As a responsible mortgage owner, you always try to make sure that you set aside enough funds to make your mortgage repayments. It doesn't matter if you're making payments for your own home or for an investment property, what's important is that you make those payments on time. Otherwise, your lender would have to repossess your property.
You have little to worry about your mortgage if you have a regular income or have a profitable business. But do you know where you will get the funds to make the repayments in case something happens to you?
Because no one can really tell what the future holds, it's important that you take out mortgage protection insurance if you're a current mortgage holder. With this type of insurance, you will be able to have enough funds to help repay your mortgage in a lump sum or through regular payments. This is important because it provides you and your family with peace of mind that your property will remain in your possession whatever happens to you.
Types of Mortgage Protection Insurance
There are several types of mortgage protection insurance. One is which comes with your term life cover or total and permanent disability insurance policy. If you die or are unable to work for good because of total and permanent disablement, your beneficiaries will receive a lump sum payment enough to pay your mortgage in full.
Meanwhile there's also a policy designed when you lose your job due to redundancy. The funds you receive in this type of policy will help you make your mortgage repayments and avoid defaulting.
Temporary disablement and mortgage protection is another policy you can take out. This provides you with funds to help you repay your mortgage while you are recovering from your condition.
Features You Need to Look out For
As with other types of insurance policies, the level of coverage differs from insurer to insurer. Because of that, it's important that you look closely into the features of each policy. Areas you need to look into include the specific benefits you'll receive, the waiting period, as well as the insurance company itself. Naturally, you want to be covered by a trusted company. The last thing you want to happen is never get the benefits promised to you when you need it already.
Here at Rate Detective, our qualified advisors will help you find the right policy for your needs from Australia's top insurers. They will assess your personal circumstances and based on that provide you with recommendations. Contact us today for more details!