Excellent! ROSHI has found 5 Policies that suit your criteria.

Manulife ManuProtect Decreasing

0.0Good to Excellent
PROMO Receive up to $200 shopping vouchers* Valid till 31st Dec 2021
Free Quote

On Manulife's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

FWD Essential Life – Direct Term Purchase

0.0Good to Excellent
Free Quote

On FWD's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

NTUC Mortgage Term

0.0Good to Excellent
Free Quote

On Income's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

AVIVA MyProtector-Decreasing

0.0Good to Excellent
Free Quote

On Aviva's webite

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

AXA Decreasing Term Assurance

0.0Good to Excellent
INFO 10$ Cashback via Shopback Valid till 31st Dec 2021
Free Quote

On AXA's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

  • Mortgage Insurance Basics Basics

  • Tips and Hints

  • FAQs

  • Ask Away

What is Mortgage insurance and how does it work?

Mortgage insurance is also known as a “reducing term insurance.” Its main purpose is to ensure that the home owner’s home loan will be paid in the event of their death, disability or critical illness diagnosis.

The sum assured of a plan is traditionally linked to the home loan’s duration (e.g. 35 years repayment). Ideally, coverage should decrease alongside the policy holder’s remaining home loan and interest rate.

How to Choose the Best Mortgage Insurance

The suitability of different mortgage insurance plans will vary depending on your circumstances, but boils down to a few key questions:

  • What coverage do you want for your home loan?
  • How long do you want that coverage for? Check if the policy matches your home loan repayment period
  • Is the interest rate comparable to your mortgage loan interest rate?
  • Does the sum assured in the policy covers the full amount of your home loan?
  • What payment options are available? (i.e. monthly, quarterly, annually, etc.)

Most importantly – you should also be able to afford the premiums, so make sure you are comparing different providers to ensure you are getting the best deal.

It should be stressed that mortgage insurance plans should not be underestimated and can have a serious impact much further down the line if a policy hasn’t been examined thoroughly. While you can do all the heavy lifting yourself, we also recommend that you speak to your financial advisor for that extra peace of mind.

Best Mortgage Insurance in Singapore (2021)

Insurance PlanBest For
FWD Essential Life - Direct Term PurchaseCancer ProtectionApply Now
Manulife ManuProtect DecreasingPolicy Term Flexibility Apply Now
AXA Decreasing Term AssuranceInterest Rate OptionsApply Now

Differences to level term insurance?

The sum assured of a policy tends to reduce annually and in proportion to your remaining loan amount and duration. Term insurances specifically provide more levelled and consistent coverage throughout the policy term.

Mortgage Insurance vs Home Protection Scheme vs Term Insurance

There are a lot of terms that get thrown around so to provide some clarity we’ve broken down their definitions below:

Home Protection Scheme
This applies mostly to owners of HDB flats who are paying off home loans using CPF Ordinary Account (OA)
Mortgage Insurance
This is compulsory insurance that must be purchased by HDB flat owners using CPF but are applying for HPS exemption. Mortgage insurance is recommended for owners of condominiums and private properties
Term Insurance
This is compulsory insurance that must be purchased by HDB flat owners using CPF but are applying for HPS exemption. Term insurance is recommended for owners of condominiums and private properties

Take advantage of the “free look” period

The cooling off period after you purchase your policy allows for some wiggle room where you can make changes to your policy, or even reject it altogether if you happen to come across a better one. Make sure you find out how long this period lasts for however, and when it actually begins, as it varies with different providers.

Compare apples to apples

When getting quotes make sure you are comparing the same thing – term life policies generally have lower premiums than permanent life policies thus the big difference in price, but they are two very different things! It’s important to examine the detail and read the fine print – not just go by the monthly premium.

Understand that life insurance is designed for protection

The main idea behind life insurance is to ensure your beneficiaries are protected financially in the event of your death. Despite some permanent life insurance policies having potential to allow policy holders to earn cash value over time, policies should be considered as a means of protection first, and not as a method of investment.

Enhance your coverage with policy riders if necessary

Riders or endorsements are extra ways to add customization to your policy to better suit your needs and budget. When you decide on a policy, make sure to ask about what riders are available to be purchased alongside.

Buy from a reputable life insurance company

Not all companies are the same! It is important to do the background on the insurance providers and ensure they are reliable prior to committing to one of their products.

What are the riders available?

Riders available for mortgage insurance vary depending on what you want, commonly selected extras include coverage for scenarios such as:

  • Total and permanent disability
  • Advanced Stage Critical Illness
  • Premium Waiver Rider for Critical Illness

What are the coverage period like?

Mortgage insurance providers like to match the typical maximum loan tenure for mortgages from banks, so you can expect coverage for up to 35 years.

Are the premiums guaranteed?

For the majority of insurers, yes (the premiums for death and total and permanent disability benefits especially).

A caveat to bear in mind is that premiums for riders such as the Advance Stage Critical Illness and the Critical Illness Waiver are not guaranteed. These premiums may change depending on the insurer’s future claims history.

Is mortgage-reducing insurance only applicable for home owners?

Surprisingly, no, many providers allow you to take policies out without a home. However, if you want to take out a policy that provides coverage is above a certain monetary threshold, some companies may request for mortgage statements. If you fall below this threshold, the provider may waive this requirement.

I have CPF Home Protection Scheme (HPS), can I still apply for a mortgage insurance?

Yes. Also, if your private coverage is adequate enough (and covers mortgage reducing term insurance), you can apply for HPS exemption.

Can I pay for mortgage insurance through my CPF OA?

No. Mortgage insurance can only be paid in cash.

Why should I get Mortgage Reducing Insurance?

Mortgage reducing insurance is a relatively low-cost way to protect your mortgage liabilities, or, if you want more levelled coverage, term insurance may be a better option.

Must the sum assured be the same as my loan amount?

If you own a private property or executive condominium, no – this also applies to the tenure of the coverage.

Is mortgage insurance compulsory for all home owners with home loan?

It’s not compulsory, however some banks have a prerequisite of obtaining insurance prior to granting access special home loan rates. Mortgage insurance is recommended for those who own a HDB and wish to seek HPS exemption.

Have a question? Ask us about anything!

You're in good hands. Our team is happy to answer all of your question. Fill out the form and we'll be in touch as soon as possible.