Mortgage Insurance Packages
When purchasing a property with a mortgage in Israel, the mortgage provider requires the owner of the property to take out 2 types of insurance.
1. Structure Insurance
2. Mortgage Life Insurance
These insurances provide protection to the property owner.
Before this requirement was in place, a family whose breadwinner died, would be in severe danger of property repossession as a result of the inability to meet the mortgage repayments. Likewise, in the case of serious structural damage to the property, the home owners invariably failed to meet the mortgage repayments in addition to laying out for the structural repairs.
Buying a home in Israel can often be stressful. The time constraints involved in signing contracts between kablanim (building contractors), previous home owners, realtors and mortgage providers, means that home owners seldom purchase the appropriate insurances at the correct prices.
Some providers of the mortgage life insurance give a straight term insurance to cover the mortgage taken. They often fail to provide the more appropriate decreasing term insurance. In addition to this, many providers may offer attractive quotes by either offering large discounts for a limited time and/or base the quotes on unrealistic interest rates that can lead to people being significantly underinsured.
In the event that you are either in the process of taking out a mortgage, have erroneously taken out a straight term mortgage life insurance or are concerned about the current conditions of your policy, Goldfus Insurance will be able to assess the terms and provide you with practical solutions.
Goldfus Insurance takes no responsibility for changes in Israeli legislation that may alter the accuracy of the above information. For clarification of any changes, please contact us.
