Purchasing one’s own house is one of the major milestones that any individual crosses in one’s life. While the feeling is eccentric it is also one of the biggest investments of one’s life, which is why we encourage you to fully prepare your financial future around it.
We are here to help and here are a few tips and guides to help you with your decision on purchasing your insurance policy.
The type of insurance policies you need
Here are four types of insurance you need to consider while purchasing a mortgage.
- Buildings insurance
Buildings insurance, like the name, quite suggests is an insurance policy that secures your building and we like to emphasise of this type of policy as a compulsion rather than an option.
These insurance policies help secure your building against any damages that might happen to your home. These policies could save you a fortune if your home were damaged by calamities like flood, fire, earthquake etc.
Without building insurance you will have to be mentally prepared and bring your A-game while paying both for the damage and your mortgage.
- Life insurance
A life insurance policy is the traditional and most sort out an insurance policy and it could help a lot in paying off your mortgage if you die before you can pay off the total amount.
A life insurance policy is of two types:
- Level term life insurance
- Decreasing term life insurance
A decreasing term life insurance is also known as a mortgage life insurance and is usually the one individual prefer for repayment of mortgage purposes. It is cheaper than a term life insurance and is engineered for mortgage repayment.
- Critical illness Insurance
Critical illness insurance pays out a lump-sum in case the policy-holder is diagnosed with a critical illness and cannot work. The insurance payout pays off a non-taxable amount and the money can be used in any way the policy-holder desires including payment of a mortgage, monthly bills etc.
- Income protection insurance
Income protection insurance is similar to critical illness insurance, however, the payout is received in the form of monthly payments and the insurance policy is designed to replace your monthly income. This makes sure that you have a monthly inflow of money until you are well enough to return to work or retire. You can use this money to repay your mortgage and your other monthly bills.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00