Mortgage insurance has now become a mandate by all the banks in the UAE to protect them against any financial losses arising due to Death or critical illness of a person.
Mortgage insurance can be taken both term life as well as whole of life insurance, where the person borrowing the loan can take a policy from any insurance company and assign the bank as a beneficiary in case of death or disability of the person.
It is always recommended to take Critical illness as a rider benefit along with life cover because if the policy holder gets a heart attack will not be able perform his regular routine job as aggressively as earlier so there will be more expenses incurred towards treatment and treatment is very expensive all over the world.
Mortgage prevents your dependents from becoming a victim of banks repayment of loans.
Any term life insurance plan can be conditional assigned to any bank as mortgage insurance there is nothing complicated about it.
Mortgage insurance may or may not have returns of premium.
Mortgage insurance can be continued even after the loan is fully settled as compared to the insurance obtained as a bundle from the bank. You can always cancel the bank provided insurance and take a policy from a company of your choice and do a conditional assignment of the same.
Mortgage insurance can be cancelled at any given point in time if it is term life plan.