Term Life

Income Mortgage Term: Protecting Your Home and Loved Ones

When you purchase a home, it's more than just a property – it's a dream, a sanctuary, and a legacy for your family. But what happens to that dream if something unexpected happens to you? This is where Income Mortgage Term insurance comes in. Let's dive deep into this product and understand how it can provide peace of mind for homeowners like you .

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What is Income Mortgage Term Insurance?

Income Mortgage Term is a specialized term life insurance policy designed to protect your mortgage loan in the event of death, total and permanent disability (TPD before age 70), or terminal illness. It ensures that your loved ones won't be burdened with mortgage payments if you're no longer able to make them.

Key Features That Make Income Mortgage Term Stand Out

Comprehensive Coverage

Protects against death, total and permanent disability (TPD before age 70), and terminal illness. The sum assured can be used to pay off the balance of your mortgage loan.

Flexible Policy Term

Choose a policy term from 5 to 35 years. Coverage up to a maximum age of 84.

Customizable Loan Interest Rates

Select from a range of interest rates (1% to 7%) to ensure adequate coverage.

Enhanced Protection with Riders

Option to add riders for extra coverage and premium waivers.

Premium Payment Flexibility

Pay premiums only until 2 years before the end of your selected policy term.

Real premiums suggested for Income Mortgage Term

34, Female making $10,000 a month

Coverage:
tpd
$1,100,000
death
$1,100,000
Premium:
Not provided
Read More
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Why Consider Income Mortgage Term?

Imagine this scenario: You've just bought your dream home, and you're excited about the future. But life is unpredictable. What if something happens to you? Without proper protection, your family might struggle to keep up with mortgage payments, potentially losing the home you worked so hard to provide.

Income Mortgage Term addresses this concern head-on. It provides a safety net, ensuring that your mortgage can be paid off even if you're not around to do it yourself . This means your family can keep their home, maintaining stability during an already difficult time.

How Does Income Mortgage Term Work?

Let's break it down with a real-life example:

Meet Mr. Lee, a 40-year-old homeowner with a $500,000 mortgage loan. He decides to sign up for Income Mortgage Term with the following details:

  • Loan amount: $500,000
  • Loan interest rate: 3%
  • Policy term: 25 years
  • Monthly premium: $61 (payable for 23 years)

Now, let's fast forward 10 years. Mr. Lee is now 50 years old when he unfortunately suffers a stroke that causes total and permanent disability. Here's what happens:

  • Income Mortgage Term pays out a sum assured of $360,679
  • This amount can be used to pay off the remaining mortgage loan
  • Mr. Lee's family can keep their home without worrying about future mortgage payments

This example illustrates how Income Mortgage Term can be a lifeline in times of crisis, providing financial protection when it's needed most .

Customizing Your Coverage

One of the strengths of Income Mortgage Term is its flexibility. Here's how you can tailor the policy to your needs:

Policy Term

Choose a term that matches your mortgage period, from 5 to 35 years. This ensures you're covered for as long as you have mortgage obligations.

Loan Interest Rate

Select an interest rate between 1% and 7% to match your actual mortgage terms. This helps ensure your coverage aligns with your actual loan balance over time.

Additional Riders

Enhance your protection with optional riders like Essential Protect, Payor Premium Waiver, Enhanced Payor Premium Waiver, and Dread Disease Premium Waiver. These can provide an extra layer of financial security.

Understanding the Costs

The cost of Income Mortgage Term varies based on factors like your age, the sum assured, policy term, and chosen interest rate. In our example, Mr. Lee paid $61 per month for a $500,000 loan over 25 years.

It's important to note that you only pay premiums for the policy term minus two years . For instance, if you choose a 25-year term, you'll only pay premiums for 23 years. This can provide some financial relief in the later years of your mortgage.

Pros and Cons of Income Mortgage Term

Pros

  • Tailored specifically for mortgage protection

  • Flexible policy terms and interest rates

  • Coverage for death, TPD, and terminal illness

  • Option to enhance protection with riders

  • Premiums payable for policy term minus two years

Cons

  • No cash value (unlike whole life insurance)

  • Coverage decreases over time as your mortgage balance decreases

  • May be more expensive than some basic term life insurance policies

Who Should Consider Income Mortgage Term?

This policy is particularly suitable for:

  1. New homeowners with significant mortgage debt
  1. Those who want peace of mind that their family can keep their home if something happens to them
  1. Individuals who prefer a specialized policy for mortgage protection rather than using a general term life insurance policy

Frequently Asked Questions

Can I change my coverage amount if my mortgage changes?

You should check with Income about options for adjusting your coverage.

What happens if I pay off my mortgage early?

The policy continues until the end of the term. You might want to review your coverage needs at that point.

Are the premiums guaranteed to stay the same?

Check with Income about their premium guarantee policy.

What's not covered by this policy?

Like most insurance policies, there may be exclusions. Review the policy document carefully or ask an Income advisor for details.

Can I convert this to a permanent life insurance policy later?

This is typically not an option with mortgage term insurance, but you should confirm with Income.

Conclusion

Income Mortgage Term offers a specialized solution for homeowners who want to ensure their mortgage is protected against life's uncertainties . Its flexibility in terms and rates, along with the option to add riders, makes it a comprehensive choice for many.

However, as with any financial decision, it's crucial to consider your unique situation. While mortgage protection is important, it should be part of a broader financial plan that includes other types of insurance and investments.

Ready to explore your options further? Don't rely on just one perspective. Get expert insights tailored to your unique needs . Sign up now to receive 5 expert opinions on mortgage protection insurance. These professionals will review your specific situation and provide personalized recommendations, helping you make the most informed decision possible.

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By consulting with multiple experts, you'll gain a comprehensive understanding of your options and ensure you're choosing the best coverage for your home and loved ones. Don't leave your family's financial future to chance – get the expert advice you deserve today.

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Why people were suggested Income Mortgage Term

ST
ST, 34
GenderFemale
Monthly Income$10,000
Insurance Types Suggested
  • Disability
  • Critical Illness
  • Endowment
  • Investment Linked Plan
  • Term Life
  • Personal Accident
  • Whole Life
  • Hospital
Why Income Replacement Plan was suggested:
This plan is suggested to provide income replacement in case of unforeseen life events. It aligns with the MAS guideline of having 9 times annual income coverage for death and TPD. Given the prospect's annual income of $120,000, this coverage amount ensures financial security for their dependents.
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