The right insurance for your mortgage

Getting the mortgage is one thing. Looking after it is another.

Insights with Infinance by Brian Coogan 

Buying a home is exciting. There are keys to collect, rooms to fill and plenty of plans for the future. But alongside the excitement of taking on a mortgage, it’s worth having a conversation about what happens if life doesn’t quite go according to plan.

When you take out a mortgage or increase your lending, your financial commitments increase too.

For most people, the plan is straightforward: work, earn an income and make repayments. But illness, injury, redundancy or an unexpected health event can change things quickly.

That’s where the right insurance can help.

House and contents insurance protects the property securing the mortgage and the things that make it a home. It’s worth checking that the level of cover reflects realistic rebuilding and replacement costs.

Life insurance can provide a lump sum if you die, which could be used to reduce or repay the mortgage and help give your family greater financial security.

Income protection can replace part of your income if illness or injury prevents you from working. After all, the mortgage doesn’t stop just because your paycheque does.

Trauma insurance can provide a lump sum following certain serious medical conditions, giving you some financial breathing space while you focus on recovery.

Health insurance can also be valuable. Your health is one of your biggest financial assets, and private health insurance can help you access eligible treatment sooner, helping you get back to work and life.

Mortgage protection insurance is designed to help with mortgage repayments when certain unexpected events affect your ability to meet them, providing another layer of protection around the home loan.

There’s no magic formula and no one-size-fits-all answer. The right combination depends on your mortgage, income, family, assets and existing cover.

At Infinance, we believe insurance should be part of the mortgage conversation from the start — and worth revisiting as life changes.

Because a good mortgage plan isn’t just about getting the loan.

It’s about making sure the plan still works when life throws you a curveball.

We’re Infinance. Finance. Mortgages. Insurance. We can do that.

For more on the above go to www.infinance.co.nz

Written by Brian Coogan, Licensed Financial Adviser and Director at Infinance – Taupo

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