Mortgage insurance protects your home loan in case you die or cannot repay due to disability or job loss. When you take a home loan, the bank wants to make sure the loan will be repaid even if something happens to you. That’s where mortgage insurance helps.
If you die during the loan period, the insurance company pays the remaining loan amount directly to the bank. This keeps your family safe from losing the house or facing loan pressure.
There are two types of mortgage insurance:
- Term-based: Coverage reduces as you repay your loan.
- Level-based: Coverage remains the same throughout the loan term.
Mortgage insurance is usually low in cost and can be taken for the same number of years as your loan. It gives peace of mind knowing your home is protected, even in difficult times.
