Insurance
Please note that Vision Home Loans does not provide advice in these areas. We are more than happy to put you in touch with qualified advisers in this area, however, we do not make any recommendations.
1. Lenders Mortgage Insurance
2. Building Insurance
3. Landlords Insurance
4. Income Protection
5. Mortgage Protection
6. Total Permanent Disability Insurance
7. Trauma Insurance
8. Life Insurance
Remember – a fully qualified financial planner holding proper authorities in these products should advise you on these matters.
Lenders mortgage insurance
A policy taken out by lenders to protect themselves –
- It covers the event where a loan is defaulted and the bank sells the property and fails to recoup all their funds. The insurance policy covers the loss.
- Generally, when you borrow more than 80% of the property value, the lender will pass the cost of this premium on to you
- The insurer used is dictated by the lender
- These costs can differ and we can show you the cost differences
Building insurance
- This covers certain types of damage to the structure of the property
- When a property is being as security for a loan, some lenders will require that you take out building insurance – and you will need to tell the insurer which lender is the interested party
- Regardless of what a lender wants, it is worth considering insurance of this type due to the magnitude of the replacement costs if significant damage occurs to your property
- With units, this insurance is organised by the strata manager
Landlords insurance
Protect your residential investment property with Landlord Insurance. On top of the standard home cover, it protects you against intentional damage caused by a tenant or loss of rent whilst the property is being repaired
Income protection
Income protection insurance pays a replacement income benefit, generally up to 75% of annual income, during periods of disability (caused by illness or injury) resulting in an inability to work.
Mortgage protection
Mortgage protection insurance is similar to income protection however the premiums are linked to cover loan repayments rather than 75% of annual income.
You need to be careful as many of the standard bank policies will limit the time frame that the applicant will be covered for. Eg, it may only cover 2 years worth of repayments
Total Permanent Disability Insurance
Insurance designed to cover you if you are “totally disabled”. The definition of totally disabled is very important. Please consult a Financial planner to find out more.
Trauma Insurance
Trauma Insurance is designed to cover you if you experience a major physical trauma. Examples of this could be heart attack, stroke, or malignant cancer. Please consult a financial planner to find out more
Life Insurance
Life insurance is a product designed to pay a lump sum benefit to your beneficiaries if you die. This type of insurance can be customised in many different ways. Please consult a financial planner to find out more.
