New Zealand is one of the least insured nations in the developed world according to research by the Financial Services Council, with many Kiwis relying on a “she’ll be right” attitude when things do go wrong. The reality is that tragedy can affect anyone at any time and being unable to work for a period of time has a significant financial impact on you and your family. If you’ve been putting off getting insured, now’s a good time to remedy that.

Your home is your castle
For most homeowners, the mortgage repayment is the biggest outgoing each month and most often the biggest concern if they were to lose their income.

While it can be tempting to put off getting insurance believing it’s an unnecessary expense that you simply can’t afford right now, what would happen if you were unable to pay your mortgage because of illness, an accident or being made redundant? How many weeks or months could you continue to pay your mortgage and live a normal life without a full time income?

Financial experts say that along with life insurance, insuring your income and your home loan is important if you are buying a home. Mortgage and Income Protection cover can help you look after what you have now, regardless of what happens in the future. It can help cover your monthly mortgage instalments or other expenses if your earning capacity is seriously affected by illness, disability or redundancy.

Redundancy Cover benefit is an optional benefit available when you choose Mortgage and Income Protection insurance. It provides cover for monthly mortgage repayments for up to six months if you are made redundant.

You can also obtain protection for your mortgage through other forms of insurance, such as life cover, critical illness cover (Living Assurance) and income protection:

Life Cover
Provides a lump-sum payment if you die, which can allow your family to repay the mortgage in full, depending on the level of cover.

Living Assurance
Pays a lump sum if you are diagnosed with a defined critical illness, such as heart attack or cancer, giving you the option to pay off some or all of the mortgage and maintain your lifestyle.

Insurance cover, costs and stand down periods differ amongst providers and will largely depend on your health and age.

Working with one of our insurance partners, a Mortgage Express insurance adviser can help you understand the fine print and help you choose the policy most suitable for your needs.

Get in touch if you need advice about life insurance, mortgage protection insurance or income protection insurance.

References:
https://www.sovereign.co.nz/documents/life-insurance/mortgage-and-income-protection-customer-guide.pdf
https://www.partnerslife.co.nz/

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Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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