When should I get mortgage protection insurance?

When you take on a mortgage you take on a large responsibility – sometimes millions of dollars’ worth – and while the benefits of owning your own house are many, the stress of being rendered unable to pay your repayments on time can take away from enjoying those benefits.

If you become sick or injured severely enough that you have to stop working – is there enough buffer in your finances to cover mortgage repayments for months or years? And even if there is, is that how you want to spend your life savings?

That is where mortgage repayment insurance comes in.

But when should I get mortgage protection insurance?

Choosing to take out mortgage protection when you first apply for your mortgage means that you have the most cover possible. While this insurance is not legally required, many banks will try to sell you on their in-house mortgage protection insurance when you apply. However, when you make any major financial decision – you should always look around for the best and most applicable option for you.

Finding the right mortgage protection insurance is vital

There are many different types of mortgage protection policies, some are very basic and others have more features giving you a wider range of reasons to be able to claim, for example, on some policies if you have a major medical condition, such as heart attack, you will get paid for 6 months all at once, and after 6 months if you are not able to work they will continue to pay you the monthly amount.  A good policy will also pay you an immediate payment if you break certain bones, making it easier on your finances because you get the money sooner.  A basic policy might be cheaper, but you will have fewer items to be able to claim for, our experienced and qualified insurance financial advisers will guide you to get the best policy.

What’s the difference between mortgage protection insurance and income protection?

Mortgage protection insurance just covers your mortgage payments, whereas income protection insurance can be used to cover up to 75% of your pre-tax income. You can choose to have one or the other, depending on what combination of plans covers your personal situation the best. You can read more about income protection insurance here.

Why choose Ease Insurance to help me decide which insurance plan I should get?

When you get a quote through our brokerage, we provide information from a range of insurers that can help you to choose the one best suited to you.

So, get in touch today and get an easy and hassle-free quote to see how much mortgage protection insurance could cover you.