Why Consider Having Loan Protection Insurance?

Oct 15, 2021 | Finance, Property Investing, Purchasing Property

Life can be unexpected in so many ways. Bad things can happen to good people. When life is cruising along nicely, it can be all too easy to forget these things. Why do most of us insure our cars, our home, and other properties? We protect ourselves against loss, from theft, natural disasters, and unexpected medical bills, but we don’t protect the biggest expense of all: our ability to make mortgage repayments.

Loan Protection Insurance is designed to prevent this horrific scenario from happening to you and your family. It takes the financial and emotional stress out of paying off your home, with cover to help meet your loan obligations in the case of serious illness, involuntary unemployment, terminal illness, or death.

Is your household reliant on a single income? If you or your partner lost your job tomorrow, or are unable to work, how long are you able to cover the mortgage repayments?

Protect yourself against the financial stress of home loan repayments should you become unable to work with Loan Protection Insurance. There are three types of benefits that could protect you and your property in a wide range of critical life events across three areas:

  • Trauma benefits – Financial support during a time of medical crisis. Pays a benefit on diagnoses like neurological conditions, cancers and tumours conditions, heart conditions, and other serious conditions.
  • Death and Terminal Illness benefit – Pays a benefit if you die or are diagnosed with a terminal illness (min. $100,000 and max. $1,000,000). This benefit provides a Funeral Advancement payment – a $10,000 advancement of the Death Benefit. These funds can be used to help with urgent expenses while a claim is being assessed
  • Specified Injury Benefit – Financial assistance while you’re on the mend. Pays a benefit (maximum $7,500) if you suffer a fracture of your skull, arm, leg, or any part of your body.

It’s safe to assume that our standard of living, health, and family are important to us. However, there are certain events, such as serious illness or injury, which can put your home, lifestyle, and future plans at risk. What’s your backup plan? If you haven’t got a clear plan, you’re not alone. To work out how much income protection you need, and to know some of the things you’ll need to consider when choosing loan protection insurance, visit to learn more of the benefits you deserve.

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