Insurance has become one of the finest investments you can make when it comes to protecting your money. There's no denying that there is value in any sort of insurance or protection against unforeseen events.
As a matter of fact, having insurance policies like life insurance and car insurance may protect you from having to pay a large sum of money down the road if anything unfortunate happens-- including having a mortgage redemption insurance (MRI).
Mortgage Redemption Insurance Coverage
Another kind of life insurance is MRI, which stands for Mortgage Redemption Insurance. This is a home loan insurance policy that is designed to pay off the remainder of the loan if the house loan holder becomes totally disabled or dies unexpectedly while still owing on the loan.
When you look at it at a first glance, this MRI seems to be an extra cost or responsibility that drains your carefully budgeted resources and is deemed unneeded. However, this requirement is not just helpful to the banks, but also to you and/or your loved ones.
What Mortgage Redemption Insurance Is Available For My Lumina Home Loan?
If you desire to get a housing loan in the Philippines, you can generally have an MRI done as part of the application process, saving you the trouble of going somewhere else and starting a new application procedure. The MRI premium is often paid once, in a single amount, by applicants.
Planning to buy a house and lot or start your home investment with Lumina Homes? Here are the home options in which you can acquire mortgage insurance in the Philippines:
1. Pag IBIG Housing Loans
As long as you've kept up with your Pag-IBIG housing loan amortization payments, Pag-IBIG's mortgage redemption insurance will cover the debt in the event that the principal borrower dies. If specific qualifications and circumstances are satisfied, Pag-IBIG members who are permanently disabled or those members who are diagnosed with a terminal illness may be eligible to get coverage for an MRI.
On the other hand, in the scenario in which the MRI funds are not enough to cover all of the existing debt, the remaining loan holders, beneficiaries, or heirs will have to pay the remaining balance in full, apply for an amended amortization scheme, re-document their application, or use the Dacion en Pago program.
2. Bank Home Loans
A mortgage redemption insurance, often known as an MRI, is required when you apply for a home loan from a bank. In the event of the insured's death or complete incapacity, the MRI acts like a life insurance policy, paying out the mortgage to a partial or full extent.
Many people may be reluctant to spend their hard-earned money on an MRI because they believe they already have too many debts to worry about.
However, an MRI in reality protects not only the bank, which the insurance assures will be paid back the money it has given, but also the borrower's surviving family since it will assist cover the outstanding home loan amounts. Without an MRI, the bank or lender may detain the family home.
You may choose a life insurance policy being offered by banks. There is no guarantee that the bank would accept your application without an MRI, so they will demand you to acquire one, which is often paid for as part of your home loan-- a one-time premium paid annually.
When you purchase a house and lot package from Lumina Homes, you don't have to worry about applying for your Pag-IBIG Housing Loan or Bank Financing application. All you have to do is to submit all the needed requirements in Lumina's Admin of your chosen site. From there, an accounts officer from Lumina Homes will assist you and help you out in processing your chosen financial payment scheme transactions-- including your mortgage redemption insurance.
3. Life Insurance Provider
A life insurance policy from your preferred life insurance provider may serve as a stand-in for an MRI in the event of your death. It's also possible to use a current life insurance policy as your MRI if you already have one, presuming that the proceeds are equal to or more than the amount that you loaned.
Notable tips in getting an MRI for your home loan
It's much like any other insurance policy, in that it all relies on what's best for your financial situation. Be careful to review the MRI-specific terms and conditions, since they may differ from the general terms. Only a limited sum and a limited period of time are protected by the insurance you get for your chosen duration.
The more you pay, the more protection you get. This means that it is unrealistic to believe that the lowest alternative would eliminate your mortgage debt should you pass away or become totally disabled at a young age. It's still going to be determined by the level of protection you want to have.
To protect your loved ones in the event of your unexpected passing, it is particularly important for those who are the only earner to get the highest level of coverage possible, despite the higher price.
Meanwhile, in the case of families with several breadwinners, an insurance with less coverage can be an option to explore.
Importance of MRI to your housing loans and real estate investors
In order for banks and the Pag-IBIG Fund to approve your housing loan, MRI is now a must-have. Essentially, the outstanding loan will be paid in full with the profits of your insurance, with any residual funds being distributed to your heirs as a bequest. It will save your surviving family members from having to cope with the financial burden of your death.
For most of us, owning a house implies that we've invested in something that will appreciate in value over time. As a result of this, mortgage redemption insurance (MRI) is very crucial that is why it is also essential to always do your due research to prevent fraud and regrets in the future, just as with anything else.
For a trouble-free and lesser hassle home investment and housing loan journey, it will also be better to find or pick a trustworthy developer, lender, or insurer, as well as any other variables or factors you think are required to live the life you choose.
To help you out in deciding the best community for your family, you can visit Home Options to know the different leading and trusted community providers in the Philippines nowadays.
Lumina Homes is one of the most trusted and leading housing developers in the Philippines these days. Investing your hard-earned money and buying your lifelong dream home in Lumina gives you the assurance that you are putting your money's worth in good hands-- free from fraus and regrets.
To know more about our current house offers and the various communities that we have nationwide, you can visit our website or go to the nearest Lumina community in your area and schedule for a site tripping.
Make your home reservations now and ensure your future with Lumina Homes!