Death and total & permanent disability Your income Ongoing care for your family Eliminate debt on death or disability Don't underestimate Estate equalisation

Loan Protection
Personal loans, bridging loans, home loans, mortgages, credit cards, lines of credit, hire-purchase, interest-free purchases - it doesn’t matter what you call it, it’s debt and many people have plenty of it. It’s paid for homes, cars, clothes, furniture, and children’s education. It helps provide a lifestyle most wouldn’t be able to afford simply on cash.

Almost always, when you borrow money, the lender requires a personal guarantee or some form of security for the loan. And unfortunately, when you die, the debts don’t die with you.

A common clause in mortgage (or loan) documents is that the loan becomes immediately repayable if the borrower dies or becomes disabled. Often the immediate repayment of the loan is not feasible, and it could necessitate the sale of the underlying asset to repay the lender. When this asset is your family home, your dependants could be in the unenviable position of either trying to re-finance the loan or downgrading their residence.

A cost-effective solution is to use financial protection to provide a payment upon death, permanent disablement or the occurrence of a serious medical condition, to help eliminate the debt.

How does the strategy work?
The first step is to calculate your total debts. Don’t be surprised if this is a large number - it’s better to know this now rather than later. It’s a good starting point to identify the level of cover that you need to clear your debts. The next step is to work out with us the events for which you want to be covered. For this strategy the most common form of protection is for death, but you may also want to be covered for total and permanent disability and/or the occurrence of serious medical conditions.

The benefits
	Clearing your debts allows the full value of your assets to be passed onto your dependants.
	The cost of implementing a protection strategy may be only a fraction of what you and your family could stand to lose.