Home loan protection: What it is and how it works
Home loan protection offers a range of benefits to homeowners, particularly in the event of death, illness and injury or job loss.
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.
Zurich has recently launched a home loan protection product. So we're taking a closer look at how you could benefit from it.
What home loan protection covers
Home loan protection is designed to help you pay your mortgage in a range of unexpected events. Claims are paid directly to the policyholder or in the event of death paid to any policyholder linked to the loan.
Zurich Home loan protection offers three types of cover:
- Life Benefit - If you die or are diagnosed as terminally ill with less than 12 months to live only
- Illness or Injury and Involuntary Unemployment (including redundancy), or
- Full protection (all three cover options)
⚠️It's important to note – home loan protection is not the same as home insurance or income protection. It's also a bit distinct from traditional life insurance products.
- It doesn't cover individual household items or belongings, like home and contents insurance
- It's not paid out on an ongoing basis, like income protection. Benefits are paid for a set period of time.
Everyone's insurance needs are different – so it's worth consulting with a professional to see if you've got the right cover for your individual or family requirements.
Cover levels and premium costs
With Zurich, your mortgage can be insured for up to $1 million.
There are several factors that influence your premium:
- Your preferred cover type: Life, Illness and Injury and Involuntary Unemployment protection
- The balance owing on your mortgage (for life cover), or
- Your minimum loan repayment amount (for the other cover types), and
- Your age
With this in mind, Zurich uses Open Banking to capture loan details and keep the loan balance and repayment amount aligned to the loan.
Through Open Banking, Zurich collects your loan balance and loan repayment amount to calculate your month-to-month premium.
This means your premium could decrease over time as you pay off your mortgage.
🏠Homeowner tip! With Zurich home loan protection, a lump sum is paid directly to you or the 2nd policyholder or their estate, rather than the bank. This means you're able to decide how it's best spent. This might be paying off the mortgage – but it may also be to meet more immediate costs, such as medical expenses or home modifications.
Protect your home loan with Zurich
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.
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.
Image: @Nikodash via Canva.com