Get peace of mind with mortgage insurance
Mortgage insurance provides a safety net for homeowners, ensuring that their families are not left with the financial responsibility of the mortgage in the event of disability, illness, or death.
By obtaining mortgage insurance, you can confidently pursue homeownership knowing that you have a backup in place to safeguard your property.
Mortgage insurance is an umbrella term that includes the following forms of life coverage:
- Income protection insurance
- Family income benefit
- Critical illness coverage
- Life insurance
At My Mortgage Finder, we understand that purchasing a home is a significant milestone and an exciting journey. You’ve diligently searched for the perfect house, negotiated the terms, and now it’s time to think about safeguarding your investment.
That’s where mortgage insurance comes in – your trusted shield of protection.
We’re here to demystify mortgage insurance and help you navigate this crucial aspect of homeownership and the mortgage process. We believe that knowledge empowers, and with our expert guidance, you’ll gain the understanding needed to make informed decisions with confidence.
We’ll walk you through the ins and outs of mortgage insurance, providing clear explanations without overwhelming you with jargon.
What you need to know about Mortgage Insurance
Mortgage insurance or mortgage payment insurance, is a type of insurance that is designed to protect lenders and borrowers in the event that the borrower is unable to make mortgage payments. It allows you to keep paying your mortgage when you can’t receive a secure income – this could be due to a long-term illness, sudden injury, or death.
Mortgage insurance can take several forms:
- Income protection insurance – covers a portion of your income in the event of injury or redundancy.
- Critical illness coverage – insurance for long-term conditions, usually given in the form of a lump sum payment.
- Family income benefit – a type of insurance that covers only your mortgage payments.
- Life insurance – general life coverage that can include critical illness coverage and family income benefit – this is only paid out when you pass away or become terminally ill.
Mortgage insurance can vary in cost depending on a number of factors, including the level of cover required, the type of cover chosen, and your age, health, and lifestyle.
Get in touch with My Mortgage Finder today for personalised advice on what type of mortgage insurance will work best for you.
Types of Mortgage Insurance explained
Income protection insurance is designed to provide you with a regular income if you’re unable to work due to illness or injury. It can help to cover your mortgage repayments and other living costs, providing you with financial support when you need it most.
Income protection policies typically pay out a set amount of money each month (typically 50% to 65% of your income), for an agreed period of time.
In some cases, Statutory Sick Pay can be paid for a certain period of time – this will depend on your employer, and usually is not enough to support you mortgage payments and cost of living. With income protection insurance, there is a pre-agreed waiting period – this is called a ‘deferred’ period, which is the time between the claim and before payments start.
The duration of income protection insurance payments is usually until you start working again. If you don’t return to work due to your injury, the payments will last until you retire, the policy term ends, or, in unfortunate cases, until you die.
Learn more
Critical illness cover provides you with a tax-free lump sum payment if you’re diagnosed with any specified illness or medical condition listed in the policy. Many comprehensive policies cover 50 or more different conditions, including permanent disabilities as a result of injury or illness.
One important factor to consider when choosing critical illness coverage is your risk level. Your family history, lifestyle, and other factors can impact your likelihood of developing a critical illness, and this will influence the cost and coverage of your policy.
The coverage can help you pay for medical expenses and rehabilitation costs, as well as lost income if you are unable to work due to your illness. You can use this towards monthly mortgage payments and other expenses that would usually be covered by your regular income. The amount of coverage you receive depends on the policy and the level of coverage you choose.
Examples of critical medical conditions that might be covered:
- Heart attack
- Cancer
- Stroke
- Organ failure
- Traumatic head injury
Chronic illnesses such as multiple sclerosis or Parkinson’s disease may be covered depending on the insurance policy.
Learn more
Mortgage life insurance is a type of insurance designed to pay off your outstanding mortgage balance when you pass away. The payout will be in the form of a lump sum payment.
This type of insurance is different from regular life insurance policies as it is specifically tied to your mortgage. With a mortgage life insurance policy, you will typically have the same amount of coverage as your outstanding mortgage balance. This is often sold as a ‘decreasing-term’ policy, which means that as you gradually pay off your mortgage, the payout after you pass also reduces.
While mortgage life insurance is not mandatory when taking out a mortgage, it is definitely worth considering, especially if you have dependents who rely on your income to cover household expenses.
Learn more
Types of Mortgage Insurance explained
Income protection insurance is designed to provide you with a regular income if you’re unable to work due to illness or injury. It can help to cover your mortgage repayments and other living costs, providing you with financial support when you need it most.
Income protection policies typically pay out a set amount of money each month (typically 50% to 65% of your income), for an agreed period of time.
In some cases, Statutory Sick Pay can be paid for a certain period of time – this will depend on your employer, and usually is not enough to support you mortgage payments and cost of living. With income protection insurance, there is a pre-agreed waiting period – this is called a ‘deferred’ period, which is the time between the claim and before payments start.
The duration of income protection insurance payments is usually until you start working again. If you don’t return to work due to your injury, the payments will last until you retire, the policy term ends, or, in unfortunate cases, until you die.
Learn more
Critical illness cover provides you with a tax-free lump sum payment if you’re diagnosed with any specified illness or medical condition listed in the policy. Many comprehensive policies cover 50 or more different conditions, including permanent disabilities as a result of injury or illness.
One important factor to consider when choosing critical illness coverage is your risk level. Your family history, lifestyle, and other factors can impact your likelihood of developing a critical illness, and this will influence the cost and coverage of your policy.
The coverage can help you pay for medical expenses and rehabilitation costs, as well as lost income if you are unable to work due to your illness. You can use this towards monthly mortgage payments and other expenses that would usually be covered by your regular income. The amount of coverage you receive depends on the policy and the level of coverage you choose.
Examples of critical medical conditions that might be covered:
- Heart attack
- Cancer
- Stroke
- Organ failure
- Traumatic head injury
Chronic illnesses such as multiple sclerosis or Parkinson’s disease may be covered depending on the insurance policy.
Learn more
Mortgage life insurance is a type of insurance designed to pay off your outstanding mortgage balance when you pass away. The payout will be in the form of a lump sum payment.
This type of insurance is different from regular life insurance policies as it is specifically tied to your mortgage. With a mortgage life insurance policy, you will typically have the same amount of coverage as your outstanding mortgage balance. This is often sold as a ‘decreasing-term’ policy, which means that as you gradually pay off your mortgage, the payout after you pass also reduces.
While mortgage life insurance is not mandatory when taking out a mortgage, it is definitely worth considering, especially if you have dependents who rely on your income to cover household expenses.
Learn more
Why do we recommend Mortgage Insurance?
At My Mortgage Finder, we recommend mortgage insurance to all of our clients. Although there is no general law that requires you to have insurance when taking out a mortgage, a lot of lenders highly recommend you to take out mortgage insurance.
Why do some mortgage lenders highly recommend insurance? Because it offers a safety net to both yourself and the lenders. No one plans for the unexpected, but if the worst were to happen, you know that you and your family have something to fall back on and so do lenders.
With mortgage insurance, you can protect your family and the property you’ve worked so hard for. Not only that, but mortgage insurance also:
- Pays for Living Expenses: Some mortgage insurance policies include living expense coverage, which can provide funds to cover some of the family’s monthly living expenses while they adjust to life without the primary breadwinner.
Save time finding Mortgage Insurance with My Mortgage Finder
Why worry about the unexpected when you can enjoy peace of mind? Our mortgage insurance service offers you the protection you need to safeguard your investment, your home, and your family’s financial security. We’re here to ease your concerns, ensuring that unexpected events won’t jeopardise the foundation you’ve built.
We provide a range of mortgage insurance coverages – from critical illness coverage to income protection, we can find something that fits your unique needs. Outside being whole-of-market mortgage brokers, My Mortgage Finder provides insurance solutions and financial advice when needed.
We have a team of knowledgeable mortgage professionals with experience in a wide range of services – traditional mortgages, bad credit specialists, Buy to Let mortgages and more.
To learn more about our mortgage services, contact one of our professional advisers today.
Working with trusted and verified lenders
