Why life cover is worth considering

Owning a home often comes with a mortgage – a big financial commitment. If you were no longer around, would your family be able to handle mortgage payments on top of everyday expenses?

Here’s where life insurance can be invaluable. It’s designed to provide peace of mind by offering a safety net for your loved ones. In the event of your death or a terminal illness, the life insurance lump-sum payment can take care of mortgage repayments and protect the family’s home. The key thing is to take out enough cover for your needs.

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How much life insurance do you need?

The right level of cover depends on your situation – it’s impossible to provide a ballpark figure without knowing your circumstances. That’s why we recommend talking to an Insurance Link adviser. We can help you gauge where you stand and tailor your policy accordingly. 

Generally speaking, covering the outstanding mortgage balance is a good starting point. From there, look at other expenses like:  

• Daily living costs for your family 

• Education expenses for children 

• Retirement savings for your partner 

It’s also important to balance coverage with affordability. That means choosing a policy that fits your budget, so you’re not stretched financially while protecting your family. 

Keep in mind that your insurance needs will change over time. For example, as you pay down the mortgage, you may be able to reassess and perhaps reduce your life insurance coverage (and its costs). 

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Other types of insurance to consider

For mortgage holders, life insurance isn’t the only type of cover worth discussing. For example, you may also look into: 

• Mortgage protection insurance: Covers your mortgage repayments if you’re unable to work due to illness or injury. Find out more.

• Income protection insurance: Simply put, it’s designed to replace a portion of your income if you’re unable to work for an extended period. Find out more.

• Health insurance: Helps cover medical costs, ensuring health issues don’t strain your finances. Find out more.

These are just some examples to start with. If you’d like to talk about your unique needs, get in touch: we’re here to help.  

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From mortgage to home and contents insurance

When buying or owning a home, taking a holistic view of your financial life is important. At Insurance Link, we work closely with Mortgage Link (https://mortgagelink.co.nz/), offering expert mortgage advice, and FG Link (https://fglink.co.nz/), who provide tailored home and contents insurance solutions.  

Together, we can help you ensure you make well-informed decisions at every stage of your home-ownership journey. Contact us to learn more.  

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We’re here to help

Understanding insurance options can feel overwhelming – but you don’t have to go it alone. We can help you assess your financial situation and insurance needs, compare policies from different providers, and tailor your coverage to ensure it meets your goals and budget.

Do you have any questions? Get in touch today.

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 development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek financial advice.

A full disclosure statement for each Insurance Link Adviser is available on request and free of charge.