What is Mortgage Protection Insurance

What is mortgage protection insurance

Mortgage protection insurance is one of the only forms of risk protection insurance that could prevent you and your family from becoming homeless. Today in NZ approximately one third of working kiwis will be struck down with a severe injury or illness before they are 65 years old, and this injury or illness will prevent them from working for at least 6 months.   The chances of becoming sick due to diseases such as cancer, stroke and heart attacks are a real possibility.  When you are struck down it will be unexpected and usually sudden.  The financial consequences that occur while you are unable to work can have a catastrophic effect on the family and their finances.

Most of us have worked hard to build our lives and lifestyle, why would you risk to have it taken away from you because you have been struck down with a serious illness or injury and you can no longer the pay the rent or mortgage, power bills, rates, food and other expenses to maintain the household.

The average kiwi family can only manage for three to four weeks without an income and any savings you may have will quickly evaporate once your income stops.  It is proven that your recovery will be much faster if you are not worrying about finances, and don’t forget there are also additional bills required for hospital care, medications or rehabilitation and if you are not worrying about how the mortgage will be paid you can relax and recover.

Mortgage protection insurance is the only form of risk insurance that can protect against this happening. Once you are diagnosed and cannot work your mortgage protection insurance will start paying your mortgage payment for a period of 2yrs, 5yrs or to age 65yrs. This will give you the time and reassurance to get over your illness or injury knowing the bills are paid and you wont be homeless when you recover. Financial stress can be considered just as big an issue as the actual illness. Financial stress can also cause far greater and wider implications to the individual and family coping and recuperating quickly and properly. You must also make sure your trauma and life insurance is adequate and up to date as well.

Make sure you have mortgage protection insurance built into your budget.  It is essential to talk with a qualified insurance adviser to give you the very best independent advice and products from a range of companies. If you go through the bank or through an online direct broker you will not get access to the  independent advice that you need when arranging your insurance.