Mortgage Insurance

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Mortgage Insurance

Postby SMH FOREST » Thu Jun 28, 2012 12:44 pm

Anyone has recommendation on Mortgage Insurance? Which insurer offers the best? Am wondering if Critical Illness is a necessary rider? Apparently, I googled and some mentioned that the premium added on for Critical Illness is very expensive, and its not worth.

Any one knowledgeable in this, please share! Thanks! :smile:

SMH FOREST
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Re: Mortgage Insurance

Postby verykiasu2010 » Thu Jun 28, 2012 1:07 pm

mortgage insurance is basically a reducing term insurance

the idea is to have a payout to cover the outstanding mortgage in case of a tragedy and thus do not need to lose the property due to forced sale in case of inability to service the mortgage when the income earner lost his / her ability to earn the income permanently due to sickness or injury

cost of medical rider is dependent on what type of coverage is desired.

both AXA and Prudential has good policies for this purpose

it is a good opportunity to get a medical cover as a package with mortgage insurance
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Re: Mortgage Insurance

Postby SMH FOREST » Fri Jun 29, 2012 10:58 am

verykiasu2010,
thanks for your response... checked w my pru agent, and pru doesnt have any CI rider to go w mortgage... the standard for pru is just the TPD and Death covers...

however, i checked w another agent, and if we cover CI, the premium is a good 1000% increase over pru's basic plan... and its for 50% coverage (i.e. half of sum assured) for CI only... but of cos, i understand that there's additional coverage and it cant be for free.. just taken aback by the difference in amount...

herrys,
thanks for your thoughts, but my question is not on whether its required.. but more on which insurer offers good policy for it. i've gotten my mortgage already and there is no mandated requirement. but for peace of mind, am looking at it just in case something happens.

with the many policy that one covers for now, Hospitalisation Shield Plans, Whole Life, Endowment, etc... i hope to cover for mortgage but dont wanna overpay for it either... that's why I'm hoping to get some advise from people who have already bought one...

Thanks!

SMH FOREST
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Re: Mortgage Insurance

Postby verykiasu2010 » Fri Jun 29, 2012 2:45 pm

i got the mortgage insurance but not the rider

good thing is that it is not linked to any specific mortgage or property ..... in a nutshell is is a reducing term insurance, useful protection against potential liability -- and be able to keep the asset. the policy is "value for money" .... even when mortgages have been finished paying

worry about the medical rider policy separately
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Re: Mortgage Insurance

Postby SMH FOREST » Fri Jun 29, 2012 5:03 pm

Thanks verykiasu2010! :) yeah, i think that's the way to go... thanks for your inputs!! Helps me to clear my thoughts!!

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Re: Mortgage Insurance

Postby kooky83 » Thu Jul 05, 2012 3:21 pm

call me paranoid but I got the option CI coverage with my posb mortgage insurance. Yes, this makes the premium more expensive but think about it - would you want to take the chance that you won't have CI? If and when that happens, what happens to your mortgage? For me, it always pays to be safe than sorry.

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Re: Mortgage Insurance

Postby kooky83 » Wed Aug 08, 2012 6:02 pm

I don't think need to get CI rider, I bought my mortgage property insurance from DBS and didn't include the CI option. I agree, worry about the CI separately.

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Re: Mortgage Insurance

Postby radiantmum » Wed Sep 12, 2012 9:13 pm

Anyone able to advise on mortgage insurance
1. Better to go direct with insurance companies than banks?
2. Which one is competitive ie Prudential, AIA, NTUC, Great Eastern (I assume all are the same nature/offer?)
3. Any firm with bad reputation on ease of claims etc?

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Re: Mortgage Insurance

Postby verykiasu2010 » Wed Sep 12, 2012 9:22 pm

radiantmum wrote:Anyone able to advise on mortgage insurance
1. Better to go direct with insurance companies than banks?
2. Which one is competitive ie Prudential, AIA, NTUC, Great Eastern (I assume all are the same nature/offer?)
3. Any firm with bad reputation on ease of claims etc?


insurance companies are more price efficient

my personal experience only - AXA is better than Prudential, after been a Prudential customer for more than a quarter century
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Re: Mortgage Insurance

Postby radiantmum » Thu Sep 13, 2012 5:02 pm

thanks!

is there a website that does price comparison amongst different firms? called ntuc income and axa hotlines but they do not have direct hotline support for mortgage insurance enquiries and have to write in. so troublesome.

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