Morgage Protector Insurance

[samantha.lkh 0]

It is interesting to know that insurance company (bank appointed, as part of bank loan package i signed) started deducting premium for my Morgage Protector insurance weeks before my 1st appointment. Is this normal? does it mean even though bank has not yet released the loan, i am not legally own the flat and if anything happen to me, my morgage is fully protected and property goes to my parent, slibling etc??? the young lady from bank assured me it is but the seller can withdraw the sale anytime during 1st or 2nd appointment right? hmmm...

[blueocean 0]

Sounds odd to me .....

It is interesting to know that insurance company (bank appointed, as part of bank loan package i signed) started deducting premium for my Morgage Protector insurance weeks before my 1st appointment. Is this normal? does it mean even though bank has not yet released the loan, i am not legally own the flat and if anything happen to me, my morgage is fully protected and property goes to my parent, slibling etc??? the young lady from bank assured me it is but the seller can withdraw the sale anytime during 1st or 2nd appointment right? hmmm...

[roytan30 1]

It is interesting to know that insurance company (bank appointed, as part of bank loan package i signed) started deducting premium for my Morgage Protector insurance weeks before my 1st appointment. Is this normal? does it mean even though bank has not yet released the loan, i am not legally own the flat and if anything happen to me, my morgage is fully protected and property goes to my parent, slibling etc??? the young lady from bank assured me it is but the seller can withdraw the sale anytime during 1st or 2nd appointment right? hmmm...

Hi

I might taking a loan which is alos have "Morgage Protector insurance" may i know how much are paying for the premium?

Thank you

[bepgof 20]

It is interesting to know that insurance company (bank appointed, as part of bank loan package i signed) started deducting premium for my Morgage Protector insurance weeks before my 1st appointment. Is this normal? does it mean even though bank has not yet released the loan, i am not legally own the flat and if anything happen to me, my morgage is fully protected and property goes to my parent, slibling etc??? the young lady from bank assured me it is but the seller can withdraw the sale anytime during 1st or 2nd appointment right? hmmm...

The fundamental "insurable interest" for the mortgage protector insurance (life, sickness, accident against property)to be established is the property. This entity has "insurable interest". Human is an entity, a company is also an entity. There is now no property to be insured yet, so why pay consideration ($)?? Towards what?? Then must be the "insurance company"'s pocket.

Ask insurance agents what is "insurable interest". And why this fundamental term so important, no such, no insurance can be established upon.

Edited August 5, 2010 by bepgof

[tinkroper 0]

Hi

I might taking a loan which is alos have "Morgage Protector insurance" may i know how much are paying for the premium?

Thank you

Hi...roytan

For mortgages with terms 15 years and less and with loan to value ratios 90 percent and greater, the annual mortgage insurance premiums will be canceled when the loan to value ratio reaches 78 percent, irrespective of the length of time the mortgagor has paid the annual mortgage premiums.Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums.

Hope this helps you..

[muffin 2]

it did sound strange, did u clarify with the bank? the insurance should start only when u start paying your mortagage loan.

[manutd1972 1]

same situation here. my banker also cannot give me a satisfactory answer.

when i bought my current flat, i also dun remember my home mortgage insurance coverage starting months before the completion of sale. that time, the coverage was timed to coincide with the 2nd appt. this time round, the insurance coverage started way before my 1st appt.

as far as i'm concerned, i'm paying extra for nothing during the few months between the coverage commencement date and the completion of sale. suppose sth happens to me during those months, the payout goes to who? logically, since the policy is suppose to cover the intended mortgage, the payout shld go to the bank. but since the mortgage has not been paid due to the sale not being completed, wouldn't the bank den have earned a tidy sum of money?

now if the insurance co says since the loan has not been drawn down yet, so no payout is required, then wouldn't the insurance company have earned my premium for nothing?

[samantha.lkh 0]

same situation here. my banker also cannot give me a satisfactory answer.

when i bought my current flat, i also dun remember my home mortgage insurance coverage starting months before the completion of sale. that time, the coverage was timed to coincide with the 2nd appt. this time round, the insurance coverage started way before my 1st appt.

as far as i'm concerned, i'm paying extra for nothing during the few months between the coverage commencement date and the completion of sale. suppose sth happens to me during those months, the payout goes to who? logically, since the policy is suppose to cover the intended mortgage, the payout shld go to the bank. but since the mortgage has not been paid due to the sale not being completed, wouldn't the bank den have earned a tidy sum of money?

now if the insurance co says since the loan has not been drawn down yet, so no payout is required, then wouldn't the insurance company have earned my premium for nothing?

both hands both legs agreed!!! i called e insurance co. they asked me talk to e bank. i called e bank, e lady handle my insurance just said - "it is like that". i fainted. i hang out my phone. no point continue conversation to ppl giving me such a reply.

[EmptyDivided 0]

If clarifications are not clear, you should go back to the bank, look for the Branch manager and ask them for a satisfactory answer. There should be a Financial consultant at the bank working for the representing insurance company who should be able to give you answers.

I was advised that once the option is exercised, I would be liable for the property even though the bank loan is not disbursed. As long as I have signed the facility letter, there is a binding. Therefore to ensure my family will not have difficulties, (touch wood) if anything were to happen to me, it would be wiser to pay for the extra three months. I hope this helps.

[nikku 0]

Mortgage protection is an insurance coverage a homeowner can purchase to ensure that- on the event

that they lose their job or they are otherwise unable to continue Mortgage payments- their mortgage will be paid by the insurer.

Edited September 15, 2010 by nikku

[RimBlock 0]

Mortgage protection is an insurance coverage a homeowner can purchase to ensure that- on the event

that they lose their job or they are otherwise unable to continue Mortgage payments- their mortgage will be paid by the insurer.

Hi Nukku,

Would be interested to know which company covers unemployment in their mortgage protector scheme.

We were pushed one via OCBC when we signed up for our loan. Both my wife and myself were insured for 100% meaning if either of us pass away or have a critical illness the whole mortgage would be paid off. You do not have to insure for both having 100% though, you could do 50% each but with one person gone, the other would still be liable for the remaining 50% of the mortgage.

We are due to get our keys at the end of December so I refused to sign for the mortgage protector policy.

The OCBC agent explained that after signing the contract we are legally indebted to pay the mortgage whether it had been paid out or not yet so if either myself or my wife were to pass away, the loan would be repaid in full before it was even given to us.

This sounded reasonable until I pointed out that the mortgage agreement we had just signed has a clause that we can cancel at any time before the loan is dispensed to us for a nominal fee.

We looked around and found another protection scheme which is S$15 less each per month.

We will not be signing until we sign for the 2nd appointment (or just before).

RB

[kenrickk 0]

Hi Nukku,

Would be interested to know which company covers unemployment in their mortgage protector scheme.

We were pushed one via OCBC when we signed up for our loan. Both my wife and myself were insured for 100% meaning if either of us pass away or have a critical illness the whole mortgage would be paid off. You do not have to insure for both having 100% though, you could do 50% each but with one person gone, the other would still be liable for the remaining 50% of the mortgage.

You should not be paying the premium until you actually get the loan and get the property. Normally, you can just pay a week or so before your second appointment. That's why if you take HPS from CPF direct, your first premium will be deducted only at your 2nd appointment. However, HPS is a bit more expensive than private mortgage insurance.

One point to take note from what you mentioned above, NO Mortgage Insurance plan in Singapore has the coverage for Critical Illness unless they sell another separate critical illness insurance plan together which will be much more expensive (at least double) than normal mortgage insurance plan. Some, so call consultants, from bank don't know what they are really selling. I think they do not mean to cheat you, but they also don't know properly. They see the critical illness definitions in the quotation, so they think that it has critical illness protection as well. Actually, it is only the critical illness waiver, not the lump sum payment for critical illness.

All mortgage insurance plans in Singapore have cover for only Death and Total Disability, some have terminal illness (not critical illness). Critical illness coverage is only for the waiver of premium for your mortgage plan. So, if either of you pass away, the whole mortgage will be paid off. If either of you become total and permanently disable, they will either pay the whole mortgage or pay your mortgage installment (depends on the company). If terminal illness is included, which is if a doctor comment that you will live not more than 12 months, then insurance company will pay the mortgage installments for next 12 months and then paid off the whole mortgage afterthat. For critical illness, all the future premium you need to pay for the mortgage insurance will be waived, but your mortgage will not be paid off. You still need to pay for your mortgage yourself.

And, there is no such insurance that will pay your mortgage for you if you lose your job. If there is such thing, i want to get also. (I am a consultant myself)

Hope this info will help.

Edited October 23, 2010 by kenrickk

[sck13 0]

One point to take note from what you mentioned above, NO Mortgage Insurance plan in Singapore has the coverage for Critical Illness unless they sell another separate critical illness insurance plan together which will be much more expensive (at least double) than normal mortgage insurance plan. Some, so call consultants, from bank don't know what they are really selling. I think they do not mean to cheat you, but they also don't know properly. They see the critical illness definitions in the quotation, so they think that it has critical illness protection as well. Actually, it is only the critical illness waiver, not the lump sum payment for critical illness.

All mortgage insurance plans in Singapore have cover for only Death and Total Disability, some have terminal illness (not critical illness). Critical illness coverage is only for the waiver of premium for your mortgage plan. So, if either of you pass away, the whole mortgage will be paid off. If either of you become total and permanently disable, they will either pay the whole mortgage or pay your mortgage installment (depends on the company). If terminal illness is included, which is if a doctor comment that you will live not more than 12 months, then insurance company will pay the mortgage installments for next 12 months and then paid off the whole mortgage afterthat. For critical illness, all the future premium you need to pay for the mortgage insurance will be waived, but your mortgage will not be paid off. You still need to pay for your mortgage yourself.

I am not sure about those mortgage insurance plan that is tied with a bank loan. There are in fact mortgage insurance plan that cover critical illness instead of a waiver (in case of critical illness). I am looking for that and managed to find it. 2nd appt with HDB is 16th Dec. Sleep better knowing that I do not have to pay loan if I come down with critical illness. Imagine with all the big bills and still have to find money for home loan.