Adviser insight: Why you shouldn't duck the cover

Squirrel
7 January 2016
blog

When people come to us for mortgage advice, we know to tailor our services to your situation. Your financial situation is a snowflake - it's not going to be exactly the same as anyone else's, and your home loan needs to match that. 

These lifelong commitments need to be done right and make you happy. It's a bit like a marriage, really! And we certainly don't want your relationship with your mortgage to end in a nasty divorce. The same applies to your insurance.

Nicky Smit is an insurance adviser here at Squirrel, and she's passionate about making sure people get the cover that fits. So, let's get some of her insight into why tailored insurance is so important when you're getting a home loan.

Because you never know what's around the corner

It's impossible to predict when an accident or illness will befall you. If you could predict it, you'd be able to avoid it! Having insurance in place to help you out when these events do happen can really save you in the long term.

"We'll always insure our material possessions but not always ourselves, which can really hurt us," Nicky says. "You're more likely to be off work with an illness rather than an accident, and insurance keeps you protected when this happens."

When you can't work, you might not be able to make your mortgage repayments. This is where income protection can cover you, but there can be wait periods which leave people stranded without a source of income for weeks or months, depending on the seriousness of the situation. Nicky says trauma cover can be useful in this situation.

"We're living longer, which means the likelihood of getting cancer later in life is a reality for many," she says. "Trauma cover can pay for medical treatments, covering costs and letting you get back on your feet."

And for more all-encompassing cover, health insurance is vital. Nicky says people often rely on the public health system to get by, but when you're put out of work or otherwise incapacitated, health insurance can ensure the financial safety of your home and loved ones.

"People often don't see how important this is until after something big happens," she says.

We'll always insure our material possessions but not always ourselves, which can really hurt us.


The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Squirrel shall not be liable or responsible for any information, omissions, or errors present. Any commentary provided are the personal views of the author and are not necessarily representative of the views and opinions of Squirrel. We recommend seeking professional investment and/or mortgage advice before taking any action.

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