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JUL 18 2019
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How to repay my mortgage if I’m too sick to work?

Posted by: Connie in Finance 101

How to repay my mortgage if I’m too sick to work?


Your home is one of your most valuable assets. If you’re like most New Zealanders, you probably need to repay a mortgage over decades. You work hard to ensure that your family will never be without a roof over their heads. 

But what would happen if you were unable to work for a period of time or, worse, were no longer able to work permanently, leaving your family with the burden of mortgage repayments and other living costs? 

Many people assume that unfortunate situations will never happen to them, but disasters do happen. And in the worst-case scenarios, people do lose their homes.

In this week’s blog, our guest insurance broker expert, Stella Huang, discusses the benefits of mortgage income protection insurance, using a case study. This will give you an idea of how to protect yourself and your family against disaster.


Case study: How could Donald repay his mortgage when he was unable to work?


Donald works for a New Zealand IT company. One day, he injured his finger seriously when cutting a carrot. Consequently, he went to a hospital and had surgery. His doctor told him that he couldn’t work for three months.

Donald’s wife had just given birth to their new baby, so she couldn’t work. Before the injury, Donald had talked to Stella to ensure that if he couldn’t work due to health issues, insurance could cover his regular mortgage repayments and other family living costs. As Donald was the only source of family income, Stella recommended a very important insurance – mortgage income protection.



What is mortgage income protection insurance?


Mortgage income protection insurance ensures that if you are unable to work due to illness or injury, your insurance company will pay your mortgage.

Thanks to mortgage income protection insurance, Donald received enough income from his insurance company to repay his mortgage until he could come back to work. Additionally, he didn’t need to pay the insurance premium when he wasn’t at work. 

Note that mortgage income protection insurance won’t affect any ACC payment you might be entitled to, but it  can fill in gaps where ACC might not cover you.


Need an insurance broker?


Insurance can be complicated, and you need an insurance broker to help you understand product details and work out what level of cover you need so that you are properly protected. That’s why we highly recommend you engage a qualified insurance broker, like Stella, to protect you if the worst happens. You can contact Stella via email, stella.huang@sis8.co.nz, or phone 021 382 988.


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.


Prosperity Finance – here to help


Prosperity Finance looks at property investment strategically, empowering you to make the best long-term, informed decisions. We are professional mortgage brokers and are here to help. Give us a call today on 09 930 8999.


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How to repay my mortgage if I’m too sick to work?


Your home is one of your most valuable assets. If you’re like most New Zealanders, you probably need to repay a mortgage over decades. You work hard to ensure that your family will never be without a roof over their heads. 

But what would happen if you were unable to work for a period of time or, worse, were no longer able to work permanently, leaving your family with the burden of mortgage repayments and other living costs? 

Many people assume that unfortunate situations will never happen to them, but disasters do happen. And in the worst-case scenarios, people do lose their homes.

In this week’s blog, our guest insurance broker expert, Stella Huang, discusses the benefits of mortgage income protection insurance, using a case study. This will give you an idea of how to protect yourself and your family against disaster.


Case study: How could Donald repay his mortgage when he was unable to work?


Donald works for a New Zealand IT company. One day, he injured his finger seriously when cutting a carrot. Consequently, he went to a hospital and had surgery. His doctor told him that he couldn’t work for three months.

Donald’s wife had just given birth to their new baby, so she couldn’t work. Before the injury, Donald had talked to Stella to ensure that if he couldn’t work due to health issues, insurance could cover his regular mortgage repayments and other family living costs. As Donald was the only source of family income, Stella recommended a very important insurance – mortgage income protection.



What is mortgage income protection insurance?


Mortgage income protection insurance ensures that if you are unable to work due to illness or injury, your insurance company will pay your mortgage.

Thanks to mortgage income protection insurance, Donald received enough income from his insurance company to repay his mortgage until he could come back to work. Additionally, he didn’t need to pay the insurance premium when he wasn’t at work. 

Note that mortgage income protection insurance won’t affect any ACC payment you might be entitled to, but it  can fill in gaps where ACC might not cover you.


Need an insurance broker?


Insurance can be complicated, and you need an insurance broker to help you understand product details and work out what level of cover you need so that you are properly protected. That’s why we highly recommend you engage a qualified insurance broker, like Stella, to protect you if the worst happens. You can contact Stella via email, stella.huang@sis8.co.nz, or phone 021 382 988.


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.


Prosperity Finance – here to help


Prosperity Finance looks at property investment strategically, empowering you to make the best long-term, informed decisions. We are professional mortgage brokers and are here to help. Give us a call today on 09 930 8999.


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