Mortgage Protection Insurance
Mortgage protection insurance cover is great for giving borrowers peace of mind just in case their financial situation changes in the future. It is designed to give your family peace of mind as it helps you meet the mortgage payments on your home in the event of someone dying, becoming disabled or becoming unable to work.
Mortgage protection can cover loan repayments on both residential (owner occupier and investment) and commercial properties owned by individuals. Mortgage Protection insurance can be secured in the name of an individual or a company
It is usually coupled with Life Insurance, Total and Permanent Disability or Income Protection Insurance and minimises financial hardship. Different insurers will have different ways of packaging it and have different payout options and benefits on offer, but at the end of the day, if you get injured or sick and can’t work, or (heaven forbid) you die, your mortgage repayments and/or entire mortgage is covered, together with other living expenses, in many cases.
With Trauma insurance, if you suffer a major trauma or illness, you receive a lump sum in the event you suffer from certain diseases and conditions. You can use a portion of this lump sum to make a mortgage payment.
Another insurance that is often packaged in is disability which covers you if you aren’t able to work as a result of illness or injury. It ensures your monthly mortgage payments are met.
Which Mortgage Protection Insurance Policy?
Mortgage Protection Insurance costs vary depending on what it covers. It also varies depending on your own medical history as well as your habits and where you buy the policy from.
Some people have difficulty understanding Mortgage Protection Insurance as they confuse it with another type of mortgage insurance which is a completely different type of product. Unlike Mortgage Protection Insurance, Lenders Mortgage Insurance is designed for a totally different purpose. Basically, LMI is designed to protect the borrower if you default on your loan and they need to sell your property and lose money from the sale of your home.
Before you take out mortgage protection insurance cover spend time understanding which package is right for your family’s financial and health needs, as well as budget. To find out more about the Mortgage Protection Insurance policty that is right for your family, simply talk to an experienced Wealth Concerns mortgage broker.
Contact Us
If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.