At Reduce Home Loans, we believe in providing our valued customers with everything they need for a Home Loan, which is why we have formed alliances with some of the biggest and best Insurance companies in Australia.
Mortgage Protection Insurance
The best investment plan in the world can fall over if it doesn’t have a solid foundation. That is why it’s important to balance your wealth creation with wealth protection.
Protecting your income should be your highest financial priority. If you had a machine printing money in your house, you would insure it right? Well, you are that machine!
Taking on a mortgage now depends on your income to meet the loan repayments. Ensure you have appropriate mortgage protection insurance, so if you suffer from sickness or injury you can lose the debt and not your asset. The machine continues to print money with appropriate protection.
In protecting your new mortgage and ensuring you can lose the debt, please see below a quick guide to insurance options:
| Income Protection | Trauma | Total & Permanent Disability | Life Cover | |
| What is it? | Payable if you are unable to work at full capacity or at all, due to sickness or injury | Payable upon diagnoses of a specified medical condition | Payable where you are unable to ever work again due to sickness or injury | Payable upon death / terminal illness |
| Payment type | Monthly replacement income & Lump Sum | Lump Sum | Lump Sum | Lump Sum |
| When do you need it? | If you have debt (mortgage), need regular income to support your lifestyle and / or have dependants. | If you have debt and want the security of a lump sum payment when suffering from a specific medical condition | If you have debt / dependants / require cash flow to support future lifestyle | If you have debt and /or dependants |
| Ownership | Personal or Super | Personal | Personal or Super | Personal or Super |
Insurance is personal and needs to be tailored to meet your specific circumstances. In taking on debt, it is our duty of care to ensure you have the chance to secure the protection you need. We will have an insurance specialist contact you to facilitate or simply register by clicking ‘Apply Now’.
Reviewing your insurance requirements
Insurance cover should be regularly reviewed to ensure it continues to be adequate for your needs. Underinsurance can present a serious problem.
Changes in personal circumstances can often necessitate an immediate need for insurance. The following triggers create the immediate need to secure advice and protection:
- Buying a house: you now have a debt that requires surety of income to pay for the loan. A mortgage is the single biggest trigger for insurance.
- Having children: Children are dependants, and require income to meet a standard of living. Protecting this income is critical.
- Change in employment / increase in pay: securing your income is important. This is even more important when your income increases. Generally, your living standards increase and this comes with a greater reliance on income.
In Australia, most people don’t have enough insurance. This may be due to being uncomfortable thinking about the possibility of an early death or disability or that they simply think it won’t happen to them.
Statistically, we all have a 1 in 3 chance of suffering a major medical illness between the ages of 30 and 64.
A good investment pays you most when you need it most. Mortgage protection insurance through income protection is a good investment.
It’s like a parachute. If you don’t have it when you need it most, it’s too late.
Register today to ensure you are not too late. A specialist insurance adviser will contact you to discuss your needs.
