Income and Mortgage Protection

Income & Mortgage protection

Let’s ask a question here and we’ll warn you in advance it is a loaded question and your only answer will be to agree with us! So here goes:
“If you had a machine in your garage that printed money, say $50,000, $75,000 or $100,000+ per year would you insure it?”

Of course you would! Well guess what? You are that machine!

When asked what is their most valuable asset, most people will tell you it is their house, or their car or some other kind of personal position. In fact a person’s most valuable asset is themselves. Insuring your ability to produce income should not be underestimated.

Take a typical ,income of $45,000. If someone earns $45,000 per year over a 40 year work span, they will earn over $1.8 million in their working life without taking any wage rises into account. If you had a machine that could pump out $1.8 million or more would you insure it??!!

If you’ve already got Life insurance then you’ve faced the possibility that one day you may not be there to provide for your family or loved ones.

What is far more likely however is the possibility that you may be off work with an accident or illness at some stage during your working life. ACC report that a staggering 2 out of 5 people are unable to work for six months or more due to accident or illness at some point in their careers.

With ACC toughening up what they will and will not pay at claim time making the need for Income Protection even more vital to protecting your most important asset-you. Over 40% of long term claims are made up from illness related disabilities.

Again when looking at Income protection products it is important to know about all the various benefits and options available to you.

Is an Agreed or Indemnity plan best for you?

Is my cover tax deductable and tax assessable?

Should you take split cover and with what kind of waiting period? Which insurers pay in arrears and which insurers pay ‘up front?’

Do you have any offsets which could affect payout on your cover?

If you are mostly concerned about covering your mortgage repayments then Mortgage Protection could be the way to go. Designed specifically to cover the biggest single debt that many of us will undertake in our working lives you can have a choice of waiting periods and payment times. Some insurers can even attach redundancy cover to your Mortgage protection for added peace of mind.


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