Income/Mortgage protection insurance

Income protection and mortgage protection are types of insurance that provide financial protection in the event if you are unable to work or earn an income.

The purpose of income/mortgage protection insurance is to help you maintain your standard of living and meet your financial obligations, such as paying your mortgage, in the event that you are unable to work due to a covered event.

The insurance typically provides a replacement income as a regular payment, until you are able to return to work or until the policy term ends.

Income/mortgage protection insurance can be a valuable tool for managing financial risks and ensuring financial stability in the event of a covered event. It is particularly important for those who have dependents or who have financial obligations that they cannot meet if they are unable to work.

It is important to carefully consider your needs and budget when choosing an income/mortgage protection insurance plan, as coverage and costs can vary depending on the type of policy, your age and health and many other factors.

Do I need Income/Mortgage Protection Insurance?

People who have financial obligations, such as a mortgage or any other debts, may need this type of insurance to help maintain their standard of living and meet their financial obligations in the event that they are unable to work due to a covered event, such as an illness or injury.

People who have a higher likelihood of being unable to work due to an illness or injury, such as those in physically demanding jobs or who have pre-existing medical conditions, may also benefit from income/mortgage protection insurance.

Here are a number of reasons that you might consider having income/mortgage protection insurance:

Maintain the standard of living

Income/mortgage protection insurance provides a replacement income in the event that you are unable to work, allowing you and your family to maintain the standard of living and meet your financial obligations.

Cover mortgage payments

If you are unable to work, income/mortgage protection insurance can help you continue to make mortgage payments and avoid losing your home.

Provision for dependents

People who have dependents that rely on their income may need income/mortgage protection insurance to ensure that their family's financial needs are met in the event of a covered event.

Manage financial risks

Income/mortgage protection insurance helps you manage the financial risks associated with illness, injury or other covered events, ensuring financial stability and peace of mind.

Protect against unexpected events

No one knows what the future will bring, and income/mortgage protection insurance can provide peace of mind by protecting against unexpected events that could impact your ability to work or earn an income.

Overall, income/mortgage protection insurance can provide financial security and peace of mind for you and your family in the event of an unexpected event that results in a loss of income. Whether you are a young adult just starting out, a parent, or a homeowner, income/mortgage protection insurance can be tailored to meet your specific needs and budget.

Important information and disclaimer

  • Any advice on this publication is of a general nature only and has not been tailored to your specific circumstances. Before taking action on this information, please seek your personal advice. Past performance is not a reliable guide for future returns. The information on this page reflects our understanding of the existing legislation, standards, etc.

    In some cases, the information has been provided to us by third parties. While the information is believed to be accurate and reliable, but this is not guaranteed in any way.

  • Neither AIFP nor its responsible persons or employees give any warranty of accuracy, nor accept any responsibility for errors or omissions in the information provided on this page.