Income Protection VS Mortgage Insurance

What about Income Protection Insurance

Have you ever compared both policies in order for you to know – what would be better for you?

Have you ever asked yourself a question: what is better (?) to think that ACC would pay you? Or to put in place something specific?  Or thought about Income Protection VS Mortgage Insurance makes you worry and you do not know what to decide?

In New Zealand ACC may provide cover for injuries up to certain limits, but won’t cover you for any illness. This means that only people who have Income Cover or Mortgage Insurance policy in place can feel that they are protected.

Income Cover VS Mortgage Insurance

The questions you would want to ask yourself are:

How would you cope financially if your income stop coming in?

How long would you be able to live without your normal income? A month? Two? Or a couple of weeks?
Let me remind you how an Income Protection policy works:
Income Protection Cover pays up to 75% of your pre- disability income.

The amount you would be able to claim depends on the structure of the policy. It can be Agreed value or Indemnity value. Agreed value is normally 55% of your pre – disability income and Indemnity value is 75%.

If you want real help with your Mortgage or Income Insurance call us now
09 525 46 75

Income Protection Cover provides monthly payments for 2 years, 5 years or until you are 65 (your choice), that will depend on the cover you choose, if you are unable to work due to sickness or an accident.
Income protection cover have an agreed waiting period, which can be 2, 4, 8, 13, 26, 52 or 104 weeks -your choice, which should depend on your situation and affordability.
Income Cover allows you to continue to pay your day-to-day expenses such as your mortgage, groceries, phone bills, power and school fees.
So, even if unexpected should happen, you will receive up to 75% of your income .

Mortgage Insurance - online quotes

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What’s better Income Protection or Mortgage Insurance?

Mortgage Insurance

Pays you regular monthly payments if you are unable to work due to a disability, you are seriously sick, injured.
The policy can be structured for 2 years, 5 years or to the age of 65.
The waiting period can be structured to minimize the premiums you pay with options: 30, 60 or 90 days.
You can take out Mortgage Protection Insurance for your investment property. Mortgage insurance for your investment property with maximum of $3,500.
You can take out Mortgage Protection Insurance even if you are renting.
Your benefit payments under Mortgage Repayment Protection will not be reduced due to any ACC claims– this is the major difference with an “Income Protection” insurance.
You will get full amount you are insured for even if you get ACC payments.
You can make as many claims as you need over the life of your Mortgage insurance policy.
You can keep the original amount you are insured for even if your mortgage reduces.
There are monthly benefit limits: Minimum of $500 or up to maximum of $5,000.
The cover is available for employed and self-employed people.
The policy can be underwritten on two options:
1. Using your mortgage repayments.
2. Using your income.
This is a scenario which will help you to realize how valuable this policy can be for you.

I am going to compare Income Protection VS Mortgage Insurance. An Income Protection with ‘Agreed Value’ benefit and ‘Mortgage Repayment Policy’.

Agreed Value Income Protection 30 Days Waiting Period
To Age 65
Mortgage Repayment Policy 30 Days Waiting Period
To Age 65
Pre-Disability Income $80,000 Pre-Disability Income $80,000
Agreed Value Monthly Benefit $2,666 Agreed Value Monthly Benefit $2,666
ACC/ Other Monthly Income at Claim $5,333 ACC/ Other Monthly Income at Claim $5,333
Annual Premium $835.68 Annual Premium $818.78
Monthly Benefit Payable at Claim $ NIL Monthly Benefit Payable at Claim $2,666
Total Monthly Income at Claim $5,333 Total Monthly Income at Claim $7,999

It is a tough call to compare Income Protection VS Mortgage Insurance and in order to do so all the personal situation should be taken into account. If you feel you want to discuss your situation please call me now 09 525 4675 or request a callback through this form

Income protection from Fidelity Life, Asteron Life & AMP

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Testimonials from our existing clients

Exceptional service and an invaluable help!

I would like to thank Vlad Ivanov for an exceptional service and an invaluable help.  As our family Medical insurance adviser and agent he is providing an outstanding service. Vlad Ivanov is professional, very helpful and always there if we need. I greatly appreciate his genuine care of our family health and attention to details. He make any insurance processes quick, seamless and smooth. We look forward to a long relationship with Vlad Ivanov.

Alina Antsiferova
5.0
2016-04-19T15:05:56+12:00
I would like to thank Vlad Ivanov for an exceptional service and an invaluable help.  As our family Medical insurance adviser and agent he is providing an outstanding service. Vlad Ivanov is professional, very helpful and always there if we need. I greatly appreciate his genuine care of our family health and attention to details. Read more →

Vlad does everything for you from start to finish to achieve top result

We have been with Vlad Ivanov for a few years and we are very happy with all aspects of insurances he does for us. Vlad offers professional and prompt service and is a nice person to deal with. If you require to do a claim then Vlad does everything for you from start to finish to achieve top result and hassle free experience for the client. I can highly recommend Vlad to people who are thinking about any type of insurance.

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5.0
2016-04-19T15:12:45+12:00
We have been with Vlad Ivanov for a few years and we are very happy with all aspects of insurances he does for us. Vlad offers professional and prompt service and is a nice person to deal with. If you require to do a claim then Vlad does everything for you from start to finish Read more →

Vlad offers professional and prompt service

Vlad Ivanov has been our family insurance broker for almost 2 years. He offers professional and prompt service and is a nice person to deal with. I can highly recommend Vlad to people who are thinking about any type of insurance.

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5.0
2016-04-19T14:58:11+12:00
Vlad Ivanov has been our family insurance broker for almost 2 years. He offers professional and prompt service and is a nice person to deal with. I can highly recommend Vlad to people who are thinking about any type of insurance.

Vlad managed to get sorted for me a medical claim for a surgery in Australia

We have been with Vlad for a few years now and we are extremely happy with all aspects concerning our insurance. Vlad goes above and beyond to insure the best outcome for his clients, he guides you from the start to the finish line of your insurance claim (if one needed). Vlad is so nice, helpful and genuinely cares about the client that every experience has been very hustle free. Recently, I had to get a very prompt confirmation for a medical claim for a surgery I had to undergo in Australia - I could not believe how Vlad managed to get everything sorted for me in such a short time and with an outcome that I’ve never even expected! I highly recommend Vlad to anyone who requires any type of insurance. Thank you Vlad.

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Olga Kozlova

Administrator at Eastern Rentals

5.0
2016-04-19T11:47:46+12:00

Olga Kozlova

Administrator at Eastern Rentals

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Vlad is so nice, helpful and genuinely cares about the client that every experience has been very hustle free. Recently, I had to get a very prompt confirmation for a medical claim for a surgery I had to undergo in Australia - I could not believe how Vlad managed to get everything sorted for me in such a short time
5.0
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Important to understand: All Insurance companies in New Zealand have different rules and regulations regarding Income Cover underwriting, which means that everybody’s situation is different. It often
depends on occupation, level of income and most importantly your health, age and weight.

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09 525 4675