Income Protection: The Cover Most Mortgage Owners Overlook

You insure your house. You insure your car.

But have you insured the one thing that pays for both – your income?

For most mortgage owners, income is the engine behind everything – repayments, groceries, school fees, insurance, investments. If that engine stops, even temporarily, the pressure builds quickly.

Income protection is designed to replace a portion of your income if illness or injury prevents you from working. It’s not dramatic. It’s practical. And for many households, it’s the difference between stability and stress.

Why It Matters More Than You Think

A mortgage is typically your largest financial commitment.

If you were unable to work for three to six months:

• The bank still expects repayments.
• Rent (if applicable) still needs to be paid.
• Utilities, food, fuel and insurance continue.
• Family expenses don’t pause.

ACC may cover accident-related injuries. But it does not cover illness. Many extended absences from work are illness-related – cancer, surgery recovery, mental health, chronic conditions.

Income protection provides structured monthly payments to help you continue meeting financial obligations while you recover.

It protects your lifestyle – and your long-term plans.

Why Most People Don’t Have It

Despite its importance, income protection is one of the most under-utilised forms of cover.“It Won’t Happen to Me”

1. “It Won’t Happen to Me”

Most people underestimate the likelihood of being unable to work temporarily.“ACC Will Cover Me”

2. “ACC Will Cover Me”

ACC applies to accidents. It does not cover illness.

3. “It’s Too Expensive”

When structured properly, cover can be tailored to suit your cashflow.

4. “I’ll Just Use Savings”

Savings are important but how long would they realistically last if your income stopped?

The Real Risk Isn’t Death – It’s Disruption

Life insurance protects your family if you pass away.

Income protection protects your family while you’re still here but temporarily unable to earn.

A few months off work can:

• Disrupt financial momentum
• Increase debt
• Force asset sales
• Add stress during recovery

Income protection is about financial continuity.

Why Mortgage Owners Should Pay Attention

If you have a mortgage, you have leverage.

Leverage works well when income is steady.
It becomes a risk when income stops.

Income protection supports your repayment ability and protects your credit position. It ensures a temporary setback doesn’t become a long-term financial problem.

Final Thought

If you couldn’t work for six months:

• Would your mortgage still be covered?
• Would your household run smoothly?
• Would you feel financially secure while recovering?

If you’re not sure, it’s worth reviewing.

Reach out for a confidential chat and make sure your incomeis protected before life throws you a curveball.

And watch the video from our insurance adviser, Royce Pritchard, where he explains what income protection really covers and why most people are more exposed than they think.