Home Protection Scheme or HPS for short is an insurance scheme that helps HDB home owners pay for their mortgage debt in the event the borrower dies or is incapacitated. The HPS is often misunderstood. Firstly, it is misunderstood by many borrowers as they think it is like any other insurance product. Secondly, many financial advisers assumes that it has features like any other mortgage reducing term insurance (MRTA) when in reality it is quite a different animal altogether. The lack of a policy document does not help either. Thirdly, when come to estate planning, financial advisers who mistakenly assume it is like any other mortgage reducing term insurance could mistakenly make the wrong calculation in their survivor needs analysis resulting in their clients getting underinsured. Finally, advising on HPS earns no commission, financial advisers do not bother to give their clients accurate information on HPS resulting in disastrous consequences. The following are some points that I listed on the difference between HPS and a normal standalone MRTA and what you must know.... Read more (login required, clients only)