How property investors will be affected by the new rigid loan application review from tax accountants in Pymble

How Will You Repay Your Loan if You Cannot Earn an Income?

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Almost 60 percent of Australians believe they would need to sell an asset within three months of losing their income – this is because many do not have loan protection insurance.

Every year, 130,000 of us will have a cancer diagnosis or 54,000 will suffer a heart attack

There are over 1,000 strokes in a week alone!

Yet many of us do not ask the question of how we will maintain our repayments in such dire circumstances?

If you were retrenched, how would you keep paying the mortgage? Many of us believe that they would need to lean on family and friends, or that they would need to access their super (though many such insurances would not cover job loss).

Good mortgage brokers can offer their clients loan protection insurance which offers them peace-of-mind. Typically they cover involuntary unemployment, death and terminal illness as well as the major medical conditions.

None of us like paying insurance premiums, but home insurance can feel like a God-send after a cyclone. And car insurance is the same when we see how much repairs can cost. The same applies to loan protection – a necessary evil.

If you want to discuss whether you have adequate loan protection insurance, please contact Chan & Naylor Finance

Graeme Salt | Chan & Naylor Finance


Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.

4 responses to “How Will You Repay Your Loan if You Cannot Earn an Income?”

  1. Darren says:

    Hi There,

    Just a quick question. If I have say 40% of the Home Loan amount in my offset account. Do I still need Loan Protection Insurance? Thanks

    • Graeme Salt says:

      Thanks Darren. I guess the question is. Do you have the resources to keep making the loan repayments if somehow you were incapacitated?
      Some borrowers naively think, if there is some personal disaster, they will sell a property. But that takes at least three months and sometimes does not provide enough funds needed to medical emergencies and to make the loan repayments too.

  2. Brett Cross says:

    Pls explain the mechanics of loan protection insurance premium calculations as in how they are calculated.

    • Marco De Gouveia says:

      Hi Brett

      As with all insurances, it payouts out for various claims (primarily severe illnesses, death and unemployment). As with all insurances, the insurance charges you a premium based on your lifestyle – particularly whether or not you are a smoker and your age.

      If you want more information, please can you call Chan & Naylor Finance on 1300 30 68 68

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