What happens if I fall sick and cannot work for some time?
Falling behind on your mortgage payments is a very serious matter, and should be treated seriously and promptly. If you are suddenly injured or fall sick enough that you can not work for a period of time, which could affect your mortgage payments, you need to talk to your mortgage provider. Silence is a dangerous way to try and avoid an unavoidable situation which would lead to a mortgagee sale. By talking to your provider realistically about your financial troubles due to sickness, the more likely you can renegotiate payments and make it a manageable situation.
You should also invest in something called Mortgage Protection, which is like life insurance, but it covers sickness-related absences from work. You choose the amount you would like to protect which usually matches your ongoing repayments (known as a “wait period”, and a “payment period”.) If the worst happens and you become too injured or sick to work, once your “wait period” has ended, your insurer will start to make monthly claim payments. These can continue until you are once again able to return to work or until the end of your “payment period”, whichever comes first. Again, even with this protection, you need to let your insurer know that this is happening – otherwise, they will not know to make the claims due to your illness.
There are obviously some exclusions, but most health issues are covered and you can find out the individual terms and conditions while shopping around for an insurer. Some insurers allow you to add Redundancy cover to this plan but it is not a standard part of mortgage protection. For peace of mind, Mortgage Protection can be life-saving for your home if you one day become ill or injured.
Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
What kiwis are saying about usOur journey with our clients lasts beyond the life of their home loan. That’s why we ask them to keep us posted on how we are doing along the way.
Satish is a very honest man and genuinely cares for his clients. He gives very good advise to his clients based on their needs. I would highly recommend using his services. He also gives his 100% to get the best deals from the banks for his clients.
I have dealt with Satish on more than one occasion – primarily for arranging mortgage. I have found Satish a very knowledgeable and reliable person to deal with and he has a pragmatic approach to solving problems. I will be happy to deal with him again for any mortgage/financial advisory related matter and without any doubt recommend him to anyone seeking such services.
Satish was very helpful and informative in arranging finance for the home buying process. He clearly advised of all available options for the process and ran through the best fit for our situation. I highly recommend Satish.
Satish has been extremely friendly yet professional in his business dealings with me. He knows his subject very well, and provides valuable financial advice. I would highly recommend his services to anyone, because I have found Satish reliable and helpful.
I have solicited Satish’s advice quite a few times relating to Mortgage. At all times he has been able to provide insights that has helped me arrive at informed decisions. Satish’s candidness and willingness to help is highly commendable. I would have no hesitation in recommending him at all.
Plotting your path requires information.
We have created the tools to map the constellations so you don’t have to.
Latest Interest Rates
Check out the latest interest rates figures for all the banks in one convenient place with our helpful interest rate tracking tool. Remember we can often get even better interest rates so give us a call when you are ready to take the next step.