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5 mortgage protection myths debunked

5 mortgage protection myths debunked

1. “It’s too expensive.”

When you have “necessities” to consider like car payments, bills and mortgage repayments, it can be hard to think about paying more for insurance when money is tight. However, mortgage protection insurance can be affordable. It also pays to think ahead and consider what would you do, should an unfortunate injury/illness occur.

Instead of assuming it’s too expensive, try it out for yourself. Talk to your local mortgage broker or request a loan protection quote here.

2. “I’m young and healthy – I don’t need to worry about that right now.”

You won’t be young forever, and insurances are typically cheaper for people in their 20’s. Pre-Existing Conditions excludes claims for medical conditions that existed prior to a policy starting. Therefore, the best time to get cover is when you are young, fit and healthy... before the presence of any illnesses or medical conditions.

3. "I don’t have any dependants.”

While you might not have children, which what is most often considered as a dependant, it’s important to think of anyone else who would struggle financially in the event of your sudden passing, for example, a spouse, partner and even parents.

4. “What do I care? I’m dead.”

This statement ignores the fact that the Death Benefit of the mortgage protection insurance policy could ease the financial burden for your family should something happen to you. This will give your family the time they need to grieve without having to worry about how they will meet the loan prepayments, cover your funeral expenses or replace your salary.

5. “I’m covered through my super.”

Coverage through super is a good start, but you may not have a trauma component as superannuation funds have not offered trauma cover to new members since July 20141.

Here at ALI Group, we offer a comprehensive Loan Protection Plan. With one policy, we’ll provide you with three types of benefits, providing financial support in the case of serious illness or injury, involuntary unemployment and death or terminal illness. For more about our policy, please speak to your closest mortgage broker today!


1 If your superannuation trauma cover commenced before 1 July 2014; You may be exempt from the changes and still entitled to trauma cover through your super fund. If you have rolled over your cover or your fund has been updated, you may lose the exemption. Check with your existing superannuation insurance provider if you're unsure.

Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.

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