Do life insurance products cover mortgage payments?

You've worked tirelessly to own the home of your dreams. But if you suffered from an injury or illness that prevents you from working, would you be able to cover your mortgage repayments?

A government report by the Australian Institute of Health and Welfare found that accidents were one of the leading causes of death for people aged 1-44 and cancer remains one of the leading causes of death for people aged 45–74. 

Whether you’re involved in a car accident or suffer from cancer, you want to spend time focusing on getting back to health rather than worrying about finances or mortgage payments. The Australian Institute of Health and Welfare reports over a third (35%) of Australian households have a mortgage, so having a financial security blanket in place if the worst should happen has never been more important. 

How can Income Protection help cover my mortgage?

Income Protection can kick in as an alternative source of income if you're temporarily unable to work due to an illness or injury that has left you Totally Disabled or Partially Disabled.

That might be because you hurt your back while working around the house, you suffered a heart attack, or broke your leg in an accident, to name a few.

A monthly payment for a nominated period of time can help you keep your household up and running, and provide for your loved ones while you recover with up to 75% of your income.

If you’re needing to take a prolonged period of time off work to get back to health, Income Protection can relieve the financial pressure and stress about making mortgage repayments. Income protection insurance is paid out in monthly instalments that can help cover your mortgage repayments so you can concentrate on getting back on your feet. 

How can Critical Illness Insurance help cover my mortgage?

Critical Illness (Trauma) Insurance can cover you if you become critically ill or injured and require extensive medical treatment to recover.

Like TPD, you may receive a lump sum payment from your (Trauma) Insurance policy, which can help you when you need it most.

Critical Illness (Trauma) Insurance can be used by you to help pay for your medical treatment or help pay for your rehabilitation.

When you’re taking time off work to recover from an illness or injury, it’s important to focus on getting back on your feet. This might mean cutting right back on hours at work or taking a prolonged period of leave. Critical Illness (Trauma) Insurance can give you peace of mind with a lump sum payout that can be used towards your mortgage repayments while you’re concentrated on your recovery. 

How can Total and permanent disability help cover my mortgage (TPD)?

TPD insurance can provide you with a lump sum payment if you become permanently disabled due to accident or illness, and are unable to work.

The payment can be used to access medical and rehabilitation treatments and can also go towards paying off your mortgage.

This may alleviate any financial pressure of no longer receiving an ongoing income to be able to pay your mortgage and will allow you to focus on what is more important, which is your health.

Home is where the heart is

The reality is that an unexpected illness or injury usually requires time off work or permanently off work, and if this time off extends beyond your accrued sick leave, this could leave you and your family short. 

With the right financial support in place, you can concentrate on your recovery and give your family peace of mind for the future.

Source: TAL