Mortgage protection insurance

Mortgage protection insurance

One of the biggest risks homeowners face is losing their home due to a loss of income as a result of being unable to work through accident, illness, or redundancy. This is where mortgage protection cover can help.

Mortgage protection cover will make sure that you can keep meeting your mortgage obligations, freeing you up to focus on recovery and returning to work, or finding new employment in the case of redundancy.

You can find out more about the various mortgage protection insurance products we can source from our preferred suppliers below, including a sample of the product research we use when assessing product quality.

Frequently Asked Questions

  • What is the difference between mortgage protection and income protection insurances?
    The main difference is that, unlike with income protection cover, mortgage protection cover has no offsets for ACC. This means that you will receive the full mortgage protection benefit if you are off work and on ACC claim.
  • Do I need to have a mortgage in order to implement mortgage protection cover?
    No, you can also obtain mortgage protection cover if you are renting. Rather than base the level of cover on your mortgage repayments, your level of cover is based on how much you earn. This is similar to income protection cover, but with the bonus of no ACC offsets.
  • Is mortgage protection cover available with a Level Premium option?
    Not at present. This is where it really pays to have an experienced adviser who can help you find the sweet spot that balances short-term benefits with long-term affordability.
  • How does redundancy cover work?
    Redundancy cover will pay you a monthly benefit for up to 6 months if you have been made redundant from your usual occupation. These covers have a short stand-down period (4 weeks), and pay monthly in advance. This means that your will start getting money when you need it, so you can focus on finding new employment rather than worrying about how you are going to pay your bills.