What is Mortgage Protection?
Mortgage Protection can include Income Protection, Trauma, Total & Permanent Disablement or Life Insurance. Alternatively you can apply for Mortgage Payment Protection which specifically covers your regular mortgage repayments if you’re unable to work due to sickness or injury.
Why do I need Mortgage Payment Protection?
Mortgage Payment Protection is very similar to Income Protection in that it pays you a monthly amount if you are unable to work due to sickness or injury. This lets you concentrate on getting better and getting back to work, rather than stressing about
how you will meet your mortgage repayments.
Doesn’t ACC cover me for that?
Many people mistakenly assume that ACC will take care of them if they can’t go to work. ACC only provides cover for injuries that are the results of an accident. Unlike ACC, Mortgage Payment Protection covers non-accidental reasons for being off work, such as stress (the biggest cause of people needing time off).
One advantage of Mortgage Payment Protection is that if you have an accident and do receive a payment from ACC, your Mortgage Payment Protection benefit will not offset… You will receive both payments.
Do I have the right cover?
With some insurance companies Mortgage Payment Protection can be a very stripped down benefit and this is usally reflected in the price. Other policies include a range of built in benefits which can be particulary helpful if you are on claim.
It’s important that you understand exactly what you are covered for… that’s where we can help.
When I claim, how long do I need to wait before I get my money?
You choose – most people go with either one, two or three months… the longer you can wait, the more affordable your premiums. That’s why it’s important for you to think about how quickly you would need the money if you got sick and couldn’t work.
Your stand down period has a big effect on how much you pay in premiums – the shorter the stand down, the higher the premium. Consider how much income you need as a minimum and think about whether or not there is more than one income coming into your household.
It really depends on your situation… that’s why you need our advice.
How long does it pay? Well that depends…
There are numerous options you can choose. We recommend as long as you can… right through to retirement age. That way when a claim happens you keep receiving your money until your doctor says you can go back to work, or if you can’t go back to work you receive your money right through to age 65 or 70.
By choosing the longest payment term, you have the most choice at claim time. If you were to claim in your 30’s and could never work again, a five year payment term would not be sufficient to provide for your family long-term.