Purchasing a home is a long term commitment – and an exciting one. When you get your keys to your new home, you’re probably not even thinking about mortgage payments. After all, you’ve already done the hard work, so there’s no way you’re going to default on them, right?
But what if something were to happen to you? Perhaps you have an accident and can’t work for a few months. Or get a serious illness, or worse.
This is where life insurance can be a sensible purchase. It ensures that your family is protected and your mortgage repayments are taken care of in a worst-case scenario.
If you’ve got a good mortgage repayment rate or are comparing home loans, good work! You’re obviously a conscientious and astute home buyer.
So given how conscientious you are about your home loan, perhaps it’s time to consider smart ways to protect your family – and your home – in the event of illness, injury or worse.
Buying a home is the biggest purchase you’ll ever make and mortgage repayments take up a large amount of your income. It’s why it’s important to calculate what would happen if you could no longer rely on your paycheck.
This is where the Life Insurance Comparison team put in the hard yards to find the right cover for you.
What’s the difference between life insurance and mortgage protection?
Most mortgage protection policies will cover your home loan repayments in the event of illness, injury, death or unemployment.
That’s useful, but there are still other bills left on the table which need to be paid. This is where life insurance may be a better option. It does the same thing but offers you more.
It isn’t directly linked to your home loan and offers protection beyond mortgage repayments if you’re unable to work through illness or injury, even for a short time, or pass away.
How much does life insurance cost?
Everybody will have different needs and, naturally, different costs but there’s a number of factors that can affect your premium, including age, your medical history, your job and if you smoke.
That said, the relevant life cover can be surprisingly affordable. If your premium is at the lower end of the scale, it’s equivalent to the cost of one family takeaway meal per week.
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.com.au's online quote comparison tool makes it easy to get quotes from 9 Australia's biggest life insurers
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.