Best Mortgage Insurance Plan Singapore 2023
Owning your home or property definitely provides an exciting time ahead. You want to protect this hefty investment from turning into a debt for your spouse/family. As unknown circumstances like death, total disability and terminal illness may affect and leave your loved ones in heavy debt, or worse case scenarios, having to sell the home you bought.
Mortgage Insurance, also known as Mortgage Reducing Term Assurance plans, is a sum assured reducing term insurance to cover for home owners’ remaining mortgage loan. This is paid to the surviving joint-owner/family member when death, total permanent disability, critical or terminal stage illness occurs.
What are Mortgage Reducing Term Assurance plans?
Mortgage Reducing Term Assurance (MRTA) are insurance plans to cover for your remaining mortgage loan. That being said, the sum assured is matched with the mortgage loan amount for the owner/payor of the property.
The protection amount will gradually reduce over time in accordance to the mortgage loan amount as well as interest rate selected, for reasonable inflation consideration.
When should I get Mortgage Reducing Insurance?
When you have a home loan to pay for. It is a low-cost coverage which pays the remaining outstanding home loan amount to your family member after death, total permanent disabled or critical illness occurrence. It protects your family members from losing their home after your dismissal. It prevents your liability from turning into a hefty expense for them.
As this protects solely and acts mainly as your housing mortgage loan coverage, it transfers the risk protecting your mortgage liabilities. Some people may find getting a level term insurance as they are essentially the same protection plan, with level term insurance having a benefit of well, level throughout instead of being reduced like MRTA.
Cheapest & Simplest Coverage
A simple pure death straight forward coverage protection term plan. It is slightly cheaper than a level Term Insurance, frills free and covers purely for your mortgage loan.
Customizable Supplementary Benefits
These riders mix and match benefits to further enhance your protection like Advance Critical Illness Waiver rider, Premium Waiver Rider for Cancer and so on.
Flexibility on Coverage Length & Reducing Rate
Choose the tenure and interest rate that is most suitable for your mortgage loan. The interest rate that you add will contribute to how the sum assure reduces over the years. The higher the interest rate, the slower the reducing rate.
What Is The Main Difference Between Mortgage Term & Level Term Insurance?
The protection sum assured amount for a Mortgage Reducing Term will gradually decrease yearly in accordance to the loan tenure and mortgage loan amount in accordance to an interest rate for inflation consideration. The sum assured for a normal Term Insurance however, is level throughout the coverage period and will not decrease yearly, same coverage be it during the second or last year during the protection period.
Tokio Marine Mortgage Protection
AXA Decreasing Term Assurance
Get the Best Mortgage Insurance in Singapore for 2023
There are many Mortgage Reducing Term Insurance plans in the market today. We have specially reviewed and compare them for you so you don't have to do so.
Simply fill in the simple questionnaire to find the best Mortgage Reducing Term Insurance plan to best protect your home in the event of uncertainty. Our experienced licensed FA advisor will get in touch with you shortly upon your request.
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Frequently Asked Questions
Not necessary. However if you want to use a private insurer’s mortgage reducing term insurance plan to replace with the current HPS, you can do so.
If you own private properties it is not compulsory for you to own an MRTA. Some banks do have tie ups which offers special loan rates though.
Not necessary. If it is a private property, the sum assured and coverage period term need not be the same, as the onus is on you.
On the other hand, if you are using a Mortgage Insurance to replace a HPS, you need to make sure the coverage tenure and amount is enough for HDB to accept it.
Yes there is. Some other supplementary benefit riders you can add on to further enhance your coverage is:
– Critical Illness (Advance Stage)
– Premium Waiver in the event of Critical Illness
– Total and Permanent Disability
You can also alter and customise the coverage period best suited to your tenure. For HDB, it has to match your loan term. For private properties, you can have it at your discretion but our advice is to match the actual loan tenure.
Insurers can go up to 35 years to match with the bank’s maximum mortgage loan period.
You also can choose the interest rate to be reduced for your MRTA. Interest rate is included to factor in inflation and how fast the sum assured decreases yearly. A high interest rate slows down the yearly decreasing rate.
The premiums for death and TPD are guaranteed for most insurers. However as with all insurers and Critical Illness landscape, the CI supplementary riders are not guaranteed as this is based on claim history on insurer’s records.