Refundable Premium Mortgage Insurance Plan

OCBC introduced a refundable premium mortgage insurance plan when home buyers fork out yearly premiums and they get to receive the premium paid when the policy end if they do not made any claim. This product is to counter home buyers who felt mortgage insurance plan as redundant since they are not refundable if no claim is made.

It has been found that death or terminal disease are not rank high as top concern for most home buyers as they felt that it is not likely to strike them at a comparatively young age. As such, only 4 out of 10 people polled in the OCBC study purchased mortgage insurance.

This new product is known as Mortgage Protector Advantage which has an early mover's advantage as there is practically no competition at the moment.

This product provides home buyers a win-win proposition, as they get to receive the premium refund if no claim is made and a peace of mind knowing that the outstanding loan will be paid off should any mishap happen to them. It has been found that mortgage insurance has flat sale for quite a few years as the loan quantum increases in tandem with property price appreciation over this period.

8 Dec 2012