How would you meet your mortgage repayments if your income stopped tomorrow?
Your family home is often the biggest asset you will own, not to mention a fundamental and often sentimental part of any family unit – so it makes sense to protect it.
Life insurance and income protection insurance can not only help you safeguard your home, they can also help protect your family if your income is threatened by illness, disability or death.
If you’re buying a new home, now is the perfect time to consider your insurance options. If you don’t already have insurance cover over your current property then perhaps it’s time to reconsider. If you need a motivator, think about what would happen to your loved ones should the unforeseen happen.
The options
There are several insurance options available for homeowners, with many designed to protect your income, your family, your home, or all of these.
• Life insurance – Life insurance provides protection for your family in the unfortunate case of your death or if you are diagnosed with a terminal illness or develop a permanent disability that prevents you from working. It usually comes in the form of a lump sum payment which can help loved ones hold on to the family home.
• Income / mortgage protection insurance
This type of insurance offers you an ongoing income stream in the case that you are unable to work due to temporary illness or injury; it can also consist of a lump-sum payment in the event of death or total permanent disability. This means peace of mind for you and your family during difficult times, so you can concentrate on recovering safe in the knowledge that your mortgage repayments will continue to be met.
The cost
Premiums for life insurance products will depend on your provider as well as factors including your assets, your age, your gender and whether or not you are a smoker. At the bottom end you could pay as little as $30 a month – not a whole lot when you consider the advantages.
Do note however that premiums will increase with your age and you can be too old to take a policy out, so if you’re approaching your mid 50s it’s time to act!
As with any financial product, shop around to find the policy that is best for you. If you’re unsure give us a call and we’ll run through your options.
