How would you or your family meet your loan repayments if you lost your jobs, suffered a serious illness or even passed away?
Would you use up your savings? Ask family or friends to help out? The grief experienced by family for loved ones suffering is often compounded by the costs associated with treatments forcing some to sell the family home to pay for extra time.
We take our responsibility as a mortgage broker very seriously. This extends beyond helping you find the right loan – we also want to make sure you understand how you should be protecting yourself so if something does happen, you can meet all of your financial obligations. Ask your TSC Mortgage broker for more information.
Frequently Asked Questions
Key protection products include: Life Insurance (pays out the loan on death), Total & Permanent Disability (TPD), Income Protection (replaces income if you can’t work), and Trauma/Critical Illness cover for serious medical events.
Income protection insurance pays up to 70% of your pre-tax income if you’re unable to work due to illness or injury. This ensures you can continue to meet mortgage repayments even if your income stops.
Life insurance pays a lump sum to your nominated beneficiaries upon death, which they can use however they choose including repaying the mortgage. Mortgage protection insurance specifically clears the outstanding mortgage balance on death.
Total and Permanent Disability (TPD) insurance pays a lump sum if you become permanently unable to work. This can be used to repay your mortgage, fund medical costs, and provide ongoing living expenses.
As a minimum, your life cover should equal your outstanding mortgage balance. Ideally, it should also cover future living expenses, children’s education, and other debts. A risk adviser can calculate the right amount.
Insurance inside super is paid from pre-tax super contributions, improving affordability. However, tax applies on payouts for non-dependents and payouts take longer. Outside super, proceeds are usually tax-free for nominated beneficiaries.
TSC refers clients to qualified risk advisers who assess your full financial obligations — including your mortgage — and recommend the right mix of life, TPD, income protection, and trauma cover from leading insurers.
