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Insurance
“Mortgages and Protection: A Borrower’s Perspective”
Owning a home or investment property – a significant achievement.
Buying a home or investment property is a major step towards financial
security. The purchase will often be the result of many years of hard work
and sacrifice.
Where money is borrowed to purchase the property, there will also be
extensive ongoing obligations in the form of loan repayments. These
obligations will sometimes continue for 30 years.
The impact of serious illness or death
People who have loan commitments need to consider the consequences of
serious illness or death.
The effect of these events for a family will always be traumatic. There will
also be financial consequences as a loss of income or incurring additional
costs will impact on the ability to repay the loan.
Where the loan repayments cannot be made it is not unrealistic to expect
that the family home or the investment property may have to be sold. Serious
illness or death has the potential to lead to financial ruin for the
individuals and their families where significant loan commitments exist.
Whilst little can be done to avoid the trauma that will inevitably occur,
proper planning can minimise the financial consequences and help safeguard
major assets.
People will always cope better with the emotional trauma when they are able
to avoid any added financial concerns.
The role of protection
Insurance can protect individuals and their families from being forced into
selling their home or investment property in the event of a serious illness
or death.
An appropriate amount of protection can even enable the debt to be cleared
in full.
Life insurance protection is a particularly cost effective way of providing
this financial security and is a responsible action for people with loan
commitments.
Loan Protection PlanAs an authorised representative of ALI (Australian Life Insurance) Pride
Mortgage Services can offer its clients the ‘Loan Protection Plan’, a life
insurance policy issued by ‘Tower’. The Loan Protection Plan not only covers
your family in the event of your death, but also provides payouts in the
event of terminal illnesses and partial payouts in the event of serious
medical conditions.
More homes are lost to due to the death or illness of the mortgagee than are
lost to fire every year – around fifty times more. Yet more people have
insurance to cover themselves in the event of fire than have life insurance.
It is reasonably inexpensive to have your family home covered in the event
of your death or serious illness and with the Loan Protection Plan you get
THREE MONTHS FREE with absolutely no obligation. So while going through all
the processes of buying a new home or refinancing, why not take out the free
insurance and know that you’re covered in the meantime. You then have three
months to consider your options and cancel the insurance if you decide it is
not for you, without having to pay a cent!
For a quote for yourself or yourself and your partner, call us now. To read
the article in the Winter 2009 Pride Mortgage Services Newsletter about
insurance, please see our Mortgage News Section.
Certificates of Currency or Building Insurance
Before your lender will release the loan funds to you they require you to
provide them with a Certificate of Currency, to ensure the home being
mortgaged is insured against damage. Pride Mortgage Services can now offer
this insurance service to their customers without having to consult with
other companies. Getting the insurance policy can sometimes take weeks to
organise and can therefore delay the settlement of your loan. You can,
however, have this insurance organised for you from our office and have the
certificate ready almost immediately to be faxed to your lender and know
that the issue is taken care of without delay
We can also provide standard building and contents insurance. To not only
protect the home itself, but all your belongings.
Your Other Insurance Needs
At Pride Mortgage Services we want to make sure our clients are
appropriately covered. Even if we don’t stock the insurance product that
meets your needs, we have alliances with insurance providers we know to be
reliable, reasonably priced and comprehensive, so we can point you in the
right direction.
To see how we may be able to service any of your insurance needs,
contact us
now.
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