How life insurance can help protect your home

How Life Insurance Protects Your Family Home

Published: 8 November 2023

3 min read

Whether you're battling to buy your first home, or you’re already riding the mortgage rollercoaster of rising interest rates, safeguarding your home will always be a top priority. In the unpredictable journey of life, unexpected events can pose financial challenges, but with the right insurance, you can fortify your most significant investment. Let's explore the ways in which life insurance provides peace of mind and security for your beloved abode (and everyone in it).

A mortgage is a long-term financial commitment that demands your dedication no matter what twists and turns life throws your way. Australian Bureau of Statistics data shows that a staggering 40% of Australians would face financial hardship after just 3 months without a job. The unexpected can happen to anyone, and it's crucial to be prepared.

That's why considering life insurance is a smart move. It's your safety net, ensuring that the roof over your head remains secure and your loved ones are taken care of, even if the unexpected (like death or illness) happens to you.

Consider These Life Insurances to Protect Your Family and Home

Let's delve into the different types of life insurance that can help protect your home and provide financial security for you and your family:

Life Cover

Life cover insurance policies can provide a lump sum payment to your beneficiaries in the event of your passing or if you're diagnosed with a terminal illness. The payout can be used to pay off outstanding debts such as your home loan or ongoing homeownership costs.

Total and Permanent Disability (TPD) Insurance

TPD insurance offers a lump sum payment if you become permanently disabled and are unable to work. This payment can assist in managing your monthly expenses related to your home and making necessary modifications to accommodate your disability.

Trauma Insurance

When you suffer a critical illness as defined in your trauma insurance policy , like a heart attack or stroke, you receive a lump sum payment. Use this payment to cover ongoing expenses, including mortgage repayments and medical treatment, easing the financial burden during your recovery.

Income Protection Insurance

Income protection ensures you have a consistent income stream, replacing up to 70% of your pre-disability income if you're unable to work due to illness or injury. Protecting your income allows you to maintain your financial commitments and protect your home. Keep in mind that there is a waiting period before you can access income protection payments.

Let BlueRock Be Your Helping Hand for Life Insurance

When you've taken on the responsibility of a mortgage, having a backup plan for unforeseen events can alleviate significant pressure. Get help from our life insurance advisors with selecting the right combination of insurance coverage tailored to your unique needs. With the right protection, you can sleep tight, knowing that your home is secure and your family is well-cared for. Dreamy!

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