14/06/2023
What Is Mortgage Redemption Insurance or MRI? ๐ค
๐Do Banks Require That I Get One?
A: When applying for a housing loan from a bank, you would be asked to get a mortgage redemption insurance or MRI. An MRI is a form of life insurance that pays off a part or the whole of the insuredโs outstanding mortgage balance in case of his or her death or total disability.
If you have an existing life insurance policy, you can assign your policy as your MRI. If you have none, the bank will require you to get an MRI, which usually will be incorporated to your housing loan in lump-sum payment (one-time premium paid annually).
Other people hesitate getting an MRI as it gives them an extra expense, which by the way is considerable. However, with that single investment, you might be saving your family from wallowing in debt or losing the home you have sought to provide them with.
Letโs talk about MRI.
