Two ways to protect your mortgage (and your home)

Taking out a home loan is one of the biggest financial commitments you’ll ever make, so protecting your ability to meet repayments over time makes sense.

Here we look at two types of Insurance that are designed to help mortgage holders: Income Protection and Mortgage Repayment Protection.

Why Mortgage Repayment Protection?

What would happen if you lost your job, or were suddenly unable to work? Would your family still be able to meet their mortgage obligations?

The term ‘Mortgage Repayment Protection’ is self-explanatory. It’s a powerful and simplified form of Personal Insurance that’s specifically designed to protect borrowers from the unexpected, covering the cost of regular monthly mortgage repayments if you lose your job or become seriously ill.

Of course, conditions apply depending on the Insurance provider you choose, including the payout amount and benefit period. Premiums also vary based on a number of factors, like cover type, repayment size and loan amount. If you’d like to know more, please don’t hesitate to reach out to us.

Why Income Protection Insurance?

If you’re looking for ways to protect your mortgage, Income Protection is another good option. As we said, your financial security depends on your ability to earn an income, and Income Protection Insurance is designed to safeguard this ability by providing a monthly replacement income should you become disabled or severely ill.

The amount of these monthly repayments is tied to what you earn, and can only be collected when you’re not able to work. Plus, you can tailor your policy to your needs by selecting a desired ‘benefit amount’, ‘wait period’ and ‘benefit period’. The choice strictly depends on a key question: financially speaking, how long could you ‘survive’ without earning an income?

When you consider how much you’re investing in your home, the importance of protecting it becomes immediately clear. It’s about the peace of mind that comes from knowing that – should anything happen to you – your family home is secure.

So if you’d like to discuss your options, please feel free to contact us: we can help you design an Insurance plan that’s suited to your circumstances.

An Adviser Disclosure Statement is available free and upon request.