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How would you structure your mortgage insurance cover?
Suppose that you have a mortgage of 1mil. Would you apply for a mortgage insurance cover for the full 1 mil? Or go for a cheaper term insurance of the same amount? Or maybe a mix of 500k mortgage insurance and 500k term insurance? If using a mix, what ratio would you suggest? If 100% pure mortgage insurance, which type would you suggest given that there are so many options like with decreasing coverage value, constant coverage, or even repayment of the entire capital after the loan tenure?
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Loh Tat Tian
12 Jun 2019
Founder at PolicyWoke (We Buy Insurance Policies)
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Clarence Chua
11 Jun 2019
Financial Planning Specialist at Prudential Assurance Singapore
As Hariz has mentioned, the rates are almost the same now especially if you are still young.
Getting a level term also helps take away the concern of being uninsurable when you get a second property.
Plus always good to have extra cash in times of needs.
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Hariz Arthur Maloy
10 Jun 2019
Independent Financial Advisor at Promiseland Independent
Right now term rates for level and decreasing term are almost the same.
I say go for level because ...
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If you are sitting on the fence, can opt for 50-50 coverage.
But since premium is almost the same (especially if you are still quite young, like 35 and cover only to 60) , buy a level premium term. Mortgage insurance can only be used for 1 property. Lvl personal term can be used for many use other than property. It's really how you structure them.