Loan Protection Plan

You may be wondering why you need Loan Protection Insurance. Loan Protection Insurance can offer financial aid in the event of serious medical conditions, terminal illness or death, and can used for any purpose including making repayments to your loan.

What is Loan Protection all about?

Loan Protection Insurance ensures your financial survival in the event of a death or serious illness. This type of insurance can protect individuals and families from being obligated to sell their assets in order to keep up with their mortgage repayments in these circumstances.

At FLR Solutions, we can offer Loan Protection Insurance as a part of a Loan Protection Plan to all our valued clients. This insurance can be set up simultaneously with applying for a mortgage, as it is designed particularly for the needs of persons taking on a mortgage.

In the event of being diagnosed with serious medical conditions, terminal illness or death, your Loan Protection Insurance can assist your financial situation with a lump sum payment.

If you have a mortgage:

If you have a mortgage you must consider the effects on your partner or family and your ability to repay your mortgage if you or your partner dies or suffers serious medical condition

You have an obligation to consider these questions and decide how best to protect your mortgage

You should think about:

• How would your mortgage be repaid in the event of your death or if you suffer a serious illness or injury?
• What protection you currently have?
• If you don't have adequate protection, are you willing to accept the consequences?

Life events and loan serviceability

Everyday life events can impact your ability to meet your loan repayments.

As part of responsible lending, I have a duty to ensure you have the capacity to service your loan without undue hardship.

I take this obligation seriously. It’s about protecting your way of life.

It’s important that you consider how you would meet your loan repayments if you lost your job or suffered a serious injury, illness or even death. Would you:

• Use savings
• Use super
• Family would assist
• Rely on partner’s income
• Sell home or other assets
• Not sure?

What is Loan Protection?

Part of our service is to ensure our clients are aware of their loan protection options and as an accredited ALI Group loan consultant I will raise this with you. It is important that you take time to evaluate your circumstances as many people can be left exposed to unnecessary risk.

ALI Group’s Loan Protection Plan is designed to help ensure your family; home and your lifestyle are protected in the event you are unable to service your loan repayments.

Below illustrates the key benefits of Loan Protection Plan, a possible solution to your protection needs:

Who is ALI Group?

Established in 2003, ALI Group is a specialist risk insurance business committed to ensuring I am able to provide you with convenient and timely access to affordable loan protection.

ALI Group delivers quality products that are easy to understand, obtain and claim upon, by means of a simple offer process that allows you to make an informed decision on your need for protection.

ALI Group’s Customer Service Centre is there to help answer any questions or requests regarding your policy. Their in-house claims team will assist you through all stages of the claims process should you need to make a claim and will ensure any valid claims are paid to you by the insurer.

Talk to your FLR Solutions Finance Broker about LOAN PROTECTION PLAN

Your Finance Broker/Adviser will be able to provide you with information about the product together with a PDS, Product Disclosure Statement at the same time you apply for your loan. The Product Disclosure Statement contains the detailed information on Loan Protection Plan and this should always be considered in deciding whether you wish to apply for the product. Finance Brokers/advisers offering Loan Protection plans are doing so as the Authorised Representative of ALI, Australia Life Insurance

Important information

Licensee: This information has been prepared by Australian Life Insurance Distribution Pty Limited, ABN 31 1031 57811. This company is the holder of an Australian Financial Services License (AFSL 226 403). Your loan consultant is acting as an authorised representative of the licensee in offering to arrange for you to obtain cover.

General Advice: Where advice has been provided in this material, it has been given without taking into account your objectives, financial situation and needs. Before acting on this advice you should consider its appropriateness having regard to these matters. Your loan consultant does not provide you with advice in connection with Loan Protection or your insurance needs beyond providing this information to you.

Product Information: Loan Protection Plan is issued by MetLife Insurance Limited (ABN 75 004 274 882) (AFSL 238 096) and ACE Insurance Limited (ABN 23 001 642 020) (AFSL 239 687). The product information provided a summary of the features, benefits and exclusions of these products. For more detailed information you can obtain a copy of the Short Form Product Disclosure Statement for these products from your loan consultant. This should be considered when deciding to acquire the product.

Sources: 1.ABS Statistics | 2 The LIFEWISE / NATSEM Underinsurance Report February 2010 | 3. Cancer Council: Cancer in Australia: an overview, 2008 Australian Institute of Health and Welfare (published December 2008)