House mortgage insurance

[Scenic98]

now shopping around for the best value for mortgage insurance. for the same mortgage amt, tenor, and interest rate, found out that quotes can vary quite a bit between different insurance companies. all also include the same critical illness protection.

also wondering, if my mortgage is X, should i go for a X-Y protection? (where Y=the amount that I may partial pay the loan soon)

 

any advise appreciated

[Guyver]

now shopping around for the best value for mortgage insurance. for the same mortgage amt, tenor, and interest rate, found out that quotes can vary quite a bit between different insurance companies. all also include the same critical illness protection.

also wondering, if my mortgage is X, should i go for a X-Y protection? (where Y=the amount that I may partial pay the loan soon)

 

any advise appreciated

 

If you can take a fixed sum assured .... say your loan amount is $500K ... you can take $500K sum assured ..... by all means.

 

In the event of something happens, the balance $$ can be given to your family.

[Keithtonchee]

Same same bro.. Me too shopping for my new house. Any lobang to share?

[Donut]

its up to you and yr budget.

 

most or if not all mortage insurance are decreasing sum assured, following your outstanding balance amount.

 

so if u mati one day suddenly, the insurance will pay off yr whatever latest loan amount and the house will be fully paid up.

 

 

if u want and afford a fixed sum assured, like wat Guyver said, then by all means, get it. the remaining payout will go to your family members.

 

 

if not, then just get the decreasing mortage insurance

[Scenic98]

yes...i am looking at a decreasing mortgage type. joint life policy, so in case one of us konk off, then the house fully paid. need to shop around, for the same sum assured, interest and tenor, premiums vary quite a bit.

[Scenic98]

yes...i am looking at a decreasing mortgage type. joint life policy, so in case one of us konk off, then the house fully paid. need to shop around, for the same sum assured, interest and tenor, premiums vary quite a bit.

[My_Motor]

assume there is no change in interest,

if cover X amount, when there is a claim, the sum assured can clear your loan with some amount left.

If cover X-Y, then nothing left from the policy after loan been clear.

Pls remember, the insurance policy should have the interest quoted higher than your loan interest in case loan interest increase. Otherwise you will be under insured due to the interest, then sum assured will not be enough to clear fully the loan.

[DieselLover]

It is pretty costly to insure yourself 100% to the loan amount. Have you considered insuring 50-50 sum assured with your wife?

I believe it'll cost less this way, and you get converage for 2 pax.

 

Some banks gives discounts if decreasing term policies were bought. You should check with your banker if such discount is available.

 

There are many other things you can do to save $$ ... such as shopping for the best interest rates from banks.

You can PM me if you need more help on this matter, it'll see if i can hook you up with something.

[Scenic98]

tks for all the advises. have decided to go with one that is joint life. so if one of us konk out, the house is fully paid. PM me if there's a better alternative, i am clueless when it comes to insurance.

[Lobangking88]

pm you.

and also if any deal is done. 50% of my comms be donated to

 

http://ourfeistyprincess.blogspot.com/

 

 

[Sci10213]

Has anyone faced with this problem where you are rejected under HPS cover by CPF + rejected by private insurers for mortgage insurance due to health reasons?

 

Spouse is foreigner so cannot be joint HDB flat owner... and therefore also not eligible for HPS cover. In no man's land now.

 

What is the best course of action for the above situation? Seek help from MP to appeal for some HPS cover?

 

Please share your experience and/or advice. Thanks.