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16 Mar 2023

Buying or owning a house? How personal insurance can help

Home ownership is the quintessential Kiwi dream. So, how can you protect it, now and in the future? Unlike home insurance, personal insurance policies (like life cover or income protection insurance) are not mandatory when taking out a mortgage – but they’re still a good idea. Here's how personal insurance can provide valuable peace of mind for both new and existing homeowners.


Life insurance

If you've purchased a home with someone else, have you considered how they would manage if you were no longer around? Knowing that your spouse and family will be provided for financially can be a significant source of peace-of-mind.

You may opt for life insurance that covers your outstanding mortgage balance in full, as well as any other living or future expenses, depending on your needs. Unsure about the appropriate sum? Don’t hesitate to contact us: as insurance advisers, we can help you run the numbers.

Income protection insurance

If you were unable to work for a period of time, would you be able to cover your mortgage payments? While ACC would cover 80% of your income if you were injured, there is no coverage for sickness. And this is where income protection may be worth considering. 

This type of cover can replace up to 75% of your pre-disability gross income if you're unable to work due to a serious illness or injury. You can customise the length of time you receive payouts and the "standdown" period before a claim is payable, which can help fit income protection into your budget.

Mortgage protection insurance

Another option for ensuring that you can keep up with your mortgage payments in case of serious illness or injury is a mortgage protection insurance policy. This is designed to cover mortgage repayments and may not be offset against ACC, which means you could potentially receive a payment even if you were unable to work due to injury, as well as due to illness. To find out more, get in touch: we can discuss the type of cover that will work for you, and how it could integrate with other policies.

Trauma (or Critical Illness) insurance

Trauma insurance pays a lump sum if you experience one of the specified covered conditions listed in your policy, such as cancer, strokes, and heart attacks. Importantly, you can use the lump sum as you see fit. This can be incredibly helpful if you need to modify your home to accommodate a disability or if you want to have cash available to pay regular bills in case of a change in your health.

Like to discuss your needs?

Personal insurance is essential to protect your financial life and that of your family. As a homeowner, it's important to know that you can fulfill your obligations, regardless of what happens. Looking at exploring your options? Get in touch – we’re here to help.


Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Link Financial Group Ltd trading as Mortgage Link and Insurance Link FSP 696731 holds a licence issued by the Financial Markets Authority to provide financial advice. Insurance Link (NZ) FSP 446867 is authorised by that licence to provide financial advice. Please visit for more information and Disclosure information.