I purchased an HDB resale recently and was contacted by someone from the bank giving me the loan. (More details below). Should I go for the Home Protection Scheme and ignore the cash plans out there?

Hi anon,

No harm going for medical underwriting first to see what the outcome is, before deciding whether to proceed or not.

Having sufficient death/TPD insurance is important for the loan, and it good that you know that what you currently have is sufficient for the amount. However, note that if you have a whole life with CI coverage, the purpose of such a plan is not for the event of death/TPD. Imagine a situation where you contract a CI, burn through the payout, and then pass away. There would still be insufficient death/TPD cover.

So it is plausible to have a standalone plan for death/TPD cover to protect the loan, as the flexibility provided and the ensuring liquidity ensures the surviving family members will have options available to them. HPS only negates the loan and still leaves the family cash strapped.

Compare the premium u need to pay for level term plan vs CPF HPS.

You will see that it's cheaper to pay for level term plan insurance.

On another hand with your declaration, i'm doubtful CPF will cover you for the HPS plan.

So if you want to try, just go with HPS first, then try external insurance if HPS doesn't allow it.