What is a Mortgage Loan? What kind of Guarantee, Fee, and Solution?
“Group Credit Insurance” guarantees the balance of a mortgage in case of emergency. Mortgages also have Insurance and have parts similar to life Insurance. This time, we will explain the types of group credit Insurance, the coverage, fees, and measures to be taken if you cannot enter.
What kind of Insurance is group credit Insurance (group credit)?
Group credit Insurance (group credit) is a system that covers the debt of a mortgage by Insurance in the unlikely event that the debtor is in a situation during repayment of the mortgage. By subscribing, there are many guarantees that the mortgage balance will be 0 yen in the unlikely event.
Group credit life Insurance coverage
Group credit Insurance (group credit) covers the following five items.
- What is the guarantee of Alex?
- Death / Severe Disability Guarantee
- All illness coverage
- Three major illness guarantees
- Group credit life Insurance with seven or eight major illness special contracts
- Cancer coverage
There is a part similar to life Insurance, and the Insurance money is paid in the event of “in the unlikely event” for the debtor such as death, severe disability, three major illnesses and eight major illnesses.
1. Death / Severe Disability Guarantee
When the debtor of the mortgage dies or becomes severely disabled and it becomes difficult to repay the mortgage, the group credit Insurance (group credit) provides Insurance money. In general, many companies have a balance of 0 yen.
2. All illness coverage
It is a guarantee that covers all illnesses and injuries including cancer. (Excluding mental disorders)
If you continue to be incapacitated due to illness, your mortgage balance will be 0 yen.
3. Three major illness guarantees
The three major illness coverage’s are “cancer,” “acute heart disease,” and “stroke.” The mortgage debtor suffers from the above three types of illnesses, and the mortgage repayment becomes difficult.
If you continue to be incapacitated due to the above illness, your mortgage balance will be 0 yen.
4. Group credit life Insurance with seven or eight major illness special contracts
It refers to the three major illnesses that include “diabetes,” “hypertension,” “liver,” and “kidney.” “Chronic pancreatitis” is added to the group credit life Insurance with eight major illness special contracts.
5. Cancer coverage
If you are in need of long-term care due to the onset of cancer, your mortgage balance will be 0 yen.
The coverage of group credit Insurance (group credit) differs depending on each mortgage company.
Including paid Insurance, there are many mortgage companies that offer a full range of Insurance.
Let’s take a closer look at the four group credit Insurance s (group credit).
Organization Group Credit Life Insurance
JHF’s group credit life Insurance (JHF) is a group credit Insurance provided by the Japan Housing Finance Agency to those who have taken out a mortgage loan that is a member of “Flat 35”. The warranty period is until the last day of the birthday month when you are 80 years old. JHF Group Credit Life Insurance (Institutional Group Credit) is a group credit Insurance (Danshin) that can be used with peace of mind because it is affiliated with more than 300 financial institutions nationwide. It is necessary to pay the premium for the JHF credit life Insurance (JHF) separately from the mortgage.
Credit Guarantee Association Group Credit Life Insurance
Credit Guarantee Association Group Credit Life Insurance (Guarantee Association Group Credit) is a group credit Insurance (Group Credit) operated by the National Credit Guarantee Association Federation. Credit Guarantee Association Group Credit Life Insurance (Guarantee Association Group Credit) is voluntary and the premium is abandoned.
Group credit life Insurance of general financial institutions
Group credit life Insurance of general financial institutions is group credit Insurance (group credit) provided by financial institutions, and it is essential to join. This is also compulsory because it is taken out with the mortgage that you borrow.
How much is the monthly premium for group credit life Insurance?
Now that you know the characteristics of group credit Insurance (group credit), let’s see how much the Insurance premium is. Group credit Insurance (group credit) premiums are closely related to the mortgage loan balance, so if the balance is large, the premium to be paid is also large.
For example, suppose that you have a mortgage loan of 10 million yen with JHF Credit Life Insurance (Institutional Trust) and have a repayment period of 35 years. Then, the total amount paid to group credit life Insurance will be 745,400 yen, 35,800 yen in the first year, and 33,500 yen in the fifth year. Based on the JHF group credit life Insurance (JHF), the three major illness Insurance and the group credit life Insurance with the 7th and 8th major illness special contracts will pay about 1.5 times the premium.