What is Mortgage Redemption Insurance?

Typically referred to as MRI, Mortgage Redemption Insurance is a type of insurance that in case of untimely death or inability to continue paying for the mortgage, the homeowner can avoid foreclosure of the property.

 

In the worst of cases, the property will now be considered fully paid and all financial burdens are resolved.

Okay,  Another Insurance.  So, What Now?

It is mandatory so I got one what was affiliated with our property developer. 

 

But my newbee self thought it was the “Home Insurance“.

 

Well… It was not.

What is the "Home Insurance" Then?

The insurance for your home is called the “Fire Insurance“. 

 

These jargons are confusing as hell!

So What is "Fire Insurance"?

Silly me, Its not just for fire! 

 

It covers most of the natural and man-made disasters  that might happen to your home.

 

This typically includes  – Fire and Lightning, Earthquake Fire and Shock, Flood, Typhoon, Extended Coverage (Explosion, Falling Aircraft, Smoke and Vehicle Impact), Riot, Strike, Malicious Damage, Broad Water Damage with BOWTAP and Sprinkler Leakage. 

 

They should have named it Disaster Insurance For Your Home instead.

So Now I have An MRI and A Home Insurance, All Set Right?

Ah, nope. So the MRI in documentation looks like a life insurance. 

What is going on?

MRI Is A Life Insurance!

But The Beneficiary is the Bank or Property Developer.

A win-win for the homeowner and developer. 

 

Both can be assured that the property will be fully paid.

Okay, skip to 15 years later!

The property has been fully paid, the homeowner is alive and well!


What happens to the MRI?


The MRI is a Life insurance. It was not needed so can then be Life Insurance and not an MRI anymore. That’s what I have. I’ll have to talk about it with first-hand experience after 15 years. 


See you in 15 years!

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