In the Philippines, the Mortgage Redemption Insurance (MRI) is a key consideration when getting a housing loan. Some lenders may not require it, but most Lancaster New City reviews would say that its value is undisputed. To appreciate its utility, Real Estate Hub and other experts noted that it’s best to know the answers to its most asked questions:
How Does it Benefit You?
The MRI allows the lender to collect the remainder of the loan balance in case the borrower dies or becomes totally disabled or incapacitated. In turn, your surviving family will be spared the financial hardship. Your loved ones won’t be held liable for the unpaid balance because the insurance company will take care of it.
How Often Do You Have to Pay It?
Generally, the MRI’s annual premiums would be incorporated into your housing loan. With Pag-IBIG, you might be able to pay it in monthly installments to make them more manageable. The amount would depend on how much you would borrow, but the MRI annual premium in a Pag-IBIG loan worth 1,000,000php is estimated to be 2,760php.
Do You Still Need it When You Already Have Life Insurance?
If you already have life insurance, you can assign it to your MRI. However, this is only possible if your coverage matches or exceeds the loan amount. If you choose to go this route, you might leave your surviving family with nothing or little money in case you die. Strongly consider shelling out a few thousands of pesos yearly to ensure your loved ones would receive a large sum at the time of your passing.
Is it Necessary Even for a Vacant Lot?
As long as you used a housing loan to buy it, yes. If you suddenly pass away, your loved ones might be forced to shoulder repayment of the unpaid balance or lose the land to the lender.
Is it Different from Fire Insurance?
Don’t confuse MRI with fire insurance. The former is basically life insurance, while the latter provides protection from loss by fire and other natural disasters.
MRI may be optional at times, but choose to have it no matter what. You might think that you don’t need it, but you would surely hope you do when the unexpected happens.