11:37 24 May 2013
Below are the questions that you need to ask to fully understand mortgage life assurance. Get the answers you need to know if it’s worth your money.
Q: What is Mortgage Life Assurance?
A: This is a policy designed to repay mortgage debt should the borrower dies within set number of years. Instead of insurance, it is called as assurance because is it for something that is certain to happen.
Q: Is there a way to lower down the premiums?
A: Borrowers who appear to be less likely to die within the specified terms are more likely to get lower premiums. However, smokers and those who have severe medical conditions are definitely going to pay higher monthly premiums.
Q: Can I take it out together with my partner/spouse?
A: Yes, this can be your option. Joint policies pay out on the first death. However, standalone products compared to joint policies are generally cheaper.
Q: Am I protected if the insurer goes bankrupt?
A: Yes. Mortgage Life Assurance policies are covered by Financial Services Compensation Schemes as banks.
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