What are the differences between Home Protection Scheme, Term Insurance and Mortgage Reducing Insurance?

If what you had purchased is a HDB, you will not need to buy an additional term to cover the mortgage liabilities due to the fact that you should be protected by the Home Protection Scheme. Home Protection Scheme basically covers the percentage you are liable for in the mortgage and it is compulsory if you are using CPF to pay for your loan.
However, it is not offered if you are purchasing a private property. Term insurance is used as a temporary cover to cover your liabilities and you can choose your tenor and sum asuured that you need. For example, if you have a $800k liabilities for your property, you might want toget a temporary term coverage for 25 years with a sum assured of $800k. In the situation that death, terminal illness, or total and permanent disability occurs, the full $800k will be paid out to you as cash and it can be use to cover the home loan liability.
Mortgage reducing term is the same idea as term insurance except that the sum assured drops every year by a certain percentage. The reason is because your home loan liability will decrease every month because you are paying off your loan. Hence, it also make sense that the coverage decrease as well.
However, do make your comparison because there are situations that a level term is about the same price as a mortgage reducing term and I would recommend the level term if there is not much difference in the premium. Because your sum assured stays the same throughout your selected tenor.

Home Protection Scheme is a decreasing term insurance policy that you pay for using your OA that automatically pays out the remaining mortgage owed on your HDB. If you own a private property you don't have the HPS.

Now the difference between the 2 term policies. First is level term which has a Death Benefit that doesn't decrease across time. Buy 1m and if you die 20 years later it will still be 1m.

The second one is decreasing term insurance. This policy has a decreasing death benefit. If you buy 1m today, and die 20 years later, you may only get 300k for example.

Decreasing term policies are cheaper than level term policies. Although by not that much.

People guy decreasing term policies to cover a mortgage because your mortgage decreases with time.

However, if you decide to sell your property and buy another one in the future, you may have a new mortgage and thus, a new coverage amount, your old decreasing term would not be enough. And you might not be able to be insured as well at time of new application.

So between the 2, I'll choose to pay slightly more for a level term policy that doesn't decrease throughout the policy term in the event of purchasing a new home or upgrading from HDB to private property, because you look the HPS cover as well.