Can Life Insurance Cover
Mortgage Repayments

Imagine you've put in endless efforts to acquire your dream home. But what if an unexpected injury or illness prevents you from working? Would you be able to meet your mortgage payments?

According to a government report from the Australian Institute of Health and Welfare, accidents rank among the leading causes of death for individuals aged 1-44, while cancer remains a significant cause of death for those aged 45-74. Whether it's an accident or a battle with cancer, your focus should be on recovering your health, not worrying about finances or mortgage obligations. The report also highlights that over a third (35%) of Australian households have a mortgage, underscoring the importance of having a safety net in place to protect against unforeseen circumstances.

Further research reveals that each year, 30-37% of Australians aged 18-69 have taken out life insurance products like Income Protection to alleviate the stress of mortgage repayments.

How you can cover your mortgage with Income Protection

Income Protection insurance can serve as an alternative income source if you find yourself temporarily unable to work due to an illness or injury that has resulted in Total or Partial Disability.
This could happen if, for example, you injure your back while doing household chores, experience a heart attack, or suffer a broken leg in an accident.

By receiving monthly payments, up to 70% of your income, for a specified period, you can maintain your household's financial stability and provide for your loved ones while you recover. The insurance provides monthly instalments that can help cover your mortgage, allowing you to concentrate on your recovery without the added stress of financial obligations.

How you can cover your mortgage with Trauma (Critical Illness)

Trauma Insurance provides coverage in case you experience a severe illness or injury that requires extensive medical treatment to recover.

Similar to TPD, this type of insurance may provide you with a lump sum payment, which can be incredibly helpful during challenging times, where you can use the payout to cover your medical expenses or rehabilitation needs.

When you need time off work to focus on your recovery, it's crucial to prioritise getting back on your feet. This might involve reducing your work hours or taking an extended leave. With Trauma Insurance, you can have peace of mind knowing that you'll receive a lump sum payment that can be used for your mortgage repayments while you concentrate on your recovery.

How you can cover your mortgage with Total and Permanent Disability (TPD)

If you become permanently disabled due to an accident or illness and are unable to work, TPD insurance offers a lump sum payment to support you.

This payment can be used for medical treatments, rehabilitation, and even to pay off your mortgage. By receiving this lump sum, you can ease the financial burden that comes with losing your regular income and focus on prioritising your health.

Unexpected illnesses or injuries often result in time off work, and if this extends beyond sick leave, it can leave you and your family financially strained. Having the right financial support ensures you can focus on recovery and provide peace of mind for your family's future.

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