Mortgage Insurance for Pte Condo

[Panerex77]

Pte Condo owners out there...while we know it is notcompulsory to buy Mortgage Insurance for Pte Condos, do you still do it foryour purchases?

I was wondering if such Mortgage Insurances (typically sumassured-reducing term plans with no cash value) are redundant, since we couldalready be covered for Life/ TPD/ Critical Illness from existing insurancepolicies.
One point of argument I feel is that if existing Life/ TPD/Critical Illness' sum assured is less than value of the Pte Condo purchase,then it will be more prudent to get the Mortgage Insurances for the additionalcoverage. Not sure if you experts outthere feel the same way.

And if you do purchase a Mortgage Insurance, will you adviseto go for single or joint policy? Jointpolicy being cheaper overall but with one-half the coverage as compared tosingle.
And necessary to add Critical Illness coverage (which ithink is very expensive) or simply a Critical Illness waiver coverage will do?

Well, you could be thinking no point for mme to ask thisquestion since ultimately, it all boils down to my affordability level. If i can afford it, then just get the highestcoverage possible.
I just want to seek further comments from a diversified poolof pple out there (assumingly without vested interests), rather than solelyrelying on my insurance agent's advice.

[ikan bilis]

- me do not buy life insurance since started working... right now i only have fire insurance and mortgage protector for all my mortgages...
- i do not trust insurance companies since long ago... (haha... aig also near collapse)... also ikan bilis income cannot afford...
- ntuc-income might be cheaper for the mortgage insurance
- i believe mortage protector could be some cheapest form of life insurance...
- mortgage protector suits me, as i only need "more protection" when newly bought some properties... after 4-5yrs, my financial position builds up again...
- my friend has some insurance package that covers everthing (medical, mortage, life, accident, husby+wife joint)... that type could be the best deal... talk to your agent for full package...

[Rosy]

Always good to get it for your primary residence.

[silver023]

I did not get.

It's not redundant as you cannot compare with your life policies. If not mistaken, depending on the policy, mortgage insurance can pay up the entire amount of outstanding mortgage should the insured pass away. so this should be additional $ on top of the normal life insurances.

However, mortgage insurance is expensive with no returns (if nothing happens to insured). And, mortgage insurance does not pay any medical bills (which can be extremely high in SG).

So, for me, I'd rather buy medical insurance that are investment-linked

[DaytonaSS]

Pte Condo owners out there...while we know it is notcompulsory to buy Mortgage Insurance for Pte Condos, do you still do it foryour purchases?

I was wondering if such Mortgage Insurances (typically sumassured-reducing term plans with no cash value) are redundant, since we couldalready be covered for Life/ TPD/ Critical Illness from existing insurancepolicies.
One point of argument I feel is that if existing Life/ TPD/Critical Illness' sum assured is less than value of the Pte Condo purchase,then it will be more prudent to get the Mortgage Insurances for the additionalcoverage. Not sure if you experts outthere feel the same way.

And if you do purchase a Mortgage Insurance, will you adviseto go for single or joint policy? Jointpolicy being cheaper overall but with one-half the coverage as compared tosingle.
And necessary to add Critical Illness coverage (which ithink is very expensive) or simply a Critical Illness waiver coverage will do?

Well, you could be thinking no point for mme to ask thisquestion since ultimately, it all boils down to my affordability level. If i can afford it, then just get the highestcoverage possible.
I just want to seek further comments from a diversified poolof pple out there (assumingly without vested interests), rather than solelyrelying on my insurance agent's advice.

1m whole life insurance cost min 20k premium.

1m mortgage reducing term ard <$1k premium, very cheap

Single life offers the best value. Not cheapest but best value

Sorry to say this, can't afford mortgage insurance better don't buy $million dollars property, don't leave the poor spouse with millions of debt. If one leaves, leave an asset . The above is my personal opinion.

[ikan bilis]

1m whole life insurance cost min 20k premium.

1m mortgage reducing term ard <$1k premium, very cheap

.....

cannot compare orange to apple like that 1...

mortgage insurance is term insurance... and the insured amount keeps reducing every year with same yearly premium hor (but may be can get around with: asking your agent to assume 20-30% interest rate)...

[DaytonaSS]

cannot compare orange to apple like that 1...

mortgage insurance is term insurance... and the insured amount keeps reducing every year with same yearly premium hor (but may be can get around with: asking your agent to assume 20-30% interest rate)...

my point is.... its cheap, cheapest way to buy cover. In life, alot of ways to save $$$. Dont save on things that really matters.

Such cheap premium shouldnt be "saved" if one is committing to millions in loans.

[ikan bilis]

my point is.... its cheap, cheapest way to buy cover. In life, alot of ways to save $$$. Dont save on things that really matters.

Such cheap premium shouldnt be "saved" if one is committing to millions in loans.

that's true...

[phantom_opera]

u definitely need a reducing term insurance if you do not have other types of insurances

[minority]

Just buy term insurance on outstanding amount for primary place to stay. For investment no need to buy. Rental n cover . If not sell the prop. Just some smaller amount of term say 200-300k if have a few investment prop to cover the mthly premium n expensed for luv ones while holding the prrop pending decision what to do with it.

As long primary residence is cover luv 1s have a roof should be good enough. Over insure no pt.

[phantom_opera]

for primary residence insure the remaining full amount on loan, investment still wise to cover 50% of loan just in case ... dun really understand why want to save on this kind of thing ... it is so cheap, even cheaper than income tax

[lifeline]

Just buy term insurance on outstanding amount for primary place to stay. For investment no need to buy. Rental n cover . If not sell the prop. Just some smaller amount of term say 200-300k if have a few investment prop to cover the mthly premium n expensed for luv ones while holding the prrop pending decision what to do with it.

As long primary residence is cover luv 1s have a roof should be good enough. Over insure no pt.

*Like* !

You have summarised my thoughts so nicely. Used to think need to get for my primary property, until my guru friend said why not invest that amount in something like another property instead. Just sell that property when needed. Of course must have your basics all covered first, finish paying loan for primary property asap, primary policies, hospitalisation insurance including paying rider for copayment, basic education policies for children, ... We all have our learning curves, last time was "conned" into buying teps... traded endowment policy... lost fair bit here along with tons of opportunity costs.

[DaytonaSS]

Just buy term insurance on outstanding amount for primary place to stay. For investment no need to buy. Rental n cover . If not sell the prop. Just some smaller amount of term say 200-300k if have a few investment prop to cover the mthly premium n expensed for luv ones while holding the prrop pending decision what to do with it.

As long primary residence is cover luv 1s have a roof should be good enough. Over insure no pt.

But bro, it's just few hundred a year..... Not enough for u to go a 5 days holiday..... Way cheaper than term wor.... Investment property buy also only affect like a small portion of rental for 1 month only......

My point is (again) if invest hundreds of thousands, for investment property or home stay, y keng so much for a few hundred a year "thing". If unfortunately premature death, at least leave a few properties fully paid up for your loved ones. If nothing happens , life goes on...... That few hundred a year won't hurt

[fclim]

Yes, should buy for own home. Many types out there. Total outlay for say 20 years should be around $50K. Buy when younger to enjoy lower premiums.

[kane]

I agree with Daytona's points.

[chiaberry]

Yes, should buy for own home. Many types out there. Total outlay for say 20 years should be around $50K. Buy when younger to enjoy lower premiums.

I agree. Buy when younger. And don't terminate the policy when you upgrade and sell off the pty. Continue to pay and it will help cover your new purchase(s) as well.

[hyenergix]

I agree. Buy when younger. And don't terminate the policy when you upgrade and sell off the pty. Continue to pay and it will help cover your new purchase(s) as well.

Is this insurance specific for the property? Interesting to note yours is transferable to a new property.

[chiaberry]

Is this insurance specific for the property? Interesting to note yours is transferable to a new property.

When you buy the insurance, you have to sign some paper to "assign" it to the property. Meaning the proceeds will be used to pay off the property and is not available for other purposes. Ask your lawyer to do the paperwork to change the assignment to the new property.

If you want to retain flexibility and make use of lower premiums at a young age, consider getting a term insurance. The amount doesn't reduce but you are fully covered for the term.

Even better if you can afford an endowment policy. At the end of the term, you get your money back. I had bought endowment policies for my properties in the UK more than 20 years ago. They were for the purpose of paying off my housing loans. When I sold the houses, I kept the policies. And now they are maturing. Of course inflation meant that what I get from the proceeds cannot buy a similar house at current prices but at least I get back something with a bit of yield of roughly ? 5% (estimating). And the premiums look small by today's standard (because of inflation). If you are going to be a house buyer/owner for most of your life, consider carefully the insurance that you take out. Study all the options carefully.

Heads up......the cheapest term insurance is through a group insurance eg AA or Safra have them - worth grabbing. It won't cover a million dollars but at least it can cover a few hundred K.

[hyenergix]

When you buy the insurance, you have to sign some paper to "assign" it to the property. Meaning the proceeds will be used to pay off the property and is not available for other purposes. Ask your lawyer to do the paperwork to change the assignment to the new property.

If you want to retain flexibility and make use of lower premiums at a young age, consider getting a term insurance. The amount doesn't reduce but you are fully covered for the term.

Even better if you can afford an endowment policy. At the end of the term, you get your money back. I had bought endowment policies for my properties in the UK more than 20 years ago. They were for the purpose of paying off my housing loans. When I sold the houses, I kept the policies. And now they are maturing. Of course inflation meant that what I get from the proceeds cannot buy a similar house at current prices but at least I get back something with a bit of yield of roughly ? 5% (estimating). And the premiums look small by today's standard (because of inflation). If you are going to be a house buyer/owner for most of your life, consider carefully the insurance that you take out. Study all the options carefully.

Heads up......the cheapest term insurance is through a group insurance eg AA or Safra have them - worth grabbing. It won't cover a million dollars but at least it can cover a few hundred K.

Thanks for e tips.

[chiaberry]

You're welcome.

Safra term insurance for age group 31 to 45 is $381 per year for 300K cover. Their critical illness cover is $484 for 200K. AA protector is $364.80 for 300K (age up to 44). There is also another insurance for NS men /ex-NS men (IDK details because I'm not one). I thought they were a much better deal than getting MRTA as the coverage is level (not reducing) through the term. The premiums do go up with age. But you can stop paying if you have accumulated enough assets to back your liabilities in the future.

Insurance agents will hate me for giving you the tips.
But please support as a larger client base will mean the premiums can stay affordable for these group policies. Cheers!