Protecting Your Family Home with Westpac Mortgage Secure Insurance
A mortgage on the family home is the biggest debt most of us will ever have, and while you can tailor your repayments and your loan term, the reality is, that if everything goes to plan, you'll be paying off that mortgage well into your 50s and maybe even your 60s. So, what happens if things don't go to plan, and you are suddenly unable to provide for your family? Many people's contingency plan in this situation is to sell the house to help pay the bills and other costs, but what about when that money runs out – what have your family got left to sell? Not to mention that your family would be giving up the one piece of security and stability in an already stressful time, and losing their connection to a family home.
What are the Features and Benefits of Westpac Mortgage Protection Insurance?
When you take out a mortgage, you will likely pay mortgage insurance, however, this is to protect the lender if you default on the loan, to help your family to meet the mortgage repayments if you die, you will need to take out a separate product like Westpac mortgage secure. Westpac mortgage secure can offer:
- Up to $750,000 benefitWestpac will offer you coverage from $30,000, up to $750,000 to pay off your mortgage if you die or are diagnosed with a terminal illness where you are not expected to live for more than 12 months.
- Add a living benefitThere are more reasons than just death that can keep you from being able to meet your mortgage commitments, so you can also add a living benefit to Westpac mortgage secure, which pays a benefit for conditions such as: cancer, coronary artery bypass surgery, heart attack, stroke, paralysis, and loss of independent existence. You can choose for the living benefit to be 10%, 25% or 50% of the death benefit amount you have chosen. If you make a claim on your living benefit, your death benefit is reduced by the amount of your claim. For example, if you have a living benefit of $200,000 and you have a stroke, your death benefit will be reduced by $200,000. The living benefit will only be paid once for each person insured on the policy.
- Easy applicationYou don't have to undergo a medical exam or a blood test to apply for Westpac mortgage secure, or make any health declarations.
- Cover for investmentsYou can also take out a Westpac mortgage secure policy to protect the mortgage on an investment property, so that your family can continue to build financial security and independence.
How to Apply for Westpac Mortgage Secure Policy
To be eligible to apply for the Westpac mortgage secure policy, you must be 18 to 59 years old, and the coverage must be for a residential or investment property which is located within Australia. If you have an existing mortgage secure policy, you can apply to increase your death benefit to $750,000 or the balance of your Westpac loan, whichever is the lesser amount.
You can apply for mortgage secure as a joint policy, where up to two borrowers can be covered on the same policy, as long as the policy is protecting a property under a Westpac loan, and both people are listed as mortgagees. Each person can have a different level of cover, up to the lesser of $750,000 or the balance of the Westpac loan at the time you apply. For example, if you and your partner have a Westpac loan of $300,000, you can apply for a death benefit under the mortgage secure policy for $300,000, and your partner could apply for a death benefit of $200,000 and a living benefit of $100,000.
If you have more than one property under mortgage that you would like to protect, you can apply for multiple mortgage secure policies, as long as the total combined death benefit amount across all policies is not greater than $750,000 or the balance of the Westpac loans.
To apply for Westpac mortgage secure you need to work with your Westpac Home Finance Manager, or another Westpac representative to obtain a premium quote for your cover. If you are happy with the cost and the inclusions of the cover, complete the application form. You won't need to undergo a medical exam or blood test to apply for mortgage secure, as an exclusion applies for any pre existing condition that was present in the 10 years prior to your application.
Your home is one of your most important assets to your family, and one which requires the most significant financial commitment. Therefore, it makes sense that something so important in your life is protected with adequate insurance coverage.