What does the Great Australian dream mean to you? For many of us it's owning a home but without protection in place we can put our dreams at risk.
Australians are a nation of home-owners
For many Australians a major life goal is owning your own home. Whether that's a traditional house on a quarter-acre block, or an apartment close to your work or amenities such as schools, cafes and shops. Whatever your preference, your home will likely be your most valuable – and valued – asset, so it's important to protect your ability to meet your ongoing mortgage repayments against unexpected events that could impact your income-earning potential.
Home ownership is a key part of our Australian culture. After World War Two, waves of immigrants came to Australia and the ‘baby boom' further fuelled the desire of home ownership. This desire continues with home ownership rates hovering around 70% for the past five decades. Owning a home provides long-term security, especially as you age, and it can be used as a cornerstone to build wealth and support your financial goals, family and dreams. According to the most recent Census of Population and Housing, of the 9.8 million households in the country, 67% of us are homeowners and 31% are renters.
Underinsurance needs to be addressed
Unfortunately, research by Rice Warner suggests many of us are underinsured. This is a significant issue within the community and one with major repercussions. While many take out insurance to replace or rebuild their homes in the event they are damaged or destroyed, many don't consider the importance of taking out insurance to ensure they're able to continue meeting their future home loan repayments.
For many, the ability to pay off their home loan becomes critical if they're unable to earn a salary due to a sudden and unexpected incident such as injury, illness or retrenchment. The ABS Housing Occupancy and Costs report shows the average weekly housing costs for all Australian households was $493 for owners with a mortgage in the 2019-2020 financial year, and with interest rates on the rise this figure will too. Which makes having protection in place all the more important.
Different types of insurance to protect your great Australian dream
There are different types of insurance available to assist if you're unable to earn an income. Life insurance provides a lump sum payment to your dependants in the event of your death, and this payment can be used to help them pay the mortgage. Income protection insurance can pay you regular amounts to replace part of your salary if you're temporarily unable to work due to illness or injury. Both are important types of insurances that can help provide you with the peace of mind that if you can't earn an income, you'll still be able to meet your expenses, especially your home loan repayments.
ANZ has home loan protection solution that aims to protect your great Australian dream by combining the benefits of life insurance and income protection into one product - eliminating any worries you may have about what could happen to your ANZ home loan if you ever get sick, injured, lose your job, or pass away. Within ANZ Home Loan Protection, there are three cover options available to choose from depending on your eligibility. If you purchase the illness and injury and involuntary unemployment cover- the amount of cover you receives will always match your minimum monthly loan repayments - whether you're on a fixed or variable interest rate – future-proofing you from rising interest rates.
While you can't plan for everything that might happen in the future, insurance can provide you with added safety and security to continue living your Australian dream – no matter what life throws at you.
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