Insuring your life is just as important as insuring your home when it comes to taking a mortgage, according to National Australia Bank.
The bank is trying to raise awareness of the importance of insurance as it launches its new NAB Broker business. It unveiled shocking statistics which show a home is 48 times more likely to be lost through personal disablement than through fire.
Figures released by the Institute of Actuaries of Australia suggest that one in three Australians have a chance of becoming disabled for more than three months before turning 65.
The sobering figures also show that one in 10 men of working age and one in 20 women will die before age 55. It adds that 22% of Australian males and 19% of females will be diagnosed with cancer before the age of 70.
Matt Lawler, regional general manager, NAB Broker, said: "Families are spending more than ever before. Research by IFSA has shown the average Australian family now borrows $216,500 on a new home loan, has $14,500 in other debt and spends almost $310 per week raising their children.
"If people take out the right insurance they can protect their families in the event they are incapable of meeting these obligations. Unfortunately, many families are leaving themselves vulnerable by remaining uninsured."
Life insurance covers mortgage payments in the event of critical illness, unemployment, disability and death. NAB Broker is encouraging its network of brokers to make insurance available to clients.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan