Mortgage repayment cover can help if you are unable to work. In general terms if you are not able to work for more than ten hours per week, mortgage protection insurance can step in to ease the cashflow.
Whats different when compared to other types of cover?
The difference between this and other critical illness or trauma type cover is vast. Unlike trauma cover which has a list of covered conditions, mortgage protection cover is much more open ended. Also the claims for any mortgage repayments are not offset by any ACC claims you might be eligible for.
Basically if you cannot physically work, you are most likely covered. Of course between policies there some nuances.
How can I make it more affordable?
Such as, having a longer wait period before the covers starts to help makes the premium cheaper. The amount of time you continue to get help while you cannot work also has an impact on premiums. Cover term usually can be from a couple of years to retirement age(age 65).
What if I lose my job?
Redundancy can be covered depending on the policy, usually only after six months of having the cover and is limited to a six month cover term.
It is important to get specific guidance from an adviser such as Sandy to get actual details of what is covered, it is also subject to your health when you are taking the cover.
Done independently it can be mobile as in, even if you change banks the cover applies and usually even after having the home loan paid off, converts to income cover.
