Anonymous
If i have fully paid the housing loan(condo), do i need to continue this mortgage insurance policy?
If not cancelled, can t be roll over to the next house?
Thank you
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Josh Tan Jian Liang
29 Nov 2019
Co-founder https://theastuteparent.com at Promiseland Independent Pte Ltd
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Pang Zhe Liang
28 Nov 2019
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
It depends on the exact nature of the policy itself, e.g. if it is under your name. If it is, then it is likely that you can use the same insurance for your next house.
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On the question on whether to cancel it or not, it depends on your existing insurance coverage, your needs now and in the future. To this end, a comprehensive insurance portfolio summary may be helpful. Here is why: https://www.blog.pzl.sg/why-every-client-needs-...
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Through this process, we will be able to understand if this policy forms part of your future needs and goals.
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Hi Anon,
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If the original objective of the mortgage insurance policy was to cover your mortgage liability and there is no use of it currently, you may discontinue it.
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I'd focus the suggestions more on your next house
If there is a new liability take a new policy that fits the loan size and mortgage duration. Rolling over does not fit the objective. Moreover, you do not know when you'd be buying yet.
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And when you do take a policy then, consider a few points
1) Nominate the policy. Ensure your beneficiary knows the objective is to clear the loan first.
2) Compare between term plans. For large sums above $1m, there are frequently discounts from insurers. You may even aggregate in some other term plans you have and do a replanning of what you need in total.
3) Consider level term plans vs decreasing term plans. In some instances, its much better value to take the level term plan.
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I've further suggestions here in this post with key tips on mortgage liability planning. Look for a qualfied financial planner if you've queries.