Loan Protection like any insurance is generally a begrudge buy. No one wants to think about something bad happening to their loved ones or themselves. The unfortunate part about life is that the unexpected happens to someone every single day.
“With a background in Insurance I am very aware of the real life tragedies that happen and how devastating it can be to families not only emotionally but also financially. It seems strange to me that people get insurance for their cars, for their contents and homes but not for themselves. It’s my duty of care to make sure you realise how such a simple decision now can change the outcome of your future should anything happen.”
Brooke Smith - Mortgage Broker
Most people think they are covered adequately through their super, unfortunately chances are that you’re not. Claims paid through super take on average 12 months to come through - loan protection takes roughly a week.
‘It's estimated that life cover within super is on average only 20% of what is needed. The average insurance amount payable from super is $70,000 - for those who take the default cover.’
*Rice Walker Actuaries, Analysis of Insurance Needs, May 2005.
The difference with Loan Protection is that it safeguards your home or investment by meeting your mortgage repayments in the event of illness, injury, death or involuntary unemployment. Although Loan Protection is completed at the time of your loan, is not actually linked. Therefore, if you have a claim paid out you can use the funds however you like.