What is Income Protection Insurance?
Income Protection Insurance is a monthly benefit which replaces your income. It replaces your income for any medical incident that keeps you from being able to work. The polices will also work closely with ACC giving you complete cover for both accidents and illness.
Why Income Protection Insurance?
Income Protection helps you in the event that you face an illness or injury that stops you from working. Income protection provides you with regular payments. These payments cover your ongoing financial commitments like household bills and mortgage or rent payments. Think about it as a way to protect your ability to earn an income.
Mortgage Protection Insurance:
What is Mortgage Protection Insurance?
Having a short-term illness which causes you to miss work can have significant financial consequences. While ACC will cover you for an injury, illnesses won’t be covered. You will need to find the money to keep up with mortgage repayments.
Why Mortgage Protection Insurance?
Mortgage Protection Insurance covers your monthly repayments should you be unable to make them for as long as your policy states. This covers you for illness, disability, redundancy and mental health conditions, but, like all insurance policies, there are exceptions and exclusions. Mortgage protection insurance eliminates this risk by taking care of repayments for a set period of time, or until you retire. For many people, it can be an effective product.
Mortgage protection insurance costs will vary based on factors such as your age, minimum wait period before claiming, and the cost of your mortgage repayments. If you do need to claim, most insurers will pause the cost of your policy while you’re unable to work so that your payouts are not being spent on insurance costs.
Having an Income Protection or Mortgage Protection is an important part of your overall insurance plan. Not all policies are the same. We can help you understand what you can be covered for, and what you are not.
Interested in finding out more about these products? Contact us today.