An area you need to be aware of and where many people let themselves down is Insurance. When you buy a family home and take a mortgage out to fund the purchase you need to ensure your asset is going to be protected if something happens to you.
Don’t ask yourself, can I afford the insurance? Ask yourself can I afford not to be insured
We believe the question you should ask is how is my family going to cope with keeping our home in place if I am gone or unable to earn income due to disability or for health reasons. Buying a home is a major step and one you want to make sure is properly protected in the event of misfortune.
House Insurance – Insuring the house is essential. The bank or lender will not advance the loan if the house is not adequately insured.
Contents Insurance - While not essential it is strongly recommended that you also insure the contents of your family home. Imagine the devastation if fire burned your house and all of its contents to the ground and you did not have your contents insured. How would you pay to replace all of your items?
Life Insurance – While not essential it is strongly recommended. When you buy the home and take out a mortgage your whole risk profile changes dramatically. You need to ensure your life insurance is still sufficient to cover your family’s needs if something happens to you.
Trauma & Disability – While not essential it is strongly recommended. Not only do you need to ensure your family is protected if you die, but what about if you face serious disability or illness through an accident or health issue such as cancer or a heart attack.
Income Protection or Mortgage Repayment Insurance – While not essential it is strongly recommended. How are you going to make your monthly mortgage payments if you become sick for a while or lose your job. You need to make sure you can still pay for the roof over your families head.
At Kiwi Mortgage Market we have access to a full range of Insurance solution we can assist you with and we have specialist who will provide you with the right advice. Don’t ignore the insurance issue, address it!
Ask your Kiwi Mortgage Market Advisor for their advice. |
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