Do I need mortgage protection insurance?

Short answer: Not mandatory but sensible for single incomes or dependents. Compare to life and income insurance. Read exclusions.

What this actually means in plain English

It pays your mortgage if you lose your job, get sick, or die. It is not mandatory but it is sensible if you have dependents or a single income. Compare it to life insurance and income protection — they might cover the same thing cheaper. Read the exclusions carefully. Some policies do not cover redundancy.

Key Facts

Covers mortgage payments if job loss, illness, or death
Not mandatory in New Zealand
Compare with standalone life and income protection
Some policies exclude redundancy
Premium increases with age
Shop around — bank policies are not always cheapest

Example

Monthly Premium: $80

Coverage: Mortgage payments if unable to work

Alternative: Life insurance $50 + income protection $60

Comparison: Bundled may be cheaper or more expensive

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