What is the difference between mortgage insurance and term insurance?

Which should I get to cover for my housing loan in Singapore?

We will provide all the information here.

Read on.

Difference Between Mortgage Insurance and Term Insurance

Mortgage insurance is a kind of term insurance that is also commonly known as mortgage reducing term assurance (MRTA) that will reduce in sum assured as you continue to pay off your home loan.

For term insurance, it does not reduce the sum assured as you continue to repay your housing loan.

For both policies, it will stop once the policy term is up.

The premium could be slightly higher for term insurance and another major difference is that for mortgage insurance, the policy is allowed to have joint-life (spouse and yourself) in one policy but for term insurance, it is not possible.

About Financialogy

 

We believe in empowering our readers with financial planning knowledge so that you can make a more informed decision. However, if you are looking for a one-stop provider, we have various insurance products like life insurance, whole life insurance, medical insurance and critical illness insurance that you may explore.

Our consultants are also trained in estate planning, legacy planning and retirement planning to give you a holistic view of your financial portfolio.

Want To Know More About Mortgage Insurance Vs. Term Insurance?

If you would like to know more about mortgage insurance or term insurance, you may contact us at (+65) 9380 2839 or you can click on the button below to enquire about the different financial services that we provide.

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About Us

We are a licensed and certified financial planner in Singapore that provides a comprehensive financial planning solutions to meet all your financial and insurance protection needs.

Contact Information

Address: 47 Scotts Road, Goldbell Towers, Singapore 228233

Contact Number: +65 9380 2839 

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