News & Articles Home Insurance – Why Do You Need It?
Home Insurance – Why Do You Need It?
28 Jul 2016
So you’ve purchased a new home. Congratulations! As with every major purchase in your life, you should always secure it the best way possible, be it for safety, financial security or even for your loved ones.
Mortgage officers would often recommend a form of insurance (MLTA or MRTA) when buying a new home. However, it’s seldom that they would explain to you the importance of having one.
Mortgage life insurance is aimed at providing security to your loved ones. In an unfortunate event of death or total permanent disability (TPD), your dependents are often left to pick up the pieces. This can be a heavy burden, especially if it’s an existing home loan that has yet to be settled in full. The loan is passed on to them to continue the repayments.
If you’re planning to pay off your mortgage within the next few years, then an MRTA or MLTA may not be your top priority, However if you’re planning to stretch the loan for the next 30 to 35 years, it will be best if you are protected.
These insurance policies are there to cover the balance of your loan in a situation that you’re no longer around to pay up the remainder, without placing the burden on your loved ones.
How much do I need to pay?
The amount of premium you need to pay for your MRTA or MLTA is subjected to your age, loan amount and loan tenure. The older you are and the higher the loan, the more premium you will have to pay.
*These figures are used as a reference as interest rates differ from insurer to insurer
Understand what you are purchasing is crucial in managing your money. If you are unable to pay the premium of MRTA, you can opt to finance the premium into the loan, however, that increases the instalments. Read on here on how to choose between MRTA & MLTA.
(中文版请看这里:http://goo.gl/YoMUn0)
Mortgage officers would often recommend a form of insurance (MLTA or MRTA) when buying a new home. However, it’s seldom that they would explain to you the importance of having one.
Mortgage life insurance is aimed at providing security to your loved ones. In an unfortunate event of death or total permanent disability (TPD), your dependents are often left to pick up the pieces. This can be a heavy burden, especially if it’s an existing home loan that has yet to be settled in full. The loan is passed on to them to continue the repayments.
If you’re planning to pay off your mortgage within the next few years, then an MRTA or MLTA may not be your top priority, However if you’re planning to stretch the loan for the next 30 to 35 years, it will be best if you are protected.
These insurance policies are there to cover the balance of your loan in a situation that you’re no longer around to pay up the remainder, without placing the burden on your loved ones.
How much do I need to pay?
The amount of premium you need to pay for your MRTA or MLTA is subjected to your age, loan amount and loan tenure. The older you are and the higher the loan, the more premium you will have to pay.
*These figures are used as a reference as interest rates differ from insurer to insurer
Understand what you are purchasing is crucial in managing your money. If you are unable to pay the premium of MRTA, you can opt to finance the premium into the loan, however, that increases the instalments. Read on here on how to choose between MRTA & MLTA.
(中文版请看这里:http://goo.gl/YoMUn0)
Source: DurianProperty.com
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