Benefits Of Mortgage Protection

Benefits Offered by Mortgage Protection Plans

  • Mortgage protection plans have various benefits out of which the primary benefit is to ensure that families in Australia do not lose their homes when the main bread winner of the family is ill, disabled or loses his job due to which he is unable to make mortgage repayments. Depending on the selected plan, the policy holder may be able to get financial support from the insurer for a few payments or the insurer may decide to settle the mortgage once and for all. Usually the insurer will make a lump sum payment to the lender who has provided the mortgage; however the amount of the lump sum payment will depend on the type of the policy and the severity of the policy holder’s problems.
  • Additional benefits of mortgage plans include but are not limited to, peace of mind once a plan is purchased since the policy holder knows that he and his family do not have to worry about making repayments if in case they are unable to make the repayments on time. While mortgage plans cannot ensure that nothing bad will happen to you, these plans can ensure that you and your family remain financially stable when you are unable to earn income either for a short span of time or indefinitely.


How To Get Maximum Benefits from Mortgage Plans

  • The best way to get maximum benefits is to purchase a plan that offers financial protection against a variety of problems. While it may seem cost effective to buy a plan that offers financial protection against only death and disability; in the long run purchasing a plan that offers protection against additional situations will prove more beneficial. Some of the additional situations that are covered by better plans include involuntary loss of job and trauma such as serious illnesses.
  • Another way to get maximum benefits, the buyer should compare plans before he makes a final decision regarding the type of plan he wants to get. Comparing plans by using the services of insurance comparison websites have two purposes and these purposes are, to find a plan that meets the buyer’s financial needs and to find a plan that meets the buyer’s budgetary needs.
  • To compare plans the buyer has to decide which insurance company or insurance comparison website he would like to purchase a policy from. The next step is to, choose 2 or more plans, and compare these plans by using the services of the website. The final step is to ask for multiple quotes and decide which plan he can afford. Buyers should note that while insurers in Australia offer comparison services on their websites, these websites do not offer comparison services for policies from other insurers. This means that, if you visit an insurance company’s direct website then you cannot compare plans from other insurers however; if you visit an insurance comparison website or an insurance agent’s website then you can compare plans from various insurers in one place.


How Much Do I Have to Pay for Mortgage Protection Plans with Maximum Benefits?

  • The premiums you pay for mortgage plans will depend not only on the type of cover you select but also your level of risk. High risk buyers such as people who are likely to injure themselves, people who are likely to die prematurely or people who are likely to suffer from health problems such as heart problems or cancer may be asked to pay higher premiums compared to low risk buyers. If you have pre-existing health conditions that are considered to be serious, or if you smoke, ride a fast bike, play rough sports and have a high BMI, then chances are that you may have to pay high premiums.
  • The terms of the plan such as exclusions, restrictions or the waiting period if applicable will also determine how much you pay the insurer every month towards premiums. Opting for a plan with more restrictions will reduce your premiums; however opting for a flexible plan will give you more control of your policy and life. Most insurers allow policy holders with flexible plans to manage their policies online by assigning them a user id and password. These policy holders can not only change their current address and other profile information online, but they can also change certain features of their policy and pay premiums online in just a few minutes.
  • There are various ways to cut down on premiums, one of these ways is to quit smoking for 12 months before you purchase a plan and another way is to lose 5-10% of your body fat before you purchase a plan. To reduce your risk level, you basically have to stop doing to reduce the frequency of doing what makes you a high risk level applicant. Changing your lifestyle can help you save up to 50% on premiums every year and it can also help you live a longer and healthier life.
  • Opting for exclusions is another way to reduce your premiums; however by opting for exclusions you can leave yourself unprotected if you are injured or fall ill due to the exclusion you have selected. For instance, if you decide to put sports injury as an exclusion, to reduce your premiums and if you get disabled due to a sports injury, then you will not be eligible to get the benefits offered by the plan.
  • If you are a non smoker, if you have a healthy BMI, if you are purchasing more than 1 insurance plan at one time or if you are part of a loyalty program with the insurer then you may be eligible to get certain discounts that can lower your premiums by up to 10% a year. In addition, if you decide to pay premiums for the policy in advance to the insurer every year, then the insurer may give you an additional discount on premiums. It should be noted that the higher the premiums, the larger the discount if you pay in advance.


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