Buying a house - what insurance do you need?
If you’ve recently bought your first home, or upgraded to a new home, your lender or mortgage adviser may have talked to you about life or mortgage insurance.
But do you know the difference between them? Here we take a look at these two types of cover, and how each can benefit you and your family.
MORTGAGE INSURANCE
Depending on the policy (some will cover you for mortgage repayments if you are off work ill or injured as well), you might find that this type of cover only pays off your mortgage in the event of your death.
The payment will go straight to the lender, rather than to any loved ones. This means that, at the very least, your family will have a freehold house they can live in – and possibly sell to downsize and free up some capital. Mortgage insurance, however, doesn’t usually give your loved ones any additional funds for other needs.
LIFE INSURANCE
Unlike mortgage insurance, life insurance is not linked to your mortgage. The money either gets paid out to the policy owner or into the insured’s estate – meaning it can be used for whatever the beneficiary (receiver of the money) decides they want to use it for.
Another feature of life insurance is that you can have as much cover as you can either afford or demonstrate you have the need for. This means that not only can you make provision for the mortgage to be paid off, you can also include some additional funds to cover funeral costs, other debts or childcare or education costs.
Poll: Do you think banning gang patches is reasonable?
With the government cracking down on gangs, it is now illegal for gang members to display their insignia in public places whether through clothing or their property.
This means arrests can be made if these patches are worn in places like restaurants, shops, on public transport or ferries, and on airplanes. Arrests were made recently at a funeral.
Do you think this ban is reasonable?
-
77.3% Yes
-
21.8% No
-
0.9% Other - I'll share below
What's your favourite recipe for courgettes?
Kia ora neighbours. If you've got a family recipe for courgettes, we'd love to see it and maybe publish it in our magazine. Send your recipe to mailbox@nzgardener.co.nz, and if we use it in the mag, you will receive a free copy of our January 2025 issue.
Think You’ve Got the Answer? Today’s Riddle Says ‘Prove It’!
If eleven plus two equals one, what does nine plus five equal?
Do you think you know the answer to our daily riddle? Don't spoil it for your neighbours! Simply 'Like' this post and we'll post the answer in the comments below at 2pm.
Want to stop seeing riddles in your newsfeed?
Head here and hover on the Following button on the top right of the page (and it will show Unfollow) and then click it. If it is giving you the option to Follow, then you've successfully unfollowed the Riddles page.
Loading…
