Buying a property in Singapore is a big move, whether you’re going for public housing, or a private property such as a condo or landed home.

There is one important thing to do to make sure your dream of owning a home doesn’t turn into a nightmare. Should tragedy strike — death, terminal illness or disability — you want your loved ones to be able to keep living in the home you’ve built together, without having to worry about paying for it.

That’s what mortgage insurance is for. Without it, your family could have to make difficult decisions if they can’t afford the monthly loan installments.

What exactly is mortgage insurance?

Mortgage insurance is designed to payout a lump sum payment to you or your family, should the worst happen, to clear out the remaining outstanding loan with the bank. This can keep the bank from seizing your property.