- Mortgage insurance covers mortgage payments, in full or in part, in the event of death or disability of the insured person. It is therefore insurance that diminishes over time as your mortgage balance drops.
- In the event of disability, the insurer covers the insured portion of the monthly mortgage payments, not exceeding a predetermined limit.
- In the event of a critical illness, the sum paid out by the insurer is equal to your mortgage balance.
- In the event of death, the sum paid out by the insurer is equal to your mortgage balance.
- The norm in the industry is that the insurer and the financial institution that issues the loan are not related in any way; this means that the benefit is paid out in the name of the insured person and can then be used to pay off the mortgage. This type of policy can be sold individually or in combination with other types of life and health insurance.
- Mortgage insurance guarantees the insured person and his or her loved ones that a loan will not become a burden in the event of a disability, a critical illness or death.
- Mortgage insurance is a perfect add-on to disability insurance. In fact, disability insurance often only covers two-thirds of the insured person’s regular pay, while the mortgage payments-a major expense-remain the same.
Personal Loan Insurance
- Personal loan insurance is very similar to mortgage insurance. It covers the payments of a personal loan in the event of death or disability of the insured person.
- The amount of coverage therefore varies with the balance of the loan.
- The insurer and the lender institution are linked. In other words, benefits are applied directly to the insured person’s account at the financial institution.
- This type of insurance policy is sold with the personal loan.
- This coverage guarantees the insured person and his or her loved ones that a loan will not become a burden in the event of death or disability.
- The cost decreases with the balance of the loan.
Warning: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.