When availing a mortgage it also mandatory to protect the mortgage by life insurance, which pays out the outstanding mortgage on death of the investor.
Most banks offer life insurance along with the mortgage; for a premium calculated as a fixed percentage on the mortgage amount, protecting life and sometimes disability as well.
Although not mandatory it is highly recommended to include critical illness cover; when availing life insurance for your mortgage, because a diagnosis of critical illness will more often result in loss of income and cash flow crisis, making it difficult to pay the mortgage.
A critical illness rider will payout the mortgage; on diagnosis of one of the 35 critical illness covers by policies issued by leading insurance providers in UAE.
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