Mortgage Protection

  
Buying a home is a major step I life. The last thing you want to see is your home slip out of your hands, if for some reason you can’t meet your loan repayments.
 Do you already have an existing home loan? Or are you planning to apply for one in the near future? If you are, then take a few seconds to ask yourself the following important questions:
Would you have enough money in reserve to meet your home loan repayments if serious illness or disability
stopped you from working, either temporarily or permanently?
 If you died, would you leave behind enough resources to pay off your home loan, and safeguard your dependants’ future?
If you answered ‘no’ to either of these questions, then you should seriously consider taking a Freehold Mortgage Protection Plan.
 
How does the Freehold Mortgage Protection Plan work?
 There are 2 types of cover:
 
· Life Cover

· Disability Income Benefit and Waiver of Premium Benefit
 
To take out a Freehold Mortgage Protection plan, you must have Life Cover, and you can choose to include either or both of the other options. Here’s how they work:
Life Cover
With Life Cover, if you die before your home loan is paid off, then the Freehold Mortgage Protection Plan will pay you or the lending institution a lump sum to cover your outstanding loan balance. That way, you won’t leave your family or loved ones homeless, even though you’re no longer there to provide for them.
Initially, the insurance will cover you for your home loan’s opening balance. Then, after 5 years (and every 5 years thereafter) your total cover can be adjusted to reflect your actual loan balance.
Naturally, your premiums will reflect any change in cover, so you won’t be paying for more than you need. 

Disability Income Benefit
With a Disability Income Benefit, if you are totally disabled for longer than 4 weeks because of illness or injury, the Freehold Mortgage Protection Plan will pay the policy owner an ongoing benefit. That way, you can take care of your loan repayments – even though you’re unable to work.
What’s more, under the Waiver of Premium benefit, while yours receiving benefit payments, you won’t have to make your regular insurance premium payments.
The amount of Disability Income Benefit you have will normally equal the amount of your monthly mortgage payments. This benefit will continue for as long as you are totally disabled.
All applications for Disability Income Benefit are subject to individual consideration.