When you take out a mortgage on a property or a car, you were offered it because the bank thought you will be able to pay back the money plus any incurred interests.

But have you ever wondered what it would be like if you suddenly lost your job, or maybe your income experienced a dramatic drop due to injuries and other personal matters?

How will you be able to pay back the bank?

Very likely the bank will call in a liquidator to take away your assets and even home. After finding the house and land of your dreams, it would be devastating to lose it all the bank.

By getting Mortgage Insurance, you will be automatically covered for missed payments for up to 30 days due to injuries, unemployment and others of such nature. It can either be public or private. Getting Mortgage Insurance is not compulsory by law but is often recommended in order to lower the risks of not being able to pay back the loan.

It can cover mortgage payments between one to five years, and sometimes more. The insurance will only commence if you are unable to pay back your owed money. It should be noted that you will, however, not be able to be covered for long term injuries or sickness that will permanently stop you from working. At such cases, maybe it would be reasonable then to withdraw your mortgage and change your lifestyle.

The cost of a Mortgage Insurance policy is usually based on a percentage of your loan, but this may differ between companies. You will be able to find out more by looking under the Personal Insurance or the Income Protection section of an insurance company.

Before applying to an insurer, make sure you have read thoroughly through the Terms and Conditions, and Product of Disclosure. Because finance is a complex issue, many companies will have different rules regarding what type of a coverage comprehensive insurance will offer.

Insurance Companies For Mortgage

Here is a list of all (but not limited to) the insurance companies that offer Mortgage insurance plans, packages, premiums and/or services.

APIA Mortgage Insurance APIA, like most other insurance companies, has a very difficult fine print, Terms and Conditions, and policy to understand. For example, it is written that damages from water are covered, including sinks ...

NAB Mortgage Insurance NAB is a reliable and trustworthy insurance company that has a good reputation in Australia. Many discounts and bonuses can be offered to customers in ways such as buying policies ...