I EXTEND my sympathies to Mdm Kok Pooi Leng, wife of Mr Lim Hock Soon who was killed execution-style, who not only lost her husband but also her house.
Her plight highlights the importance of having mortgage insurance for one's private property.
I understand that HDB flat owners are required to be covered by the Housing Protection Scheme (HPS). But it is not mandatory for private- property owners to be similarly insured. Could the authorities enlighten us on the rationale for the different treatment?
As evidenced by Mr Lim, not all private-property owners are financially savvy enough to purchase their own private mortgage insurance.
Is it time for the authorities to look into making mortgage insurance mandatory for private-property owners as well?
Or, at the very least, make it a requirement for the financial institution granting the loan to emphasise the need for mortgage insurance.
My husband and I own a private property and he services the bank loan with his CPF. We have purchased mortgage insurance for him, which will pay us the rough equivalent of our outstanding bank loan in the event of death, disability or major illness.
The premium is a small price to pay for the peace of mind it gives us in case the unthinkable happens. More-
over, it is a fraction of what we pay the bank in interest every month.
Another advantage of private mortgage insurance is that it functions as a life policy and is not tied to the particular house for which it was originally purchased.
This means homeowners can move house without having to take out another mortgage policy, unless a bigger loan is required.
This is unlike what I understand about the HPS, where the mortgage insurance terminates once the owner sells the flat and he would have to take out a new policy upon the purchase of another flat.
This has several disadvantages, chief of which is that he might be uninsurable (due to poor health) at the time of his next purchase.
I urge all private-property owners who do not have mortgage insurance to seriously think about getting insured. Losing the breadwinner in the family is bad enough, but losing the roof over one's head is a tragedy that could have been averted.
Maria Loh Mun Foong (Ms)
