Did you know: home security isn't just about protecting bricks and mortar
Around this time of year, people start finding themselves poring over real estate brochures more than usual, imagining their lives in a new home. When the traditional home-selling season kicks off around February and March, smart people will already have shopped around for the best deal on finance.
But with interest rates and life in general being so uncertain, how do you ensure you can afford that forever home – forever? Before the home-selling season kicks off, it’s worth looking at what mortgage protection insurance can offer. By factoring this small cost into your new home purchase, you can enjoy your new life without any worry about making mortgage repayments in the event you can’t earn an income if you are covered by your policy.
Income or mortgage protection?
There’s a lot of choice when it comes to insurance products, and that can be confusing. First, there’s life insurance, which is paid out to your loved ones in the event of your death or terminal illness. You may also have heard of income protection insurance, which provides you with an income in the event of things like serious injury or illness, so you can continue to enjoy a good standard of living. (Remember, ACC will not cover you for illness, which is the reason for 80 per cent of all long-term absence from work in New !)*
Mortgage protection insurance is just what it sounds like – it will cover your mortgage repayments up to the benefit amount if you are unable to work as a result of a disability. It means that you’ll only need to have enough income to take care of your day-to-day living costs while you’re off work – and you can opt to receive a little extra on top of your mortgage repayments to help with these as well. In some circumstances you may also get help with rehabilitation, equipment or modifications to your house if required or to have an immediate family member give full-time care.
A house is the biggest purchase most people will ever make, so it makes sense to ensure it’s protected. Whether your new home is a two-bedroom starter or a waterfront mansion, don’t leave the door open to chance.
*Source - https://www.businessnz.org.nz/__data/assets/pdf_file/0013/108400/Wellness-in-the-Workplace-Survey-Report-2015.pdf