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Best Mortgage Insurance Singapore

Mortgage insurance is a type of insurance policy that helps you pay your outstanding home loan in the event that you pass on or are unable to work again. It decreases in coverage and value over time in tandem with the size of your remaining housing loan. Given that the cost of housing is quite high in Singapore, mortgage insurance is one way to ensure that your family does not get saddled with debt if you can no longer pay your home loan instalments. Mortgage insurance pays out in several situations which we will cover shortly.

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Why Do I Need Mortgage Insurance?

Apart from death, mortgage insurance policies can also cover terminal illness and/or total and permanent disability. In this case, the insurer foots the rest of your home loan since you won’t be able to work anymore. However, coverage can vary depending on insurer and there may be an age limit to this benefit.
Some mortage insurance policies may be able to help with home loan payments if you're unable to pay as a result of genuinely difficult circumstances. But again, this depends on the insurance policy.
Mortgage insurance's core function is to cover the remainder of your home loan if you pass on before it is fully paid up. Consider mortgage insurance if you want to ensure that your family doesn't have to struggle with the home loan once you're gone.

Do You Already Have Mortgage Insurance?

HDB Flats (Home Protection Scheme)

If you own a HDB flat and are using your CPF to pay for your home loan instalments, you will, by default, be enrolled into the Home Protection Scheme (HPS). HPS is a form of mortgage insurance that is administered by the government via CPF. You can choose to opt out, but only if you have sufficient coverage from other insurance policies to cover your home loan.

Private Homes

If you own a private house, you will not have any sort of mortgage insurance by default. The HPS does not cover private housing, even if you use your CPF to pay the home loan instalments. To protect yourself and your family, you will have to either purchase mortgage insurance from a private insurance company, or find a term or whole life insurance policy with sufficient coverage to settle your home loan.

Should You Buy Mortgage Insurance?

Mortgage insurance is generally a good idea given that housing loans are often the single largest liability for many Singaporeans. It is especially important if you are the sole breadwinner and your family members do not have the ability to repay the loan if you pass on.

If you own a HDB flat and are using funds from your CPF OA (Ordinary Account) to pay for the house, you are covered by the Home Protection Scheme (HPS) mortgage insurance, and you can keep it that way. Otherwise, you might want to consider getting a mortgage insurance from an insurance company.

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Best Mortgage Insurance in Singapore

Plan: Manulife ManuProtect Decreasing
Covers: Death and terminal illness
Best for: Easy application with no health check-ups (for applicants up to age 50)
Plan: Income Mortgage Term
Covers: Death, total and permanent disability (before age 70) and terminal illness
Best for: Enhanced coverage with a variety of premium waiver riders to choose from

Mortgage Insurance Premiums

ManulifeManulife ManuProtect DecreasingS$18.67 (for a S$500k mortgage, age 30 male, non-smoker)
IncomeIncome Mortgage TermS$25.10 (for a S$500k mortgage, age 30 male, non-smoker)
AXAAXA Decreasing Term AssuranceS$34.12 (for a S$500k mortgage, age 30 male, non-smoker)

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How do I choose a Mortgage Insurance plan?

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What to Consider Before Buying A Mortgage Insurance Plan?

CPF Home Protection Scheme

If you are using CPF to pay for your home loan instalments, check that you are covered under the Home Protection Scheme. To do this, log in to your CPF portal using Singpass and check the Home Ownership dashboard. If you already have it, you should be sufficiently covered for your current home.

Sole Breadwinner

If you’re the sole breadwinner for your family and not covered by the Home Protection Scheme or sufficient life insurance coverage, you may need to get a mortgage insurance plan. This would ensure your mortgage is fully insured and your family will not lose their home or struggle with loan payments if you’re not able to pay the bills anymore.

Private Whole Life and Term Insurance

If you are not covered under HPS, don’t panic just yet. Your home loan may already be covered if you have sufficient whole life or term life insurance coverage that can cover both your mortgage and lifestyle expenses. In that case, you may not need additional mortgage insurance. If you co-own your home with your spouse, check their insurance coverage as well.

Planning To Move?

Do note that your mortgage insurance plan will not follow you from your current house to your next house. You will need to cancel and reapply for a new mortgage insurance plan when you move.

How Much Mortgage Insurance Do I Need?

If you're the sole owner of your home and are the only person paying the loan instalments, it's pretty straightforward. You would want your mortgage insurance to fully cover your home loan lest your loan falls on your family. For example, if your loan is $500,000, then opt for a policy with sum assured of $500,000.
If you're applying for mortgage insurance jointly with your spouse or co-owner of the home, your insurance should still cover the entire outstanding loan amount if either of you passes on. You may choose to split the insurance premiums between the two of you. However, here's something to take note: if one person passes on, your share of the insurance premiums can be transferred to your spouse, meaning they’ll need to pay both your premiums to stay covered!

What Is Covered By A Mortgage Insurance Plan?


This is standard for all mortgage insurance plans. After all, the point of this insurance is to ensure that your outstanding home loan will be fully paid off if you pass on while the policy is in effect.

Total and Permanent Disability

Depending on your priorities, some mortgage insurance also offers you full home loan coverage in the event you're diagnosed with total and permanent disability. Income Mortgage Term has this feature, although note that it only covers up to age 70.

Terminal Illnesses

Another common coverage you'll find is terminal illness – plans like the Manulife ManuProtect Decreasing has this feature.

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How Do I Pay For My Mortgage Insurance?

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Methods To Pay

Credit Cards

Most often, when you apply for and sign your policy contract, your insurance agent will set up a recurring payment on your credit card. If you change credit cards, make sure to keep your account updated with your new credit card details to avoid a lapse in coverage.


Another common option is to set up a recurring GIRO payment from your bank account to pay for your premiums. The bill will be automatically deducted and you do not need to worry about forgetting to pay your credit card bills.


A third method is to pay your premiums through the AXS network: AXS physical stations, the AXS website, or the AXS mobile app.

Bank Transfer

Finally, you can also simply log in to your internet banking account on your computer or via your bank's mobile app. You'll find a "Pay Bills" section and you can select your insurance company to pay your premiums there. Make sure you enter the correct reference number when making payment this way.

How do I apply for a Mortgage Insurance Plan?

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Applying for a Mortgage Insurance Plan through MoneySmart

Step 1

Answer Some Questions

If you find downloading insurance policy brochures and comparing them side by side a hassle, our intelligent system can do the comparison for you. Answer some questions online and we'll have you going.

Step 2

Speak To Our Insurance Specialists

After you submit your quiz, our expert insurance specialist team members may drop you a call to clarify your needs and explain your options to you. Seize this chance to ask our friendly colleagues the burning questions you may have about mortgage insurance!

Step 3

Apply And Purchase Your Mortgage Insurance

Once you have spoken to our insurance specialists, considered your options, and planned your finances, you are ready to apply for your mortgage insurance plan online through our portal.

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Mortgage Insurance Beginner Guides

Mortgage Insurance in Singapore: How To Compare & Decide Which Is Best For You

Term Life vs Whole Life Insurance in Singapore — Which Is Better for You?

Life Insurance in Singapore — The Basics of Whole Life and Term Insurance

Home Protection Scheme Singapore: What Is It & How Does It Affect You?

Frequently Asked Questions

Is mortgage insurance compulsory in Singapore?

If you are using CPF to pay for your home loan, you're automatically enrolled into the CPF's own mortgage insurance called the Home Protection Scheme (HPS). HPS is compulsory. However, you can write in to CPF to be exempted if you can prove that you have sufficient coverage from your personal insurance policies (e.g. whole life, term life, endowment, or mortgage insurance).

What is mortgage insurance Singapore?

Mortgage insurance is a contract with an insurance company which promises you that so long as you pay your due premiums, it will pay for your entire outstanding home loan in the event of your death, terminal illness or total and permanent disability (if covered).

Is it worth it to buy mortgage insurance?

It depends. If you already are covered by the Home Protection Scheme, and/or have sufficient existing insurance policies to cover your home loan in the event of death, then you may not need mortgage insurance. However, if you are a private home owner with insufficient existing coverage, mortgage insurance would be an important consideration.

How long do I pay mortgage insurance?

You will typically pay for your mortgage insurance for as long as your home loan is still going on. However, there are mortgage insurance plans which offer you the option of a single premium.

What is a mortgage?

A mortgage, or mortgage loan, is often used interchangeably with "home loan". It is basically the financial loan that you take from the HDB or a bank to pay for your house.

Does home insurance cover mortgage payments?

No, home insurance does not cover your mortgage loan payments. Home insurance often only covers your house's actual building and infrastructure, renovations, and your home’s contents.

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