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3 Benefits of Purchasing Mortgage Protection Insurance in New Zealand



Buying a home is one of the biggest investments you’ll ever make, and a sizeable amount of your salary will probably go towards paying off your mortgage. So, why not purchase mortgage protection insurance in the event you suffer an illness or accident and you can’t make regular repayments. This type of insurance will also have you covered if someone unexpectedly passes away.

  1. Affordable & Accessible

Mortgage protection insurance in Auckland is accessible for a huge number of Kiwis, it isn’t difficult to quality for, so you shouldn’t have any issues purchasing a policy. Mortgage protection insurance in NZ is a type of term insurance, this means that it isn’t really designed to provide cover for a long period, unlike life insurance. Because it is used to cover individuals in the event of an accident, death or illness, it is more affordable than other policies.

The amount of premium you’ll have to pay for cover is based on how much you have left on your mortgage, it can also include your age, health status and other important aspects. You will get asked a series of questions relating to your health, some insurance companies will also request you get a health check by a recognised medical facility. You’ll have to present this to them when you are purchasing mortgage protection. Some brokers won’t require a health exam, while other companies who specialise in mortgage protection insurance in Auckland may demand medical documentation.

  1. Additional Security

If your family depends on you to pay the mortgage, what would they do if you suddenly passed away? How would they make repayments? What would happen to your home if nobody was able to pay the bills? These are all important questions you should ask yourself if you’ve yet to purchase a policy. You also have the option of adding more to your coverage such as disability payments, if you suffer an accident which leaves you unable to earn as much as you were getting previously, you’ll still have help paying your mortgage. If you require competitive mortgage insurance that provides cover in the event of unforeseen circumstances, there are numerous brokers in Auckland who offer a first-rate service.

  1. Available Benefits

You may be asking yourself what happens if you’ve already paid off your mortgage and you now own your home? You can keep your insurance policy for the full term in most cases and if you the policy holder passes away the money will go to the designated beneficiaries. This means that if someone dies unexpectedly, their family or loved ones will receive a lump sum which can be used for any purpose they desire.

Not everyone will want to purchase mortgage protection insurance, but it makes a lot of sense for many Kiwis who consider it vital to have as additional security. To understand this policy in more detail, it is advisable to consult with an experience broker who can provide you with more information on this topic.


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