Also would be known as Loan Protection Insurance.

This type of insurance policy is designed to pay your loan repayments if you become involuntarily unemployed for up to three months. This cover will also pay your loan repayments if you can not work due to sickness, injury or disease, or it will even pay your outstanding balance up to the policy limit should you die.

The premium is financed as part of your loan, and is usually only an extra few dollars per week, which will cover the whole term of your loan.

This cover will not effect, and is in addition to any of your sick leave, compensation entitlements or any other income protection you may have. It also gives protection to your family or loan guarantor and piece of mind knowing that the burden of debt will not be passed on to your loved ones.

The information provided on this site is for general advice only and the product disclosure statement should be consulted for full details.