Mortgage insurance: Permanent Health Insurance

This week we will be looking at different types of health insurance that you can take when taking a mortgage, to ensure both payment of your mortgage and to protect you and your family from reposession of your home in the event of a tragedy. In the first of two artciles this week, we look at permanent health insurance cover, which provides you with a steady income, should you ever become unemployed due ill health or injury.

If, due to health reasons, you cannot work in your regular job, you will not be able to make your mortgage or house payments and will evenutally lose the property. Therefore it is wise to invest in a permanent health insurance cover to avoid it. In more and more cases, lenders are requiring permanent health insurance cover in order to approve mortages. Alternatively, your employer may offer health insurance, however you should always double check the details and contract to ensure your health cover will continue to provide in case you are forced to leave your job due to health reasons. Permanent health insurance covers offer 50% – 60% of your income at payout and is generally inflation proof.

When getting a permanent health insurance cover you should watch out for certain aspects. Some insurance companies cover only certain types of ailments and illnesses. Therefore you should read the small print and make sure that your cover provides for all types of illnesses. You should also look out for words such as “own occupation”. This generally means that if you are a carpenter and your illness means that you can be carpenter, the insurance company may not pay stating that you can stay at home and sew mailbags or work in some other capacity. You should also check your policy to make sure that your premiums do not increase over time. Some policy premiums increase with your age since the older you get, the chances of you making a claim is higher. It is always a good thing to hire a good insurance broker to guide you through the process and make sure you buy the best policy at the best price.