Loan protection - why our clients need it
When it comes to property, we all know it’s a person’s biggest asset. Knowing how valuable property is, it’s always a surprising statistic that, according to ALI Group, only 4 per cent of families with dependent children have the recommended level of life cover.
That’s where protection plans comes in. With the vast majority of people taking out a substantial loan to purchase their property, there are options available to our customers to protect themselves in the event their situation changes and they are unable to meet their mortgage repayments in the future.
Here are three of the options available to our customers.
With a lot of mortgages spread across a 30 year term, it’s just about impossible to predict how life will change in that period of time. Having a loan protection plan means that our clients are covered if down the track they lose their job, suffer a serious illness or injury, or if the mortgage holder passes away suddenly.
Imagine if our clients were unable to work for six months. How would they make their home loan repayments? An income protection plan can give our customers peace of mind that they are protected if they can’t work and the great news is, it not only covers their income, it can cover their mortgage repayments too.
Home and contents
This is the insurance that’s probably the most well know and is fairly common with our customers. Home and Contents insurance covers our customer’s homes in the event of loss or damage caused by: fire or explosion, lightning or thunderbolt, earthquake or tsunami, malicious acts, theft, storm, rain or flood.
At Loan Market, we offer the clients we work with loan protection options not only because it’s our duty of care to lend responsibly, but also because we care about our customers beyond finalising their loan.