Mortgage Insurance
Mortgage insurance products are insurance tools that help an individual buy a house with a low down payment - less than the usual average of 20 per cent. If, for any reason, the borrower stops making payments, mortgage insurance protects the lender from financial loss.
Benefits of Mortgage Insurance
Mortgage insurance not only can make a big difference in how quickly your mortgage loan is approved, it can help you buy your home with a lower down payment than you expected. Mortgage insurance is temporary insurance, you may be able to cancel it after you have acquired 20 percent equity in your home.
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The Mortgage Redemption Assurance policy (without profits) plan is designed to meet the requirements of the policy holding individual who seeks to ensure that all his outstanding loans and debts are automatically paid up in the event of his demise.
Under the Mortgage Redemption Assurance policy (without profits)
- The proponent will have to bear the cost of the mandatory medical examination.
- The policies are usually issued only to male lives aged 50 years or lesser.
- The policies are subject to a condition that the insurance cover would not extend beyond 65 years. All loans must be liquidated by the time the borrower attains the age of 65.
- The policies bear no surrender value.
Suitable For:
Middle-aged to elderly professionals whose dependents might need assistance in clearing their debts in case of their unexpected demise are most suited for the Mortgage Redemption Assurance policy.
