How Can Loan Protection Insurance Help You

Written on the 1 June 2020 by Nathan Drew, Fox Finance Group

How Can Loan Protection Insurance Help You

How Can Loan Protection Insurance Help You?

In a perfect world we would all be invincible and go through life having never faced any personal life challenges.

In general, planning for the unexpected is something as a society we are now getting a lot better at. We understand that as we get older our financial responsibilities grow as does our risk to falling ill or being out of work for long periods of time.

Nobody really knows for sure how things will play out in our lives, that is one thing that can be exciting about life. Something that we do have control over is ensure that we protect ourselves against certain risks so we do not feel the financial burdens that can come from these unforseen life events.

It makes sense to ensure that you have a Plan B in place so you can continue to meet your financial obligations should your circumstances change.

Loan Protection Insurance is designed to help you set yourself up with a Plan B and can assist you in meeting your financial obligations whether you have a car loan, camper trailer loan, caravan loan, motorcycle loan, jet ski loan or boat loan just to name a few.

What Does Loan Protection Insurance Cover? (otherwise known as Consumer Credit Insurance)

When most people take out a loan, the furthest thing from their mind is that they will not be able to meet their repayments for the remainder of the contract. However, unforeseen circumstances can arise which may prevent you from doing exactly that.

This can lead to bigger issues that may have an effect on your Credit File for a long period of time. Loan Protection Insurance can be there to help you with your loan repayments until you get back on your feet and in some cases it can even to pay out the remainder of your loan.

There are different levels of cover available for Loan Protection Insurance which can cover you for a variety of circumstances:

  • Life cover (different to your superannuation life cover in that it's specific to paying out your loan contract)
  • Disability cover
  • Life & disability cover
  • Disability and involuntary unemployment cover
  • Life, disability and involuntary unemployment cover

What you need to ask yourself is, if you suffered a sudden injury and were unable to work for a period of time, lost your job through no fault of your own or worst case scenario you died, who would be left to take care of the loan.

In normal circumstances the responsibility of continuing loan repayments would fall on your and your family's shoulders which could dramatically affect you and your family.

Loan Protection Insurance can help you and your family by relieving 0ou of the burden of having to continue your repayments for varying periods of time or even pay out the remainder of your loan, if the benefits you choose covers for this.

Who Could Benefit from Loan Protection Insurance?

In short, anyone that is setting up any form of finance whether it be for a car loan, camper trailer loan, caravan loan, motorcycle loan, jet ski loan or boat loan. could qualify for these loan benefits.

Loan Protection Insurance is now more widely understood by consumers as a whole and as a person that has seen a lot of finance contracts over the years, I have personally seen the benefits being returned to my clients many times over.  This has given my clients peace of mind and protection for their family against potential financial burden.

In Summary

If you are looking at getting secured finance, it makes a lot of sense to make sure that you fully understand your options and also to make sure that your family are covered if you encounter one of life's challenges.

For more information please reach out to us on 1300 665 906.


Author: Nathan Drew, Fox Finance Group
About: Managing Director - Fox Finance Group
Connect via: LinkedIn

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