Best Cheap Mortgage Insurance in Singapore 2020

Mortgage insurance is often overlooked when it comes to insurance policies, but it can be a lifesaver if something were to happen to you and your family becomes unable to pay for the remaining home loan. We analysed all the mortgage insurance plans on the market to help you make the best decision for your financial needs.

Compare Mortgage Insurance Plans

Mortgage Insurance, or Mortgage Reducing Term Assurance, can help you pay off your home loan if something were to happen to you. Learn more about the plans that are currently available on the market below and find out how you can get the best plan for your needs.

Mortgage insurance, or Mortgage Reducing Term Assurance (MRTA), protects your family from paying the outstanding mortgage on your home if you were to die or become permanently disabled. Unlike term life insurance, where the sum assured remains the same across the policy term, the sum assured on your mortgage insurance will decrease over time. This is because it aims to match your home loan—as you pay off your home loan, your home loan gets smaller and thus the amount of coverage you need will be less as well. You choose a plan based on your current outstanding mortgage loan, your policy term (how long it will take to pay off your loan) and the interest rate that is closest to your mortgage rate.

If you are the owner of an HDB flat and are using your CPF savings to pay for your housing loan, you will already be insured under the government-mandated mortgage insurance called the Home Protection Scheme (HPS). However, if you are not using your CPF to pay off your home loan (i.e. you live in a condo or landed property), then your mortgage won't be protected. In the event you die or become permanently disabled, your family will be forced to continue the payments of the mortgage or sell the home. Because of this, mortgage insurance can be beneficial if you are making mortgage payments that your family won't be able to afford without you. To aid you in your decision-making, we have compiled a list of mortgage insurance policies that may suit you based on your home loan and budget.

Full Refund Mortgage Insurance Plans

The mortgage insurance plans below are effectively the cheapest plans because they will provide a full refund of your premiums if no claims were made, making your total cost over the policy term zero. These types of plans are a great way to have protection when you need it and get back all your money when your mortgage insurance plan ends. However, it is worth noting that while these plans will refund your premiums at the end of the policy term, they do cost more per year than mortgage insurance plans that don't provide refunds. Thus, you should make sure you can afford to pay the premiums before investing in these policies.

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Plan:
Prudential PruMortgage Refund
Prudential PruMortgage Refund
Prudential PruMortgage Refund Premier
PruMortgage Refund Premier
OCBC Mortgage Protect Advantage
Mortgage Protect Advantage
Policy Term10-35 years; up to age 75 ANB10-35 years; up to age 80 ANBN/A
Premium TermPolicy Term - 3 YearsSingle PremiumPolicy Term - 3 Years
Life CoverageDeath, TIDeath, TPD, TIDeath, TI, TPD
Issuance Age20-60 (Age Next Birthday)20-70 (Age Next Birthday)18-65 (Age Next Birthday)
Premium Refund100%100%100%
Policyholder OptionsSingle/JointSingle/JointN/A

Prudential's PRUMortgage Refund provides a full premium refund at the end of your policy term if you did not make any claims and will cover you for death and terminal illness. You can also choose to get total and permanent disability coverage as an optional benefit. The death benefit consists of the higher of the sum assured or the total premiums paid. PRUMortgage Refund is a regular premium payment plan, where you will pay premiums up until you have 3 years left on your policy. You have the option of applying for this plan alone or jointly with whomever is helping you pay for the loan. The plans are fairly flexible, allowing you choose interest rates between 1-7% and choose any policy term between 10 and 35 years (or up to age 75 Age Next Birthday, whichever is earlier).

PRUMortgage Refund Premier is similar to PRUMortgage Refund in that it provides a full refund at the end of the policy term. However, there are a few differences. First, you pay with a single premium (pay just once at the beginning of your policy). You will also receive total and permanent disability coverage included in the base plan, unlike in PRUMortgage Refund. Furthermore, your policy term will cover you up to age 80, whereas PRUMortgage Refund will cover you until age 75. Lastly, there is a S$100,000 sum assured minimum, so if your loan is smaller than that amount, you will not be able to purchase this policy. It is worth noting that while the single premium payment requires more money up front when you purchase the policy, our research found that you may end up paying less over the whole term of the policy.

OCBC Mortgage Protect Advantage is another plan that will provide a full premium refund if you don't make any claims by the end of the policy. You will be covered against death, terminal illness and total and permanent disability. If you don't make any claims by the end of your policy term, you'll get a 100% premium refund. Unlike Prudential's plans, you will also get back at least 40% of the premiums you paid if you choose to surrender your policy from the 8th policy year.

If you're interested in learning more about these plans, reach out to our advisors at PolicyPal by clicking "Get a Quote".

Prudential PruMortgage Refund
PruMortgage Refund

  • Policy Term:10-35 years; up to age 75
  • Premium Term: Policy Term - 3 Years
  • Life Coverage: Death, TI
  • Premium Refund: 100%
  • Issuance Age: 20-60 (Age Next Birthday)
  • Policyholder Options: Single/Joint
Prudential PruMortgage Refund Premier
PruMortgage Refund Premier

  • Policy Term: 10-35 years
  • Premium Term: Single Premium
  • Life Coverage: Death, TI
  • Premium Refund: 100%
  • Issuance Age: 20-60 (Age Next Birthday)
  • Policyholder Options: Single/Joint
OCBC Mortgage Protect Advantage
Mortgage Protect Advantage

  • Policy Term: N/A
  • Premium Term: Policy Term - 3 Years
  • Life Coverage: Death, TI, TPD
  • Premium Refund: 100%
  • Issuance Age: 18-65 (Age Next Birthday)
  • Policyholder Options: N/A

Prudential's PRUMortgage Refund provides a full premium refund at the end of your policy term if you did not make any claims and will cover you for death and terminal illness. You can also choose to get total and permanent disability coverage as an optional benefit. The death benefit consists of the higher of the sum assured or the total premiums paid. PRUMortgage Refund is a regular premium payment plan, where you will pay premiums up until you have 3 years left on your policy. You have the option of applying for this plan alone or jointly with whomever is helping you pay for the loan. The plans are fairly flexible, allowing you choose interest rates between 1-7% and choose any policy term between 10 and 35 years (or up to age 75 Age Next Birthday, whichever is earlier).

PRUMortgage Refund Premier is similar to PRUMortgage Refund in that it provides a full refund at the end of the policy term. However, there are a few differences. First, you pay with a single premium (pay just once at the beginning of your policy). You will also receive total and permanent disability coverage included in the base plan, unlike in PRUMortgage Refund. Furthermore, your policy term will cover you up to age 80, whereas PRUMortgage Refund will cover you until age 75. Lastly, there is a S$100,000 sum assured minimum, so if your loan is smaller than that amount, you will not be able to purchase this policy. It is worth noting that while the single premium payment requires more money up front when you purchase the policy, our research found that you may end up paying less over the whole term of the policy.

OCBC Mortgage Protect Advantage is another plan that will provide a full premium refund if you don't make any claims by the end of the policy. You will be covered against death, terminal illness and total and permanent disability. If you don't make any claims by the end of your policy term, you'll get a 100% premium refund. Unlike Prudential's plans, you will also get back at least 40% of the premiums you paid if you choose to surrender your policy from the 8th policy year.

Best Coverage Mortgage Insurance Plans

Mortgage insurance benefits are pretty standard across the board, but some stand out with either a larger range of interest rates or policy terms that can benefit people in unique situations. Below, we highlight a few of these plans.

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Plan:
HSBC Mortgage Protector
Mortgage Protector
AXA Decreasing Term Assurance
Decreasing Term Assurance
Etiqa eProtect Mortgage
ePROTECT Mortgage
Aviva MyProtector Decreasing
MyProtector-Decreasing
Policy Term10-40 Years5-30 Years6-40 Years10-term (up to age 99 ANB)
Premium TermPolicy Term - 4 YearsSingle Premium; Policy Term - 3 Years90% of Policy TermRegular Pay
Life CoverageDeath, TI, TPDDeath, TI, TPDDeath, TI, TPDDeath, TI
Interest Rate1%-10%0%-15%1%-4%1%-9% (excluding 6%, 8%)
Issuance AgeN/A16-60 (age nearest birthday)N/AN/A
Policyholder OptionsSingle/JointSingle/JointN/ASingle/Joint

HSBC Mortgage Protector provides a wide variety of policy terms, premium payment options and interest rates to help you create the most suitable mortgage insurance plan. For instance, you can choose a policy term between 10 and 40 years, unlike most policies that cap the maximum policy terms to 30 or 35 years. Furthermore, you can choose to purchase this plan alone or jointly and pay your premiums yearly, half-yearly, quarterly or monthly. The life benefit provides coverage for death, terminal illness and total and permanent disability. Lastly, our research has found that HSBC offers cheaper than average premiums by about 30-37% compared to other insurers. Combining that with its current offer of a free one month free waiver, it could be an affordable option to people who can't afford to pay for a full-refund policy.

AXA Decreasing Term Assurance provides the largest number of choices for your interest rates, ranging between 0-15%. AXA also provides a variety of payment options and policy terms. For instance, you can choose to pay annually or you can pay for your entire plan all in one go with a single premium. You will be covered for death, total and permanent disability and terminal illness. You can also add a variety of riders, including personal accident, critical illness and waiver of premium options. One thing to note is that AXA has a minimum and maximum sum assured depending on your policy. For single life plans (meaning only 1 person is taking out the policy) has a minimum sum assured of S$50,000. Joint life plans have a minimum sum assured of S$100,000.

ePROTECT Mortgage is another MRTA that has unique benefits compared to other mortgage insurance plans. For instance, not only does it provide the standard death, terminal illness and total and permanent disability coverage, but it also offers an additional funeral benefit. Furthermore, it offers a wide range of policy terms between 6 and 40 years, so a variety of mortgage loan scenarios may fit under this plan (for instance, you buy a second property down the line and need a longer policy term to cover the new loan). Etiqa's interest rate options are between 1-4% and you'll only need to pay premiums for 90% of your policy term.

Aviva MyProtector-Decreasing is an MRTA that provides flexible coverage and a range of features. For instance, you can choose a policy term of 10 years to term up to age 99 at every one year interval. This policy term is unique as most other plans only allow policy terms up to ages 65-75. You can also choose from a variety of interest rates between 1%-9% (with the exclusion of 6% and 8%). The life coverage includes a death and terminal illness benefit, but if this isn't enough, you can choose to top up your coverage with a Total & Permanent disability rider, a critical illness rider and a premium waiver rider.

If you're interested in learning more about these plans, reach out to our advisors at PolicyPal by clicking "Get a Quote".

HSBC Mortgage Protector
Mortgage Protector

  • Policy Term: 10-40 Years
  • Premium Term: Policy Term - 4 Years
  • Life Coverage: Death, TI, TPD
  • Interest Rate: 1%-10%
  • Issuance Age: N/A
  • Policyholder Options: Single/Joint
AXA Decreasing Term Assurance
Decreasing Term Assurance

  • Policy Term: 5-30 Years
  • Premium Term: Single Premium; Policy Term - 3 Years
  • Life Coverage: Death, TI, TPD
  • Interest Rate: 0%-15%
  • Issuance Age: 16-60 (age nearest birthday)
  • Policyholder Options: Single/Joint
Etiqa eProtect Mortgage
ePROTECT Mortgage

  • Policy Term: 6-40 Years
  • Premium Term: 90% of Policy Term
  • Life Coverage: Death, TI, TPD
  • Interest Rate: 1%-4%
  • Policyholder Options: N/A
Aviva MyProtector Decreasing
MyProtector-Decreasing

  • Policy Term: 10 to term (up to age 99)
  • Premium Term: Regular Term
  • Life Coverage: Death, TI
  • Interest Rate: 1%-9% (excluding 6%, 8%)
  • Policyholder Options: Single/Joint

HSBC Mortgage Protector provides a wide variety of policy terms, premium payment options and interest rates to help you create the most suitable mortgage insurance plan. For instance, you can choose a policy term between 10 and 40 years, unlike most policies that cap the maximum policy terms to 30 or 35 years. Furthermore, you can choose to purchase this plan alone or jointly and pay your premiums yearly, half-yearly, quarterly or monthly. The life benefit provides coverage for death, terminal illness and total and permanent disability. Lastly, our research has found that HSBC offers cheaper than average premiums by about 30-37% compared to other insurers. Combining that with its current offer of a free one month free waiver, it could be an affordable option to people who can't afford to pay for a full-refund policy.

AXA Decreasing Term Assurance provides the largest number of choices for your interest rates, ranging between 0-15%. AXA also provides a variety of payment options and policy terms. For instance, you can choose to pay annually or you can pay for your entire plan all in one go with a single premium. You will be covered for death, total and permanent disability and terminal illness. You can also add a variety of riders, including personal accident, critical illness and waiver of premium options. One thing to note is that AXA has a minimum and maximum sum assured depending on your policy. For single life plans (meaning only 1 person is taking out the policy) has a minimum sum assured of S$50,000. Joint life plans have a minimum sum assured of S$100,000.

ePROTECT Mortgage is another MRTA that has unique benefits compared to other mortgage insurance plans. For instance, not only does it provide the standard death, terminal illness and total and permanent disability coverage, but it also offers an additional funeral benefit. Furthermore, it offers a wide range of policy terms between 6 and 40 years, so a variety of mortgage loan scenarios may fit under this plan (for instance, you buy a second property down the line and need a longer policy term to cover the new loan). Etiqa's interest rate options are between 1-4% and you'll only need to pay premiums for 90% of your policy term.

Aviva MyProtector-Decreasing is an MRTA that provides flexible coverage and a range of features. For instance, you can choose a policy term of 10 years to term up to age 99 at every one year interval. This policy term is unique as most other plans only allow policy terms up to ages 65-75. You can also choose from a variety of interest rates between 1%-9% (with the exclusion of 6% and 8%). The life coverage includes a death and terminal illness benefit, but if this isn't enough, you can choose to top up your coverage with a Total & Permanent disability rider, a critical illness rider and a premium waiver rider.

If you're interested in learning more about these plans, reach out to our advisors at PolicyPal by clicking "Get a Quote".

How to Choose the Best Mortgage Insurance

The right mortgage insurance plan will depend on a number of factors, including price, your home loan and your other financial obligations. First and foremost, you need to find mortgage insurance plans that provide the right coverage for your home loan. This means that the plan offers a policy term that matches your home loan repayment period, an interest rate that is closest to your current mortgage loan interest rate and a sum assured that covers the full amount of your home loan. Second, you should also be able to afford the premiums. To make sure you are not getting a plan that is too expensive, you should compare premiums across different insurers. You should also see what payment options are available. Some plans let you pay monthly, quarterly, semi-annually or annually, any of which may be better suited to your needs.

However, to ensure you are getting the best mortgage insurance plan, we strongly recommend speaking to your financial advisor. Mortgage insurance plans are a long-term commitment and surrendering your policy early will result in a lapse of coverage and unrecoverable premiums.

Methodology

The plans featured here were chosen because of their benefits and estimated cost, but they may not necessarily be the best choice for your needs. After analysing all of the mortgage insurance plans on the market, we looked at each plan's features, like policy terms, premium payment terms, interest rates and miscellaneous benefits like add-ons and if the plan refunds your premiums at the end of the policy term. This helped us identify which plans stand out among the rest in terms of benefits.

We also estimated premiums using a sample profile and Comparefirst.sg. The sample profile was a 35-year old non-smoking male. He was looking to take out a S$500,000 policy with a 25-year policy term at a 3% interest rate. Using Comparefirst.sg we were able to get premium estimates. However, because we are aware that Comparefirst can be delayed and insurers change their pricing, we used the information given as a rough guide of where each insurer stands in terms of pricing, rather than recommending products based on affordability. Since each consumer is different, your premiums may vary greatly depending on your circumstances.

Insurers Sampled
AIAAvivaAXA
Great EasternPrudentialManulife
Tokio MarineOCBCHSBC
IncomePrudential

The information shown here is for educational purposes only and is not intended to be used as a recommendation or endorsement of any product. For more information, please contact our financial advisors at PolicyPal.

Anastassia Evlanova

Anastassia is a Senior Research Analyst at ValueChampion Singapore, focusing on insurance. She holds degrees in Economics and International Business Management and her prior working experience includes work in the capital markets sector. Her analyses surrounding insurance, healthcare, international affairs and personal finance has been featured on AsiaOne, Business Insider, DW, Vice, Her World, Asia Insurance Review, the Australian Institute of International Affairs and more.

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