Loan Protection


Your need for protection

Every day life events can and will impact your ability to meet your loan repayments. As part of responsible lending legislation, your mortgage broker has a duty to ensure you have the capacity to service your loan without undue hardship. This is an important matter and must be taken seriously. It’s about protecting your way of life.

So much emphasis is placed on insuring our cars, property and homes that we rarely consider how we’d pay for all these things if we were to lose our health, life and ultimately our ability to earn an income – our most important asset!

Have you considered how you would meet your loan repayments if you lost your job or suffered a serious injury, illness or even death?

Your ALI Group authorised mortgage broker will raise this with you and it is important you evaluate your circumstances as many people can be left exposed to unnecessary risk.

Illness doesn’t discriminate. Would you and your family cope?

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See what’s included in the Loan Protection Plan, at a glance

Benefits at a glance

Loan Protection Plan benefits

 

Loan protection benefits

Loan Protection Benefits include:

• Death and Terminal Illness Benefit (12 months life expectancy). Pays the loan amount rounded up to the next $10,000 this is subject to a minimum of $50,000 and a maximum of $750,000
• Living Benefit covers 11 serious medical conditions. Pays 30% of the Death Benefit
• Up to 3 monthly benefits for involuntary unemployment occurring within the first 12 months of the policy (a one month waiting period applies)
• 30 days free cover – valuable time for you to evaluate your protection needs
• Multiple borrowers can be covered including non-applicant spouses of borrowers
• No medicals required and cover available for all occupations
• Loan Protection Benefits are paid directly to you and can be used for any purpose

Compare the cost of ALI loan protection with major banks

Compare

Compare the cost

It’s important that you take the time to consider how you would meet you loan repayments should the unthinkable happen. Loan Protection Plan is an affordable solution that provides peace of mind by helping protect you and your family, your assets and your lifestyle.  Applying for cover is easy via a simple application process.

Compare the costs on the table below and remember ALI pays directly to you or your estate, unlike bank policies that pay to reduce the loan amount first.

Insurance comparison table

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Insurance is often seen in an unfavourable light. We look to de-bunk some common misconceptions below.

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Myth: “Insurance companies don’t pay claims”

We often share our claims statistics so you can see the variety of claims received, the amount they were compensated and how long the process took.

Fact: The Financial Ombudsman reported 98% of insurance claims are paid without dispute4. This is a significant percentage of claims that were accepted and simply disproves the myth. As at 30 June 2011 ALI Group had paid a total of $20.2 million5 in claims!

coffee

Myth: “Life insurance is not affordable”

Fact: Premiums can cost less than the price of a daily newspaper or coffee.
81% say life insurance is too expensive, yet 61% overestimate cost6. An important feature of ALI Group’s loan protection is the flexibility to adjust the level of cover, making it even more affordable.

Myth: “My super fund already covers me”

Fact: One in two industry super fund members are underinsured by $100,000 or more7
  • 50% are underinsured by $100,000 for life insurance
  • 74% are underinsured by $100,000 for TPD

It’s estimated that life insurance cover within super is on average only 20% of what is needed. The average insurance amount payable from super is $70,0008 – for those who take the default level of cover.

1AAMI Fact Sheet, Shopping for Car Insurance, September 2008 | 2Australian Trade Commission Report, Insurance in Australia, 2009 | 3IFSA, A Nation Exposed, Closing the Protection Gap, 20051 General Insurance Code of Practice – Overview of the Year 2009 – 2010  I  4ALI Claims were paid by the registered life insurer of the loan protection products distributed by ALI Group  I  5OnePath Life (formerly ING Life) Australia’s Attitudes Towards Life Insurance, Dec 2008  I  62008 survey by Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum (IFF) – AIST Media Release, 3rd June 2008  I  8Rice Walker Actuaries, Analysis of Insurance Needs, May 2005