Owning a home is one of life’s most significant achievements, but with it comes the responsibility of managing mortgage repayments. Mortgage protection insurance ensures that even when life throws you a curveball, your home remains secure. Here’s a comprehensive guide on why mortgage protection insurance is essential for homeowners.
1. What is Mortgage Protection Insurance?
Mortgage protection insurance is a policy that helps cover your mortgage payments if you are unable to work due to illness, injury, or even death. It’s a financial safety net designed to ensure your family can stay in their home, without the stress of how to manage mortgage repayments during difficult times. Essentially, it protects your biggest asset—your home.
2. Why is Mortgage Protection Insurance Important?
Unexpected illness, injury, or redundancy can lead to a loss of income, making it difficult to keep up with mortgage repayments. Without this coverage, you may face the risk of financial hardship or, in the worst-case scenario, losing your home. Mortgage protection insurance provides peace of mind, ensuring that your family can remain secure even if you can’t work.
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Security for Your Loved Ones: In the event of your death, mortgage protection insurance pays off the outstanding balance, ensuring your family is not left with the burden of a mortgage.
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Income Support During Illness or Injury: If an accident or illness stops you from working, this insurance steps in to cover mortgage repayments, allowing you to focus on recovery rather than financial strain.
3. Understanding Your Coverage Needs
When choosing mortgage protection insurance, it’s important to select the right level of cover. Here are three factors to consider:
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Mortgage Balance: Your insurance should cover the full balance of your mortgage or a significant portion of it, depending on your needs.
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Policy Length: Ensure that your cover lasts for the entire duration of your mortgage, offering protection throughout the loan term.
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Stand-Down Period: Many policies have a stand-down period, the length of time before your benefit kicks in. This can be adjusted based on your individual financial situation.
4. Types of Mortgage Protection Insurance
There are various types of mortgage protection insurance policies to choose from, each with it's specific benefits for the policyholder and beneficiary. Here’s a look at the three most common options:
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Income Protection: This type of cover provides monthly payments if you’re unable to work due to sickness or injury, ensuring that you can still meet your mortgage obligations.
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Mortgage and Income Protection: A more comprehensive option that not only covers your mortgage but also helps with additional expenses such as household bills or school fees.
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Disability Income Protection: Offers income support in case you’re unable to work due to a permanent disability. It’s ideal for those seeking long-term security.
5. Benefits of imsure Mortgage Protection Insurance
Here are some of the advantages of choosing imsure for your mortgage protection insurance:
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Tailored Options: Whether you need full mortgage coverage or just income support, imsure has policies designed to fit your needs.
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Flexible Stand-Down Periods: Choose a stand-down period that suits your financial situation, from shorter periods for quicker payouts to longer periods for lower premiums, ensuring you have adequate financial protection.
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Comprehensive Support: Our policies can include optional benefits such as specialist and diagnostic testing, redundancy cover, or accidental injury cover, adding extra layers of protection.
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Expert Advice: imsure’s advisers across New Zealand are connected with leading insurance providers and experienced insurer partners, ensuring that you get the best deal and coverage that works for you.
Why Choose imsure?
At imsure, we believe in providing personalised service that sets us apart. Our advisers take the time to understand your mortgage, loan repayment obligations, financial situation, and personal circumstances, offering insurance solutions that provide true peace of mind. We’re always here to support you through every stage of your insurance journey, from getting the best deal to assisting with claims if the unexpected happens.
Get in Touch Today
Ready to protect your home and your future with mortgage protection insurance? Contact imsure today for free advice and a tailor-made insurance plan. Our dedicated team is here to ensure that your home remains secure, no matter what life brings.
