Loan insurance and mortgage protection is designed to help you, and your family will keep up to date with your loan payments when life events arise unexpectedly and regardless of extenuating circumstances. Simply put, mortgages or loans are often long-term commitments, so it makes sense to protect them.
Do you think of the unexpected?
There are a number of reasons why even the most responsible portfolio managers can experience financial difficulties. Any of the following reasons can arise at any time and will leave you struggling to repay your loan:
>> Change in health – due to illness, injury or illness
>> Loss of income – due to involuntary unemployment, or
>> Death and terminal illness – when cancer, stroke or heart attack, etc. can occur.
Loan Insurance and Mortgage Protection – The Benefits
Having a loan and mortgage insurance plan offers a number of advantages, including:
>> Premiums are fully tax deductible
>> Financial protection (you will save your family the worry of loss of income)
>> You’ll save at tax time (you’ll get more money on your tax return, which means more money in your pocket)
>> You can choose how long you want to receive cover benefits if you are injured and unable to work
>> Total and permanent disability benefit payments
>> A benefit amount (e.g. cash in hospital) can be calculated for each night spent in hospital
>> Associated accident costs can be provided to cover incidental costs (eg counseling and rehabilitation).
Common questions about loan and mortgage insurance
Is mortgage lender insurance (LMI) different from loan and mortgage insurance?
>> LMI – is mandatory and covers lenders / credit grantors if they lend you 80% or more
>> Loan and mortgage insurance – covers your mortgage payments in the event of death, illness, unemployment or disability
Does unemployment benefit apply if I am self-employed?
Yes. You can make a complaint if:
>> You worked in your company (on average 20 hours per week) for 180 days immediately before becoming unemployed, or
>> Your company has definitely ceased operations
What happens to my policy if my unemployment claim is accepted?
Your coverage continues in the event of death or terminal illness after successfully applying for unemployment, and your premium and benefits will remain the same.
Who will be the beneficiaries?
>> For a single life insurance contract, the benefit will be paid to the contract holder or to his estate, and
>> In the case of a joint policy, benefits are paid to the joint policyholders or to the surviving owner in the case of the death benefit
What if i need to make a claim and i have other insurance policies?
Upon acceptance of your claim, the loan or mortgage protection policy will pay you a lump sum benefit directly to you or to your estate, in addition to any other payments you may receive from other insurance policies.
What if I am a smoker now, will my premium change if I quit?
>> Yes. Your premium can be changed to a non-smoking rate if you stop smoking for 12 consecutive months, and
>> You will have to declare that you have not smoked any substance during this period
So, now that you know how “loan and mortgage insurance” can protect you and your family from any unforeseen event in life, contact an insurance broker. They will understand your situation and offer you the best possible insurance policy.
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