The HDB Household Security Scheme (HPS) is a mandatory mortgage loan-cutting down insurance application administered via the CPF Board, built to defend HDB flat owners and their people from losing their household must they turn out to be not able to service their housing bank loan because of Demise or a total long-lasting incapacity prior to the age of sixty five. The scheme is Obligatory for flat owners who use their CPF discounts to pay for their monthly financial loan installments. HPS rates are paid out each year within the policyholder's CPF Normal Account, with the Price tag determined by elements for instance age, gender, personal loan volume, and repayment period of time. The coverage's protection amount of money is pegged on the excellent housing financial loan, and it decreases after some time as the loan is compensated down. Entrepreneurs who need to be exempted from HPS can submit an application for a waiver by demonstrating they've enough coverage from other here resources, for instance A personal life insurance coverage or an endowment plan.