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Life Insurance and Getting a Mortgage

Discover the importance of Life Insurance cover when taking out a home mortgage.

Buying a home brings a new level of financial responsibility, with mortgage repayments that need to be made regardless of what’s taking place in your life. NobleOak’s Life Insurance can help you keep up with your mortgage and other expenses if you become seriously ill or injured so you can keep doing the things you love.

Do I need Life Insurance to buy a house?

A key consideration for couples who are married or live together is that as their family grows, they may need to upgrade their home or relocate to a bigger property. These changing circumstances provide a great opportunity to evaluate your existing Life Insurance policy to see if you should top up the amount of cover. This process is simple with NobleOak, with the Future Increases Benefit feature with our Term Life Cover. If you were to increase your mortgage, on application to us, your cover can be increased by $100,000 (or 20% of the original sum insured, whichever the lesser) without the hassle of providing any updated health or medical information.

When committing to buying a new home, it’s important to cover yourself for all eventual outcomes, including how your family will make mortgage repayments if you suffer a significant illness or injury, or pass away. NobleOak’s life insurance products offer a way to reduce the risk of this potential burden hindering your family’s future should the unexpected happen. Buying Life Insurance to help cover mortgage payments can be a straightforward process that your loved ones may thank you for in years to come.

Is Mortgage Protection the same as Life Insurance?

Although these terms are often confused with one another there is, in fact, a clear distinction. Mortgage Protection Insurance (MPI) has one purpose: to help you pay off your mortgage. The payments will stop once your mortgage has been paid off in full. In contrast, a Life Insurance payout can be used in any way you (or your beneficiary, depending on the cover and the event) see fit, whether that is towards a mortgage or other regular outgoings.

Typically, an MPI benefit will reduce as your mortgage decreases. Life Insurance cover usually increases with the cost of living, depending on the type of cover you have.

Life Insurance for other key life events

If you’re interested in learning how Life Insurance can help improve your financial circumstances for other key stages in your life, browse the related Life Insurance guides below.

Getting Married

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Starting Out

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Raising a Family

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Calculate your Life Insurance in a few simple steps

Find out how much Life Insurance you need and receive your personalised Life Insurance report .

Types of Life Insurance

With NobleOak’s Life Insurance, you can help protect your lifestyle against a serious illness or injury, so you can keep living your life while easing the financial burden.

Life Insurance

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Income Protection

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TPD Insurance

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Trauma Insurance

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Business Expenses Insurance

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SMSF Insurance

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