There’s nothing quite like the feeling of financial freedom once you’ve finally paid off your home loan. But did you know that not having a mortgage could mean you’re overpaying on your life insurance premiums?
Here’s what it means for homeowners and why it’s a seriously sensible idea for anybody who’s left their mortgage behind to compare and switch to cheaper life insurance.
Paid off your mortgage? Time to check your life insurance policy
It’s common for Australians to take out life insurance when they buy a new house. After all, mortgage repayments are a big commitment and your family will still need to pay off their home loan, even if the worst happens.
When you take out a home loan you often end up thinking about insurance cover to protect your home and your loved ones, should your circumstances change – so it’s no wonder that lots of Australians take out life insurance at the same time as their home loan.
But once that final mortgage repayment is ticked off, there’s a good chance that an expensive life insurance policy won’t match your newfound financial freedom, as you’ll have fewer – or different – expenses for your loved ones to cover upon your death.
So if your life insurance policy was taken out when you still had a significant amount left on your home loan repayments, there’s a good chance you could be paying too much.
Use our life insurance calculator to figure out exactly how much you may need.
Life insurance can still provide for those you love
Even without the financial burden of a mortgage hanging over your head, life insurance can still provide much-needed peace of mind for your family.
Your reasons for having life insurance may be different today, compared to when you first bought your home. But your loved ones are constant and your older children may still be dependent on you, financially.
So now that you don’t have to worry about making mortgage repayments, it’s time to cut your monthly costs further.
Finding a cheaper provider could end up saving you hundreds of dollars in premiums every year.
The team at Life Insurance Comparison specialise in helping people find cheaper life cover. We compare policies from 10 of Australia’s leading life insurers and can find the most appropriate cover for your needs today.
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.com.au's online quote comparison tool makes it easy to get quotes from 9 Australia's biggest life insurers
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.