Mortgage Repayment Insurance
Mortgage repayment insurance this is something I want us to discuss. The reason I think Mortgage Protection is the best policy to have is based on two reasons:
- Mortgage repayment insurance pays in addition to ACC payments
- Mortgage repayment insurance can be seen as the best substitute for an Income Protection.
Mortgage Repayment Insurance in details
Please allow me to explain Mortgage repayment insurance in details. I promise I am only going to discuss important features and benefits.
Have you ever thought about how would your day look like if you had an accident? If you had then it definitely puts you in small group of people in New Zealand. Statically speaking people do not plan for bad stuff to happen.
Let’s say you break your right leg. It’s painful as you know… and no driving for long time… Many people think that “If I had an accident ACC will take care of me”. Partially it is true but wait – would you want to know why I say “partially”?
ACC pays 80% of your pre-accident income
If you are an employee, then your situation is much better to compare to a self-employed person. Reason for it is based on the fact that majority of self-employed people file their income tax to IRD once a year. Often it means that the amount ACC would pay is based on the previous year earnings.
May I ask you, are you happy with your income?
Now, think how you would feel if your income is cut by 20% and you require additional care. No driving remember…
Why do I say that? Well, it’s simple: Lets discuss typical household expenses like if we are in a supermarket:
- Mortgage or rent √ payment is made
- Food and bills √ – payments are made
- Expenses – all sorts, you name it, we pay it √ – payments are made
- And so on, and so on…
The point I’m trying to make is that: it is hard enough to look after the bills with 100% income and if you had an accident and your income is cut by 20% it became even harder. In order to get payments from ACC, you would have to collect all the paperwork, submit it to ACC and only then you would get paid.
All of the above applies if you had an accident; but what if you are sick… I mean seriously sick.
As you know ACC does not pay for sickness… Nada, zero, zilch…
Every time when I have an interview and discuss Mortgage insurance I ask this question: “Would you be able to keep up with your existing lifestyle without your income?”. This is exactly my point, if you are sick, you do not get your income.
There is a solution which is called Mortgage Repayment Insurance. Interesting fact: it can cover mortgage and rental payments. There is only one policy in New Zealand you would want to have. It would pay for your mortgage or rent when you are seriously sick and even if you had an accident. It is offered by a very reputable New Zealand insurer. Most importantly, the policy pays in addition to your ACC payments even if you had an accident or got seriously sick the day after you took the policy. Let me show you how Mortgage protection pays in addition to ACC payments if you break your right leg (as per my example above):
- Fracture of skull, jaw 30 days – which means one monthly benefit.
- Fracture of forearm, collarbone 30 days
- Fracture of wrist 45 days – as you can guess – 6 weeks of benefit.
- Fracture of upper arm, shoulder bone, elbow 60 days
- Fracture of vertebrae 60 days
- Fracture of kneecap 60 days
- Fracture of ankle, heel 60 days
- Fracture of leg below the knee (tibia or fibula) 60 days
- Fracture of leg above the knee (femur), pelvis 90 days
- Loss of thumb and index finger of the same hand 6 months
- Loss of one foot or one hand or sight in one eye 12 months
- Loss of one leg or arm 18 months
- Loss of any combination of two of the following: a hand, a foot, sight in one eye 24 months
- Loss of both feet or both hands or sight of both eyes 24 months
- Paralysis (Diplegia, Hemiplegia, Paraplegia, Quadriplegia) 60 months
Please note even if you are on claim, the policy does not take the waiting period into consideration – it just simply pays. No questions asked.
When does Mortgage Repayment Insurance pay?
There is yet something else we need to discuss: the policy even pays if you had a stroke or heart attack. It is extremely valuable for a business owner as yourself. Just think: No matter what happens to you – you are covered. Policy will pay the Monthly Benefit for six (6) months, irrespective of the waiting period, following the insured person being diagnosed as having suffered from any of the following conditions:
- Angioplasty – triple vessel *,
- Aorta surgery*,
- Cerebrovascular accident (stroke)*,
- Chronic renal failure (kidney failure),
- Coronary artery bypass surgery*,
- Heart Valve Surgery*,
- Major Organ Transplant,
- Myocardial infarction (Heart Attack)*,
- Multiple Sclerosis,
- Severe Burns.
I hope by now you agree: Mortgage Insurance is valuable and important for you and for your family. Please let me know if you want to receive a couple of quotes for Mortgage Repayment cover. Just email to me the amount of your monthly mortgage (or rental) payment and your full date of birth. As you know all insurance premiums are based on age.
One more thing about Mortgage protection
Mortgage repayment insurance benefit can be paid to you for 2 years, 5 years or until you turn 65 years old. According to New Zealand statistics 96% of all people on income protection benefits stay on it for less than 2 years. Which means that if you get yourself the above discussed policy with 2 years benefit:
- You would save a lot of money on insurance premiums
- The policy would provide you with precise risk coverage.
I look forward to receive your monthly mortgage/ rental amount and your name and full date of birth.