Frequently Used by Many People, These Are the Types of Mortgage Insurance

Insurance KPR (Doc.ist)

Printable.biz.id - A Mortgage Loan or KPR is one of the most commonly used types of insurance. This insurance not only protects the house but also safeguards the homeowner against various risks.

However, each insurance company offers different coverage or benefits. Therefore, it’s essential to understand the types of mortgage insurance and their benefits, as this can have long-term implications.

On the other hand, mortgage insurance is a type of insurance designed to provide protection to customers in case of unforeseen events. This insurance is usually associated with the long-term nature of home loan payments.

The Most Common Types of Mortgage Insurance

When taking out a home loan, there are several risks that may arise, such as the borrower falling seriously ill, being unable to pay, or even passing away. To anticipate such risks, there are types of mortgage insurance that support loan repayment, such as:

1. Life Insurance

In the KPR agreement clause, life insurance is included. This insurance must be purchased before applying for a mortgage. It is a collaboration between the bank as the loan provider and the insurance company to protect the customer's financial stability.

With this insurance, the provider will settle the remaining loan if the borrower passes away before the installments are fully paid. Thanks to this insurance, the heirs do not have to bear the remaining loan as the insurance company will cover it.

2. Critical Illness Insurance

Another type of mortgage insurance is critical illness insurance. This insurance protects the borrower from financial difficulties due to critical illnesses or disabilities. The mechanism of this insurance is almost the same as life insurance.

The insurance company will pay off the remaining mortgage balance. Critical illnesses covered by this insurance typically include heart attacks, kidney failure, strokes, cancer, and other severe illnesses that require intensive medical care and significant expenses.

3. Home Insurance

Additionally, you should pay attention to the home loan agreement clauses in the insurance. This type of insurance helps reduce the impact of potential disasters, such as natural disasters or fires caused by specific factors.

With this insurance, damage to your home caused by natural disasters or other incidents will be covered by the insurance provider. As a result, you won’t need to bear the costs of repairs or rebuilding your home.

These are the types of mortgage insurance that are crucial to have, as they can provide numerous long-term benefits. This way, you can live your daily life more comfortably and with peace of mind.