Monday, April 11, 2011

cpf home protection scheme


in a report by our free daily tabloid, today, a shockingly high 9,000 housing and development board flat owners saw their home protection scheme or national mortgage insurance lapse due to insufficient funds in their cpf accounts to pay the premium.

although this represents just 1.7% of approximately 556,000 home owners who service their hdb loans with cpf savings, nevertheless, these owners do not have the protection against the loss of their homes should the breadwinner dies prematurely or become incapacitated before the loan has been fully paid.

and to add to this, there were another 2% who were not insured due to medical conditions or other reasons.

my comments:


i have always sounded the risk of future affordability of paying premiums for those who advocate buy term and invest the rest thingy.

and worst, the longer the term plan, the higher the risk of future affordability of paying premiums.

and this risk can translate into reality even for a plain and 'affordable' term plan like the home protection scheme.

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