5 home loan protection insurance FAQs answered

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Heard of home loan protection insurance, but you're not sure what it's about? No problem! We're here to help.

Sponsored by Zurich. With home loan protection, you're able to ensure that you cover your mortgage if something unexpected happens to you. To find out more about home loan protection, visit the Zurich website today.

With Zurich's new home loan protection insurance launching this month, we've answered some of the most common questions about what home loan protection is and how it can work for you.

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What situations does home loan protection cover?

Zurich is designed to help you pay your mortgage in a range of unexpected events, including:

  • Death or Terminal Illness
  • Illness or injury
  • Involuntary unemployment

Accordingly, there are three types of cover available from Zurich:

  • Life Cover only
  • Illness and Injury and Involuntary Unemployment, or
  • Full Protection which combines both of these

You can use Zurich's home loan protection in addition to home insurance or income protection policies (more on that in a moment). This way, you've got cover across a broader range of circumstances.

Protect your mortgage with Zurich


What amount does home loan protection cover?

A home loan protection policy from Zurich allows for cover of up to $1 million.

The level of cover is aligned to the balance of your mortgage meaning as you pay off your mortgage, your monthly premium can decrease.


How is my premium determined?

Three main factors influence the cost of your premium with Zurich: your age, how much you owe on your loan and the type of cover you want.

With this in mind, Zurich uses Open Banking to capture loan details and keep loan balance and repayment amounts aligned to the loan.

Through Open Banking, Zurich collects your loan balance and loan repayment amount to calculate your month-to-month premium.


Does it cover everyone who's named on the home loan?

Zurich allows you to have up to two policies per loan, but only one policy per customer.

Benefits are paid to the 2nd policyholder or estate in the event of death. All other benefits will be paid directly to the policyholder.


How is it different from home insurance or income protection insurance?

Home loan protection is very different from home insurance, income protection and traditional life insurance.

It doesn't cover your actual house or belongings. Only home insurance can protect the home from damage like fires.

The benefits align to your loan repayment, not your income.

Depending on the cover you select, the payments will change. In the event of death or terminal illness, a lump sum is paid, or in the event of illness or injury or involuntary unemployment, you will receive a monthly benefit as described in the policy.

With a home loan protection policy from Zurich, any benefits are paid directly to you or in the event of death to anyone who has a policy on the same loan or your estate.

So you're able to use the funds the way you want. That might be the mortgage, but it may well be other costs that have arisen, like medical expenses.


Stress less about your mortgage with Zurich Home Loan Protection

Sponsored by Zurich. With home loan protection, you're able to ensure that the family home is protected if something happens to you. To find out more about home loan protection, visit the Zurich website today.

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Zurich Home Loan Protection is issued by Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 (Zurich). This information does not take into account your personal objectives, financial situation or needs. You should consider these factors and the appropriateness of the information to you. Consider seeking advice specific to your individual circumstances from an appropriate professional. You should also consider the Product Disclosure Statement (PDS) available at www.zurich.com.au in deciding whether to acquire or to continue to hold the product. Furthermore, this product has been designed to meet certain objectives, financial situations and needs, which are described in its Target Market Determination available on our website. More info.

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