What is Loan Protection Insurance?
Loan Protection Insurance takes the financial and emotional stress out of paying off your home, with cover to help you meet your loan obligations in the case of a serious illness, involuntary unemployment, terminal illness or death.
Who should consider it?
If you have a mortgage, you should consider whether taking out Loan Protection Insurance is right for you. It will ensure your family is not burdened with paying off the mortgage if you are diagnosed with a serious illness, become unemployed, terminally ill or pass away.
It can be particularly helpful if:
- You don’t have Income Protection Insurance, or your monthly Income Protection benefit amount wouldn’t be enough to cover your mortgage and living costs.
- You don’t have life insurance, or your benefit wouldn’t be enough to cover your loan.
How it works
This product works in two ways depending on what part of the policy terms you meet. It can;
- Help you with your mortgage repayments, if you are diagnosed with a serious illness, injured, involuntarily unemployed or made redundant; or
- Can pay off your loan, if you were to pass away or be diagnosed with a terminal illness.
Essentially, Loan Protection Insurance can ensure your family are not financially burdened by repaying the loan or help you get back on your feet by looking after your mortgage repayments.
How is it different from Life Insurance?
Loan Protection Insurance is designed to cover your mortgage therefore the level of cover will be in line with your mortgage. This means you can have Loan Protection Insurance to cover your mortgage plus other insurance products such as life insurance inside super to cover your families long term financial needs.
This website contains general information only, which does not take into account your personal financial situation, objectives or needs. Before deciding whether to acquire, or continuing to hold, any of our products, please seek appropriate independent financial advice to assess whether it is suitable for you. You should also consider the relevant Product Disclosure Statement, available upon request by calling 1300 555 625, before making any decision. Life insurance products are issued by MetLife Insurance Limited ABN 75 004 274 882, AFSL 238096.