investment and claims performance cited for premium cut

Singapore CPF members to pay lower premiums for home cover

Insurance News

By Gabriel Olano

Around 95% of all Central Provident Fund (CPF) members will pay lower premiums for their Home Protection Scheme (CPS), starting July.

The CPF, which is a mandatory comprehensive savings plan for working Singaporeans and permanent residents, said that improved investment returns and better claims results prompted the reduction in premiums. Around 510,000 CPF members will benefit from the lower premiums, and three in every four of these members will see their contributions decrease by at least 10%.

The agency last reduced its premiums in 2012.

“With the reduction in premiums, a male member aged 32 who is servicing a SG$200,000 housing loan from the Housing and Development Board for 30 years will pay a reduced annual premium of SG$183.20 instead of SG$215 (equivalent to a 15% reduction), when he joins the scheme from July 01, 2018,” the CPF said in a statement.

New HPS scheme members that join on or after July 01 will automatically enjoy the new rates, while existing members will become eligible for the new rates when they renew or adjust their HPS coverage from July 01 onwards.

HPS is a mortgage-reducing insurance scheme that protects CPF members’ and their families’ outstanding home loans in case of the member’s death, terminal illness, or total permanent disability.



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