Mortgage Insurance

Dear Mr Tan,

We are planning to apply for Bank Home Loan (both my wife and I are PRs) and would like to know about Home Loan insurance. We already have term insurance including critical illness policy, hospitalisation insurance.

Should we buy Home Loan insurance? I know some banks already included in their home loan product. Can we opt-out and choose separate Home Loan insurance? What are the best low cost insurance for Home Loan in the market?

REPLY

You can buy a Mortgage Insurance. You need to provide the following:

Amount of mortgage loan
Duration of repayment
Interest rate on theloan
Ages of the insured persons, e.g. you and your spouse

You can call a few insurance companies and ask them to give you a quote. You can select the company that respond to you (indicate that they give good service) and give you the best terms. Ask about the annual premium and the number of years paid. You can also opt to pay a single premium.

The telephone numbers of the insurance companies are shown here:
http://www.tankinlian.com/faq/termd.html