The world is slowly recovering from the effects of COVID-19. Sectors which were impacted are yet to be back at the pre-pandemic level. One such major sector is real-estate. The pandemic drove up the prices of houses, where a potential new buyer had to take large amount of home loan in order to buy a house of their own. This is also evident in Singapore. The repayments of a home loan typically last for a substantial period of time. In the event of unforeseen circumstances like a sudden demise of the sole breadwinner, a family might find it tough to deal with repayments. This is where mortgage insurance can come in handy and listed below are its benefits:
- The premiums are low
As a home owner, you would set aside a certain amount from your monthly income that will be used for repayment. This helps in keeping your expenses on track. In addition to home loan repayment, when you opt to invest in mortgage insurance, you would want the premium of the plan to be low and affordable. When you search for mortgage insurance, you will come across plans that offer low premium payments. You can also select the payment period based on your requirements.
- Your joint partner is protected
It is always advised to have a co-applicant when applying for a home loan. This helps to reduce the burden of repayment when both the applicants are earning. However, in the event of your untimely demise, the responsibility of repayment will fall on your partner. The living partner could face difficulties in taking care of the repayment. Most mortgage insurance plans offer coverage to your joint partner as well. They will be given a lump-sum pay-out in your absence. This will be mainly used for repayment, but some of it can used for other immediate expenses as well.
- Transferrable to new property
It is natural for you to sell your existing property and look for a new property. The reasons could be space, taxes, convenience, etc. When you plan on buying a new house, one main concern would be the transfer of your mortgage insurance. As the existing mortgage plan is for your existing house, you might think that your new house would require a separate plan. However, most mortgage insurance plans provide the option of transferring the plan from your existing house to your new house without any complications.
- Medical assistance is provided
One advantage of mortgage insurance is the fact that you get financial assistance during medical emergencies as well. Terminal diseases are covered under this plan. If you have a joint partner under the insurance, your partner will also get financial coverage during medical emergencies.
If you are looking to buy a new house, and are planning on taking a home loan, it would benefit you to go for a mortgage insurance. For further enquires and to know more benefits, you can get in touch with your insurance advisor.