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Mortgage Insurance

Your Comments – My Replies #3

I would like to thank Marc for visiting my blog and posting his comment after his read on my posts on the importance of having Mortgage Insurance to protect a Mortgage Bank Loan. If you are interested in reading what I have written on this particular topic, these are the links:

Mortgage Insurance For Your Mortgage Loan – Part 1 of 3

Mortgage Insurance For Your Mortgage Loan – Part 2 of 3

Mortgage Insurance For Your Mortgage Loan – Part 3 of 3

And this is the comment by Marc:

“Hi, it seems from your article that one can purchase a mortgage insurance with a sum assured higher than the loan amount; coverage longer than the loan tenure.

Please elaborate how this insurance can help one in time of need after the loan has been paid up completely.  Doesn’t the insurance lapsed automatically once the loan had been paid up?”

This Is My Reply:

– With Regards To Higher Sum Assured and Longer Coverage Period

Read More »Your Comments – My Replies #3

Your Comments – Replies #2

I have  this comment from a Miss Cecilia Yong who asked on this blog post,

“Question on mortgage reducing insurance: what is the relationship between bread winner (person serving the property loan) and the dependant? Must is be parent-child relationship? What about husband-wife relationship? Can this suffice?”

First and foremost, thank you for visiting and reading my blog and definitely for this valuable comment! And I will try to answer this to the best of my knowledge (my answer is rather personal and there can be some legal element to this, so for better clarification, you may have to consult a lawyer and such)

Let’s first break down the question into different definitions:

1. Bread-winner: this is the general term used to describe someone who is providing the main financial income to the family. Should anything happen to this particular person, there could be some drastic financial crisis unless plans have been made beforehand.

2. Dependents: I have done up a few searches and most sites give the definition as those who depends on the so-called bread-winner for a financial income. So people who can be called dependents could be a) your parents b) possibly your grandparents c) your children d) your siblings (if in some situation, they do depend on you).

3. Mortgage Reducing Insurance: As mentioned in my post, there’s an existence of a mortgage loan between two parties – owners of a property and a Financial Institution who provides this loan. And do note in the case of a mortgage loan, it may not just be the Bread-winner being the main owner of the loan, and one can always add the names of their spouse, parents or siblings to be in the mortgage loan agreement.

Should anything happen to any of the parties as mentioned above, the remaining parties will still continue to bear the remaining loan repayment term.

And to apply for the Mortgage Reducing Term Insurance, the presence of the loan agreement must be there and this also mean that those name(s) listed in the loan agreement are allowed to get covered with the Insurance. Terms and conditions do apply (e.g. home-makers have a maximum limit in insurance coverage and may not be allowed to get covered in full – matching the actual loan)

So What Happened When There’s A Claim?

Read More »Your Comments – Replies #2

Underwriting Requirements For Your Mortgage Insurance – Part 2 Of 3

In the first part of my Three Part Series on Mortgage Insurance, I have shared why you should consider having a Mortgage Insurance to cover your Private Housing Loan and not to wait to sell of your Property and that a Mortgage Insurance would be beneficial to you because:

  1. The Premium is the lowest as compared to Whole Life, Endowment, Level Term and even Decreasing Term Insurance
  2. Mortgage Insurance is portable among Mortgage Loans.
  3. You can still keep your Mortgage Insurance Plan to form part of your Financial Planning Process

And in this Second Part of the Three Part Series, I will be sharing with you on the Underwriting Requirements when you apply for your Mortgage Insurance.

To start off this Second Part, I shall share with you when can you start applying for your Mortgage Insurance and why so…

When Should You Apply For Your Mortgage Insurance And Why So…

Do You Have Your Mortgage Insurance?

Read More »Underwriting Requirements For Your Mortgage Insurance – Part 2 Of 3

Mortgage Insurance For Your Mortgage Loan – Part 1 of 3

With the recent property boom in Singapore, there’s an increment in people taking up Private Bank Loan and thus creating a concern in terms of financial planninga need to protect the mortgage loan (and their pricey assets) should anything unforeseen happen to the Loan Owners…

The Common Belief – Should Anything Happen, I Can Just Sell Off The Property…

If everything is so straight forward, life will be perfect! In Reality, Property does not sell by itself especially if the Developer had done quite a heavy bit of their own advertising. The initial selling price is usually jacked up and to really pull it off in selling – takes patience, time, effort, negotiation and being able to sustain the few months of loan payment.

Or even the worst case of selling the property below the market value…

Are You Selling Your Property?

So What Should You Do? For Any Mortgage Loan, There’s Mortgage Insurance!

If you only know Term Insurance, there’s in fact a Mortgage Insurance or commonly known as Mortgage Reducing Term Insurance and not to be confused with Decreasing Term Insurance.

Read More »Mortgage Insurance For Your Mortgage Loan – Part 1 of 3