What Is Mortgage Protection Insurance?
Mortgage protection insurance is a type of insurance that’s designed to protect your ability to meet your monthly rent or mortgage payments if you can’t work for an ongoing period, due to sickness or injury.
What Are The Benefits?
The decision to get mortgage protection insurance can rest on your ability to keep rent or mortgage repayments going if your income stops for a while. A survey by the Financial Services Council (FSC) of New Zealand in 2022 found that most employed New Zealanders have less than 6-months worth of expenses saved. The same FSC research showed that 40% of New Zealanders would be unable to access $5,000 (without going into debt), if something unexpected were to happen to them.
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How would you meet your monthly rent or mortgage payments if you were unable to work?
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SOURCE: https://blog.fsc.org.nz/2022-research-financial-resilience-index
How Much Mortgage Protection Insurance Do I Need?
We can help you work out the right amount based on your current income and/or mortgage levels. Typically, insurers offer up to 45% of your gross income, or slightly higher than your actual mortgage payment.
What Can You Use Mortgage Protection Payments For?
Payments from a claim can be used in any way you like. So in addition to helping pay your rent or mortgage, payments could help with everyday living costs.
When Do Mortgage Protection Payments Start?
You can choose when payments will start after your claim has been accepted. This means deciding how long you want to wait before receiving payment. Options typically include 4, 8, 13, 26, 52 or 104 weeks. You can also select how long you want payments to continue. The choices are 2 years, 5 years or to age 65. We can help you work out what’s right for you.