You should analyse the following factors to make decision most suitable for you. This article uses AIA's MRTA (Mortgage Reducing Term Assurance) and HDB's HPS (Home Protection Scheme) to elaborate:  

Insurance Proceeds:

When a claim is made, HPS will only offset your remaining mortgage loan while AIA will pay you a LUMP SUM CASH. The good thing about this is that you can use the money for other purposes like final expenses, children's education and even household, while pay the remaining loan by instalment. This is especially helpful to ease your family's cash flow problem when bread winner passed away.  

Payment Period:

HPS request you to pay the premium for 80% of the loan period while AIA's is 75%. If your loan period is 30 years, you can save 5 years premium from MRTA (22 years) comparing to HPS (27 years)

Terminal Illness Coverage: 

MRTA will pay upon terminal illness while HPS will not pay. Terminal Illness means the person is suffering from a condition which, in the opinion of an appropriate medical consultant, is highly to lead to death within twelve months.

Critical Illness Coverage:

Under MRTA, the premium will be waived if the insured is diagnosed of critical illness. If the person is insured under HPS, he still have to pay the premium even he has a huge burden for medical treatment

Transferability:

If the person changes his house, he has to purchase a FRESH HPS, while MRTA can be continued for the new mortgage loan. This is important because if the insured person suffers illness HPS may reject the new application thus the new mortgage loan cannot be covered.    

Source of Premium:

HPS is paid through CPF while MRTA is paid by cash. This is because MRTA will pay the claim in CASH while HPS does not.