You worked tirelessly to own your dream home, but you’ve suffered an injury or illness that prevents you from working, will income protection cover your mortgage repayments?
Whether you’re involved in a car accident or suffer from a debilitating illness, you want to focus on getting back on track rather than worrying about finances or mortgage payments. The Australian Institute of Health and Welfare reports that over a third (35%) of Australian households have a mortgage, so having a financial security blanket ready if the worst should happen is paramount.
Taking out insurance can help remove the stress of worrying about mortgage repayments. Below, we shed some light on what income protection insurance can offer when it comes to keeping the roof over your family’s head.
How can income protection help cover my mortgage?
Income protection may serve as an alternative source of income if you’re temporarily unfit to work due to an illness or injury.
A monthly payment of up to 70% of your income for a nominated period can help you keep your household up and running and provide for you and your loved ones while you recover. If you require a prolonged period off work to recuperate, income protection may relieve the financial burden of making mortgage repayments. Income protection insurance is paid out in monthly instalments that can help cover your mortgage repayments, and you can purchase income protection on its own, or in a package which can be tailored to suit your personal situation.
If you are looking for something in the form of lump-sum cover, Total and Permanent Disability (TPD) insurance can provide you a lump sum payment if you become permanently disabled due to accident or illness. You can opt to use this for medical or rehabilitation treatments and it can also go towards paying off your mortgage.
Having financial support available for unforeseen illness or injury means you can focus on your recovery. To find out more about your options, please get in contact with your local William Buck Health Specialist.(Link to health page)
Any advice is general in nature only and has been prepared without considering your needs, objectives, or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors