What about Life cover?
Life cover provides a payment upon death or where a terminal illness is diagnosed with less than 12 months to live. This cover maybe useful because it means your loved ones could choose to put some or all of the payment towards repaying the mortgage. The amount of cover you take out determines how much will be paid. To cover other needs or goals, you could take out more cover than the amount remaining on the mortgage. It’s up to you. Life cover may make sense if you share a mortgage with someone or have children or other family members who depend on you to keep a roof over their head. We can help you work out what is best for your situation.
What about mortgage protection cover?
Mortgage protection provides a different type of cover. If you can’t work for an ongoing period due to sickness or injury, it can be used to cover your monthly mortgage repayments.
You will have to meet the disability definition under the policy for a period of time before payments will begin. The period before payments begin is called a ‘wait period’ and is chosen by you when you apply for the policy. A longer wait period may reduce the cost of your premium but may not be appropriate if you don’t have enough savings to last until your monthly payments begin. We can help work out what’s right for you.
What about cover for rent payments as a tenant?
Mortgage protection cover can also be used to help cover rent payments.
Do some homeowners get both life and mortgage protection cover?
Everyone is different and it comes down to what you want to insure yourself for. Talk it through with us to see what is right for you.