One of the greatest commitments (other than marriage and children) people make, is to a mortgage. Depending on their financial situation, they can be tied into a payment plan for decades.
Meeting such a large obligation isn't always easy, especially should something happen to your income. This is where the benefits of mortgage repayment cover come into play.
Understanding mortgage repayment cover
The idea behind mortgage repayment cover is to step in with your payments if there's a time when you're not able to work.
If injury or illness prevents you from bringing in an income, the mortgage repayment cover will provide the funds to meet your requirements until you return to work. This way, you can focus on recovery, not finding the extra money needed to pay this regular expense.
When deciding on a policy, you choose when it kicks in. Generally, you'll have the option of a waiting period of four, eight, or 13 weeks, after which the payments will begin. How long you want the cover to make your mortgage payments is up to you as well. It's possible to only have it protect you for two or five years, or all the way until you turn 65.
Some companies will allow you to cover up to 115 per cent of your mortgage repayments as well. This is so that you can use it to pay additional expenses, such as rates, or home and contents insurance.
What should you look out for with mortgage repayment cover?
As with every type of cover, you need to watch out for certain clauses.
Pre-existing conditions are rarely included in mortgage repayment cover. This includes conditions that you weren't aware that you had when applying, however, had already seen a specialist about some of the symptoms leading up to it.
Check also whether redundancy is covered. Not all insurance providers will include this in mortgage repayment cover, and if they do, it's sometimes considered an optional extra, rather than something that's naturally part of the policy.
Read over the list of injuries and chronic illnesses they cover and check their definitions around partial and total disabilities, so you're aware of what you can claim for.
At Money Empire, we understand that wading through different insurances to find the right one isn't easy. Which is why we're here to help you find the best solution, to protect you while you're building your empire. Reach out and talk to us today to see what we can do for you.