Happy FamilyMortgage Insurance and Income Protection Pays When You Can’t

Whether you purchased a home or are renting, paying the monthly mortgage or rent payments when you lose your job or are out of work because of an illness or injury can be challenging, if not downright impossible. But there’s no need to put this added stress on you during an already tough time when there is insurance to protect you in these circumstances.

The Benefits of Mortgage and Income Protection Insurance

The affordability of mortgage and income protection insurance means there’s no need to turn to family members for a loan or to wipe out your savings and retirement accounts to pay the mortgage, rent and other bills, like house and contents insurance, taxes, or land rates.

Payments from your mortgage insurance and income protection policy kick in when your income significantly diminishes because of an illness or injury that keeps you from working, or if you lose your job due to a layoff at work*

With mortgage insurance and income protection, your home or rental is never at risk. Plus, mortgage and income protection works in conjunction with ACC, so if you qualify for the government’s personal injury cover, your ACC claim will not be denied because you have other insurance.

TIP: Mortgage Insurance is the only insurance that’s not offset by ACC where as Income Protection is.

What does this mean?

If you make a claim via ACC you ‘can’ claim on your Income Protection Policy but not always. You must realise that ACC pays 80% of your gross income (up to $113,000 pa) and most private insurance policies pay between 55% and 75% of your gross income, therefore the insurance companies will off set your ACC payments paying you zero as the 80% is higher than what you can claim under private cover – you can’t claim both!

However, if you have Mortgage Repayments insurance it is not offset as this is deemed as insurance against an asset or debt therefore it’s not assessable.
What this video here which explains this in more detail.

TIP: If you have Cover Plus Extra (Self Employed) and have dialled down your ACC Cover you will be able to claim on Income Protection as the amount will be lower than your private cover therefore claimable – watch this video here as this explains how it works.

Customised Insurance to Meet Your Budget

Insurance companies offering mortgage and income protection insurance have designed numerous coverage options to meet the needs and budgets of New Zealand’s homeowners and renters. Various benefit payment period options and waiting periods allow you to customize a policy that is perfect for your lifestyle.

TIP:As a rule of thumb you can either insure 40% of your income or 110% of your Mortgage Repayments under Mortgage Repaymets insurance. And YES you can get this cover without having a Mortgage!

A coverage and rate comparison can help you easily select a mortgage and income protection insurance policy that’s right for you. With it, you can do a side-by-side comparison of policies from several insurance companies to help you make an informed choice.

With mortgage and income protection insurance, you can protect your home and the financial security of you and your family for whenever life throws you a curveball.

*If you loose you job you must have Redundancy Cover. Mortgage and Income protection does not cover you if you’re made redundent. Redundancy Insurance is an ADD ON.

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