What is Loan Protection Insurance?

They say that to be young is to be invincible; to be blissful in our ignorance of mortality.

For the majority of us, this happy naïveté extends far beyond our younger years and well into maturity. For the most part, we like to think in a way that allows us to plan ahead. This type of thinking is good; it is practical. Without this optimism, how would we get on with our days and our lives?

Planning ahead is good and practical, but as our responsibilities grow with the years, there also needs to be a certain awareness of what could happen.

We are not future-proof. And in order to safeguard ourselves and our families, we need to put some Plan B’s in place – particularly if we have ongoing financial obligations.

Loan protection insurance is designed as one of those Plan B’s, to assist you in meeting your financial obligations in case your circumstances should change.

Sometimes, we are reminded that we are not so invincible. At these times, it pays to have insurance that can work even when you can’t.

What Does Loan Protection Insurance Cover?

When most people take out a loan, they are confident in being able to meet their repayments for the remainder of the contract. Sometimes, however, unforeseen circumstances arise which may prevent you from doing so.

Loan protection insurance is there to assist you with your loan repayments – or even to pay out the remainder of your loan – when you are no longer able to meet your commitments.

There are different levels of cover available under this type of insurance, to cover the various circumstances that could arise during the course of your loan repayments:

• Death cover
• Disability cover
• Death & disability cover
• Disability and involuntary unemployment cover
• Death, disability and involuntary unemployment cover

If a sudden injury, unemployment or death should occur, in normal circumstances the responsibility of continuing loan repayments would fall automatically to you or your family.

Loan protection insurance relieves you and your family of the burden of having to pay out the remainder of your loan, with coverage available up to $100,000.

Who Could Benefit from Loan Protection Insurance?

If you are engaged in any form of contractual finance repayments – be it a home loan, a car loan, a boat loan or a personal loan – loan protection insurance could be a smart move.

For the duration of your financial obligations, the different levels of cover available will help to ensure you and your family are protected in case of a change in circumstances.

If an unforeseen event does occur, loan protection insurance will help to ensure that your repayments are met without putting you or your family at risk.

‘If a sudden injury, unemployment or death should occur… the responsibility of continuing loan repayments would fall automatically to you or your family.’

Summary

If you are engaged in any form of contractual finance repayments – be it a mortgage, a car loan, a boat loan or a personal loan – it is a smart move to make sure you are covered in case of a change in circumstances.

For the duration of your financial obligations, the different levels of cover available will ensure that you and your family are protected in case of a change in circumstances.

If an unforeseen event does occur, loan protection insurance will ensure that your repayments are met without putting you or your family at risk.

For more information on loan protection insurance or to get a free quote, call Rapid Finance on 1300 467 274