When’s the last time you did a review?
The need for asset protection needs no elaboration, especially if you’ve just purchased a new property. When something untoward happens to you,
- The family is saddled with mortgage payments
- They may not be able to service the loan and lose the house
- They may not be able to refinance with ease for lower rates and be at mercy of lenders
- They may be forced to sell the house during unfavourable times
- They may incur Seller Stamp Duty (4-12%) if the property is bought in recent years
Don’t expose yourself to uncovered risks. We have tied up with a Financial Adviser (FA) partner (fill up the form below) who will help you compare new plans with the latest product features and perhaps at a lower cost?
Compare All Latest Rates 2022
We like to share two common situations:
1. Create Extra Inheritance
Joe (not his real name) does not need a mortgage as he can buy a small studio unit for investment and pay $1m fully in cash. He still takes a home loan anyway because:
- He can buy a $750,000 mortgage insurance to match his loan and keep his cash of $750,000 for rainy days
- He now wills this property (which will be fully-paid on his death) to one child and leaves his cash holdings to his other remaining child
- All that for a small premium to pay yearly
2. Maximum Cover When Most Needed (Sandwiched Class)
Sarah (not her real name), 38 years old with two young kids, came to us in November 2018 to refinance her $734,000 home loan through MortgageWise. Not only did we get her the lowest fixed rates at that point in time, we introduced her to our FA partner to review her need for asset protection (something she didn’t get to do since her purchase.) The initial plan was to buy a typical mortgage insurance (MRTA) plan which would start with coverage of $734,000 to be reduced over 27 years of loan tenure. Our FA partner showed and compared for her the various options and costs, going beyond just mortgage insurance plans.
The end result – instead of paying $499* per annum (cheapest mortgage insurance plan in the market) for the next 27 years which would cost her $13,473 over the duration , she decided on a 10-year renewable and convertible term plan which pays a much higher $1m coverage for the period when she needed the most protection (age 38-47, with young kids and aging parents). And all that for the cost of only $390** per annum!
Like to know the difference between a traditional MRTA (mortgage reducing term insurance) plan versus that of a 10 to 20 years term plan with renewable and convertible features?
Speak to our FA partner today who will show you how, for the cost of merely $390** per year, you could achieve the twin-objective of inheritance creation and asset protection at the same time.
Speak To Our FA Partner Today!
(existing customers need not fill this but text your MortgageWise consultant)
This page does not constitute an offer or recommendation to enter into any transaction. We do not sell or market insurance products nor do we represent any insurance companies or financial institutions. Instead, we choose very carefully our partner, an IFA (independant financial advisor) licensed by MAS, whom we work with to bring the most complete mortgage advisory service and products to all our clients. You are fully responsible for your investment decision and you are advised to speak to a licensed financial advisor before committing to the purchase of any investment or insurance products.
*Annual premiums quoted for a conventional MRTA plan at 2% amortisation rate, for a healthy person (non-smoker) with no pre-existing medical conditions.
**Annual premiums quoted below for a 10-year renewable & convertible term cover for a healthy person (non-smoker) with no pre-existing medical conditions (premiums guaranteed for each 10-year period):
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