It’s likely that buying your first house will be your first big financial commitment. You may have never considered life, health or income insurance before. But having clawed up onto the first rung of homeownership you will likely want to make sure you stay there. Especially as it’s harder to get into that first home than previously. Adulting just got real. It’s exciting and also a bit scary; let’s hold hands and jump into the slightly morbid topic of life, health, and income insurance.
If you haven’t been thinking about those things, you probably will be now after reading that list. Sorry, not sorry!
We encourage clients who are interested in cover to make contact with an insurance broker early on in the mortgage approval process. A good insurance strategy can help secure a mortgage; if you have income protection in place before you apply for a loan, you are able to demonstrate to the lender that you will be able to make the repayments even if you are unable to work due to illness or injury. It also helps a bank meet its obligations under the CCCFA (Consumer Credit Acts), making you more attractive to a lender. And having cover in place before settling lets you sleep easy from that first night in your new home.
Given all the above, it’s not surprising that many mortgage brokers are also insurance brokers. But we believe a broker should stick to one thing and do it well, especially with the complexity and ever-changing policies and parameters of both mortgages and insurance. As such our mortgage brokers don’t do insurance, they are too busy focusing on being mortgage gurus. Instead, we have our own expert Korinne Ellis to help our clients with their insurance cover.
Going to an insurance broker rather than directly to an insurance provider means the focus is on finding the best solution for you, rather than just being sold products from a particular company. And as our insurance broker Korinne says, “Sometimes the best advice I can give is for a client not to do anything at all, and that's great, right?!”
A good insurance broker is solutions focused. What's most important to you and your family should always come first. They should take the time to get to know you and your situation, in a way and at a time that works for you. The solution should be tailored to you, and be affordable and feasible long term. This means adapting that policy through every age and stage, to keep you insured and to keep it affordable (we all know premiums increase with age). A broker should be confident enough in their process to be able to front up at claim time, knowing they can get you the outcome that you need because they've done the research for you.
A good relationship with a broker will include regular reviews because insurance is dynamic. It's not a set-and-forget product; often less cover is required over time.
At the end of the day, the question of what insurance to have, and how much cover to get is incredibly personal and can only be decided by you. Brokers are there to give you options and advice but it comes down to what you want to do. A good broker won’t try to talk you into anything, but rather talk you through the process and make sure you are well informed when making your decisions.
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