Mortgage insurance NZ, has two main types:

• 1. Mortgage protection -
  Is a form of life insurance – Which will pay the outstanding balance of the mortgage, if the insured person dies.
  This cover is usually for the full amount of the mortgage. Some policies are designed to decrease, as the mortgage balance decreases, as it is paid off.
  This type of policy may offer a lower premium, since you’re not covering more than you actually owe.

• 2. Mortgage repayment insurance -
  Which is a form of  disability insurance, that will pay the regular mortgage repayments, if the insured person, is unable to work due to an accident or illness, until you are able to recommence earning income.

Additional features to consider

Some insurance policies offer additional features such as:

Premium waiver -
In the case of an accepted claim payment, your premium for the insurance will effectively be paid for by the insurance company, so you don’t have to pay the premium while you have no other income.

Additional insurance income waiver -
Where you have income being paid to you from another form of insurance, such as income protection, this income will not be considered as income, for the purpose of your insurance claim entitlement. Otherwise it would be pointless having both forms of insurance, if one insurance  payout caused you to be ineligible for a payout on the other policy.

Redundancy option -
This option will typically pay your mortgage repayments for six months, if you have been made redundant from your employment.

You need to carefully consider which type of policy suits you.

Reason for having this insurance -

• The reason you would want this type of insurance is in case you die, then your loved ones will not find they are burdened with having to pay the mortgage, or risk losing the property that is mortgaged. This is typically the family home. So imagine your situation, if you died would your loved ones be at risk of losing their home, if so it’s a good idea to consider mortgage insurance.

• It’s usually not that expensive and can be paid monthly, so it’s not too burdensome.

• Many mortgage lenders will insist you have mortgage insurance as a condition of giving you a loan on a property. They will also often offer you mortgage insurance from themselves or companies they are involved with. This may be the best offer, since it may avoid any disputes between different companies, if a payout was claimed.

It’s a good idea to shop around to find the best deal from a range of providers, that may include getting a quote directly from the insurance company, or approaching an insurance broker.

Make sure you are comparing like with like by reading the proposed policy documents, to see whats covered and what’s excluded.

The best insurance brokers will be familiar with market, and are therefore able to help you find the best deal, to suit your requirements and circumstances for Mortgage Insurance NZ.

Go to Insurance NZ from Mortgage insurance NZ.