Life Insurance - Home Loan Advice Centre

By: Home Loan Advice Centre  09-Dec-2011
Keywords: Insurance, Home Loan, Life Insurance

A variety of personal insurances are available to protect your wealth and your capacity to generate wealth. This allows you and your family to have peace of mind that everything you've strived to achieve is protected and that your future plans have a strong foundation.

The insurances available includes loan repayment insurance, income protection insurance, life insurance, critical illness insurance, and other general insurances.

How you pay for your insuance is also an important factor as in certain circumstances, it may better to pay your premiums from your superannuation rather than being paid directly by you.
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Mortgage Repayment And Income Protection Insurances

Mortgage Repayment or Income Protection insurance is relevant to you if you are organising a home loan to purchase property. For many people, property purchase is the largest financial investments they will make in their lifetimes. It is important to safeguard your ability to make loan repayments in case of an unforeseen event that may threaten your income. 2 main types of insurance that can do this include ..

  • Mortgage repayment insurance – insurance that specifically covers a certain amount of loan repayment. For example – if your loan repayments are $3000 per month, mortgage repayment insurance is available that would cover all or a certain portion of this in the event of death, accident, or illness.
  • Income protection insurance – this type of insurance is broader than mortgage repayment insurance above. In the event you have an accident or illness that prevents you from earning an income, income protection insurance can pay a certain agreed proportion of your income for a specified length of time. Due to the broad nature of this type of insurance it is generally more expensive than mortgage repayment insurance however you may deem it more suitable in your particular circumstances.

Other Insurances

Other personal insurances available to you to protect your home, business and family include

  • Life insurance – insurance which can give you and your family confidence of financial security in the event of the death of one or more of the income earning members of the family. This type of insurance usually pays out a certain preagreed amount in the form of a lump sum on death of certain family members.
  • Total and permanent disability insurance – insurance which pays out an agreed amount in the form of a lump sum on the event of the insured becoming totally or permanently disabled.
  • Trauma Insurance
  • Business Insurance

The information in this article was current at 09 Nov 2011

Keywords: Home Loan, Home Loan Advice, Income Protection Insurance, Insurance, Life Insurance, Loan Advice, Loan Repayment, Loan Repayments

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09-Dec-2011

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Although wealth creation is the major goal of financial planning, effective tax planning is an important part of any properly prepared financial plan. Full consideration is given to allowable deductions and assistance in lodging payg tax variation to maintain your ongoing cash flow. Superannuation rules may allow CGT exemptions in certain circumstances which greatly reduce CGT payable for sale of certain assets.