Mortgage Repayment Insurance
This cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to meet your mortgage repayments. The monthly benefit is designed to cover mortgage repayments on your behalf during treatment and recovery.
If you currently have a mortgage and your income is required to meet these mortgage repayments in part or in full, then this is certainly an important part of your personal protection to ensure your family home is not at risk.
Your choice of waiting periods and payment terms
Your cover provides you with the flexibility to structure your plan to most closely suit your needs. You have a choice of six waiting periods, the period of time before your monthly benefit begins after becoming disabled; either 4, 8, 13, 26, 52, or 104 weeks. You also have a choice of two cover terms, either to age 65 or 70, and six payment term options of three, six or twelve months, two or five years or to the end of the cover term.
I will assist you to understand the implications of these options to enable you to make the best choice for your mortgage repayment insurance base on your personal circumstances.
Once the mortgage has been repaid
You can keep the agreed cover in place even once the mortgage has been completely repaid, as long as you keep paying the premiums. Certain offsets that apply to income cover will also apply to your cover in these circumstances.
If you suffer from one of the specific injuries listed below, your mortgage repayment insurance will be paid the monthly benefit for a specified minimum period, irrespective of whether you return to work within that time frame. If your disability lasts longer than the specified minimum period the normal monthly benefit will continue to be payable. Minimum specified periods can be found in the Mortgage Repayment Cover Protection Benefit Sheet.
If you suffer from one of the critical illnesses listed below, you will be paid the monthly benefit for a minimum period of six months (For payment terms of three months, this benefit will pay a maximum of three months) irrespective of whether you return to work within that time frame. If your disability lasts longer than six months the normal monthly benefit will continue to be payable.
Retraining and rehabilitation
If you are receiving a claim under your cover, the insurer may pay up to twenty-four times the monthly benefit to reimburse costs associated with retraining and/or rehabilitation programmes that might assist you to return to work. This benefit is not available for payment terms less than two years.
Mortgage repayment insurance is critical when it comes to managing your core debt repayments in the event that you are unable to work due to sickness or accident. If you would like a quote, please contact me.
The above benefits are summary examples only and may not be a full list of benefits which may be available to you. The exact types of cover and benefits will change depending on the insurer and the specific policy. Please contact me for a comprehensive list of benefits available.
Mortgage Protection Insurance
Most insurers have some form of mortgage repayment insurance but be careful you do not take the same policy out with more than one insurer otherwise, you may end up in a stalemate of who is going to pay. Also, you need to take into consideration whether you currently have Income Protection insurance as well as there may also be offsets and deductions at claim time if you are over insured so you need to make sure you set up your Mortgage Payment Protection Plan correctly.
For professional advice and quotes for your mortgage protection insurance, please contact me.