Loans
Why have Loan Protection Insurance?
Most people need financial protection. In the event of that unforseen accident / situation arising, how would you cope? What would likely happen?
No Protection can be the cause of:
- Your Credit Rating Suffering, because the repayments are not met
- Any holiday time and pay saved quickly disappears, along with sick time available
- Any savings are eaten away, as the bills continue while the income does not.
Loan Protection Insurance assists in maintaining your financial position and Credit Rating.
Loan Protection Insurance should be discussed by the lender and yourself every time you take out a loan.
No one knows what can happen in life, But you can protect you and your family if something goes wrong.
Loan Protection Insurance Features
What does Loan Protection Insurance cover?
There are 4 areas of cover offered under Loan Protection Insurance:
- Life Insurance
- Disability, Sickness, Accident and Hospitalisation Insurance
- Involuntary Unemployment Insurance.
- Cash Assist due to covered Trauma Insurance.
These 4 in some cases can not be taken individually, and may only be taken with one other cover.
You will also need to check that you meet the underwritting criteria of the insurance company offering the Loan Protection Insurance cover, as guidelines will vary with different insurance companies.
Life Insurance Cover
Benefits of Life Insurance Cover
Life Insurance will cover the outstanding balance of your loan as at the date of your death. Most insurance companies will cap the amount at around $100,000.
Sickness, Hospitalisation and Disablement Cover
Benefits of Sickness and Disability Cover
Sickness and Disability Insurance will cover the regular monthly repayment of your loan by the insurance company, excluding the first 14 days, while you are totally and continuously unable due to sickness or injury to perform the duties of your usual occupation for which you are reasonably qualified by education, training or experience.
The insurance company will also pay the regular monthly repayment, excluding the first 5 days, while you are Hospitalised due to illness or injury, other than mental illness or injury.
Involuntary Unemployment Cover
Benefits of Involuntary Unemployment Cover
Involuntary Unemployment Insurance will cover the regular monthly repayment excluding the first 21 days, of unemployment after termination from permanent and gainful employment not by your choice, retirement or wilful misconduct and being certified as unemployed by Centrelink.
Cash Assist or Trauma Cover
Benefits of Cash Assist or Trauma Cover
Cash Assist due to covered Trauma Insurance will cover the outstanding balance of your loan as at the date you suffer a heart attack, coronary artery surgery, stroke or cancer.
Note:
These inclusions are a guide only to what to expect each insurance product covers.
You must read the PDS Product Disclosure Statement each insurance company issues to get a definitive list of inclusions, and exclusions, and make an informed decision after that.
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