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Does Passive Income Negate The Need For Mortgage Cover?
Firstly you need to understand the reason people have mortgage cover – to ensure that the mortgage commitments are met while you (the insured) is unable to meet those commitments. This could be due to your inability to earn income from either a disability or death.
Does Everyone Need Mortgage Protection Insurance?
The simple answer is “NO”
You need to ensure that the income you generate does not need your personal exertion.
That is passive income.
As mentioned above, the reason that you would have mortgage cover is to ensure that you can make your mortgage repayments if your income stops so having passive income that continues means your income does not stop
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