Get a Mortgage Protection insurance when buying / building your house
Becoming a homeowner is one of the key achievements in any person’s life. It is easy to see why. Owning the deed to your house gives you and your family an added layer of security, compared to just having a roof over your head.
Which is why when you are finally in a position to own your first home, it should not be left to chance whether all payments will be settled in your lifetime.
Why is that?
Most people turn to their banks for a loan to finance their projects, be it a house or some other fixed assets. The terms or repayment set by banks vary, but in all cases will require a monthly repayment by installments.
To further secure these loans, banks will often use the property under loan as a collateral, in case the borrower defaults on their repayment. In such cases, the property will be reclaimed by the bank, foreclosed on and sold to interested buyers.
What happens if your loans defaulted because you pass away or become permanently disabled?
If you pass away before settling the loan in full, your beneficiary will inherit the deeds to your house, along with your debts. If they are unable to settle the loan repayment, the bank will reclaim the property. The same applies if you are permanently disabled and default on the loan.
How can you avoid foreclosure in the event of your death or permanent disability?
The Mortgage Protection insurance is a one-off insurance payment to insure the value of the loan. The insurance company guarantees to repay the bank the remaining amount of the loan owed in full at the time, and in the event, of your untimely demise or permanent disability. This ensures that your beneficiary only inherits the property, without the debt burden.
How do you take out a Mortgage Protection Insurance?
When the loan amount has been agreed between you and your bank, contact Sacos at life@sacos.sc to get started on a Mortgage Protection Insurance. The one-time premium paid is based on the value of the loan, and other factors related to the policyholder.
Added benefits?
There is no better time to take out such an insurance. If you purchase a Sacos Mortgage Protection Insurance worth SCR 500,000 and above between 1 July 2024 and 31 August 2025, you will stand a chance to win a Free Endowment Insurance Plan worth SCR 250,000. Eligible policyholders will be automatically entered into a draw at the end of the validity period, where the lucky policyholder will be drawn as the winner.
For more information on the Mortgage Protection Insurance, visit our website or send an email to life@sacos.sc. Request a quote today on our website or by email.
