Insurance On Home Loans

[debrup]

Hi,

My brother had brought an apartment in Bangkok and took 70% of the apartment cost as Home Loan from the Standard Chartered Bank. Since he was an ex-pat he was made the secondary owner of the property and his wife (a Thai national) was made the primary owner, even though she does not have any earnings.

Is there any insurance on the home loans that are given out by the banks in Thailand? If the person to whom the loan has been disbursed expires, then does the insurance on the loan come into the picture and the home loan get waived?

[mark5335]

Hi,

My brother had brought an apartment in Bangkok and took 70% of the apartment cost as Home Loan from the Standard Chartered Bank. Since he was an ex-pat he was made the secondary owner of the property and his wife (a Thai national) was made the primary owner, even though she does not have any earnings.

Is there any insurance on the home loans that are given out by the banks in Thailand? If the person to whom the loan has been disbursed expires, then does the insurance on the loan come into the picture and the home loan get waived?

My wife and I got a home loan from StanChart earlier this year. The insurance was not "given out", however, we took 2 types of insurance policies as part of this home loan approval:-

1) mortgage life insurance on my wife (the primary borrower) through Prudential whereby Pru will pay off the home loan if my wife passes away. (premium cost about 50,000 baht for 5MB coverage over 5 years.)

2) Fire insurance on our condo unit through MSIG. (premium cost about 7,000 baht)

The cost of the mortgage life insurance was not as high as that charged by some other local banks & their insurance partners. For example, BBL's Home1st mortgage insurance on another loan was quoted at 120,000 baht on 5MB for 10 years. BBL were not willing to negotiate and reduce the term of the life insurance like StanChart were. An additional benefit of the mortgage life insurance is a reduction in the loan interest rate of about 30 basis points...which partially helps to compensate for the high premium paid.