7 May 2010
Worthwhile advice to consider on how to protect your mortgage should circumstances change discussed below by qualified and experienced Financial Planner, Terry Simmonds
“It is a requirement that you adequately insure your home when you have borrowed money to buy it. Shop around for the best quotes, but make sure what cover you are getting for your premium. Insurance Brokers can source out the best deal for you, or you may get discounts with other companies with whom you have dealt with for a long time."
Having insured your home and contents, it is also equally important that you insure yourself. In the event of the death of the main breadwinner, inability to work or losing employment, then retention of the home for the family must be a priority. Who will be able to repay the mortgage?
Seek financial advice with regard to your own personal insurance protection. You need to consider Death Benefits, Total and Permanent Disablement, Trauma Cover and Income Protection. Don’t get daunted by these as personal insurance protection is just as important as property insurance.
See your Financial Planner, if you have one, or have a look at what risk protection cover your current superannuation provider offers. Be aware of “accidental death” policies, as these mean what they say… accidental.”