Jul 17, 2018 8:00:00 AM

Protecting your home with Mortgage Insurance

Topics: Mortgages, Home Loan, Mortgage, nz mortgage, NZ Mortgage Adviser, Home Loan Protection Plan 1

Have you ever considered what would happen if you were unable to work? How long could you continue to pay your mortgage for before your savings run out? Mortgage and Income Protection Insurance could be the solution you need. It’s an insurance designed to meet your mortgage repayments when you can’t. Read on to find out more.

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Why do I need mortgage insurance?

Buying a home is a huge commitment and one that lasts for at least 20 years. So, what happens when things go wrong? You’re no longer able to work and service your mortgage because of a job loss, illness or worse?

Perhaps you have a savings fund to cover the repayments for a month or two. Or you choose to negotiate a savings holiday with your lender. You may even be entitled to help from ACC in the case of an accident.

But long-term, you’re probably going to need a more effective solution. That’s where Mortgage and Income Protection Insurance comes in. Mortgage and Income Protection Insurance protects you by covering your monthly mortgage instalments or other expenses if your earning capacity is seriously affected by illness, disability or redundancy.

How do I choose the right insurance?

Take a look at these four tips to help you find a mortgage insurance that’s right for you:

1. Shop around and compare

Talk to your Mortgage and Insurance adviser about the insurance options available to you and do a comparison of benefits and limitations.

2. Include a redundancy benefit

Most insurance companies offer a redundancy benefit as an optional extra so be sure to check this is included in your policy.

3. Check how long you’re covered for

Some policies only cover you for six months while others may cover you for a year or more.

4. Check the wait period

Most insurance policies will only pay out after a certain length of time so be sure to check what the wait period is on your policy.

Remember, Mortgage and Income Protection insurance is not the same as lenders mortgage insurance (which protects the lender rather than you). 

Protecting my home and income

Mortgage Express works closely with Sovereign to provide Mortgage and Income Protection Insurance. If you’d like to find out more about how this type of insurance can protect you and your home, get in touch with a Mortgage Express adviser. The earlier you get your insurance in place, the better because if health issues subsequently arise, it could end up costing you more in premiums.


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.

A Disclosure Statement is available on request and free of charge.