General

September 26, 2016

I’ve been offered loan protection cover by my bank, is this a good way to go?

Mortgage protection insurance can also protect you when you lose your job, as it’s designed to kick in to cover you against any mishaps that may affect your ability to make loan repayments. If you lose your job, fall ill or even die, mortgage protection insurance will cover your mortgage repayments for a certain period of time to help either you or your family regain control of your finances. Unlike income protection insurance, mortgage protection is only designed to cover your mortgage repayments—not to act as a steady stream of income. Other factors can drive the price of your policy up, such as pre-existing medical conditions, your lifestyle habits, such as smoking, your age and gender. It can be difficult to prove that your loss of job was through no fault of your own. A number of benefits and exclusions apply to each different type of policy, so before you […]

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September 26, 2016

If I refinance my loan to another lender, does my insurance cover stop?

Lender’s mortgage insurance (LMI) protects the lender in the event that you default on your loan and the balance of your loan is greater than what they receive from selling the property. Typically it applies if you borrow over 80 percent of the purchase price but can, depending on the property and borrower, be as low as 70 percent. Premiums can be up to 2 percent of the loan amount. Refinance your loan and not only is their no refund on the premium, regardless of how soon you refinance, you will have to pay it again if you’re loan is over 80 percent of the value of your home.

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September 26, 2016

Can I get a policy that covers me if I’m made redundant?

Most Income Protection Policies in Australia do not offer cover for involuntary redundancy. However, the increasing competition among many of Australia’s insurance brands has lead to the arrival of some general insurance products that offer a limited range of protection against: Redundancy Loss of job. There are a number of general insurance companies within Australia that have just introduced income cover with a feature of involuntary redundancy cover for a period of up to 3 months, which also serves as a protection plan to cover your bills for a specified period.

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September 26, 2016

Does income protection cover me if I’m made redundant?

Income Protection in Australia provides cover if – and only if – you are unable to work because of a serious illness or injury. Income Protection does not include redundancy cover. Nor will you be covered if you are fired or if for some reason you have to leave work voluntarily.

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