YOUR HOME LOAN & THE PROTECTION NEEDED

Hi guys, it's Aaron Wybrow here. I'm a mortgage broker and I'm sitting with Mia, and Mia is from Keyman Financial Services. So what do you do, Mia?

So we are risk insurance specialists. A lot of people ask, what the heck is a risk insurance specialist? So basically we're able to help people with things like life insurance, income protection, tpd, trauma insurance as well. And we do do a bit of the business side of things. So shareholder protection, key person. So there's actually a lot we can do.

Absolutely. So a lot of people come to me to get a mortg to buy a house and they're under the impression that this house is the great Australian dream. It's something that's a big asset and a big part of their life, which is obviously true in some respects that we need to live somewhere, we need to provide for our family, have a roof over our head. And it is a bit of an Australian dream. But it's not necessarily the biggest asset when someone has a home loan on the property, is it?

Yeah, I agree. I think your biggest asset is actually your ability to earn an income. And I think people are very, very quick to protect all of their other assets, which is great and that's important as well. But they more often than not forget to actually protect their biggest asset, which is themselves and their ability to work.

Oh, absolutely. So I suppose we work with clients and you could be one of my clients or a client in the future where we have to look at what is our affordability, what's the living expenses cost, what's the mortgage repayment going to be, and if we can't earn the income to pay those bills, everything comes crumbling down.

Yeah, absolutely. And I think as well, you have to consider what are the flow on effects as well. Like if you, you can't pay your mortgage, you're probably not going to be able to pay for other things like your groceries and just your general living expenses, which, you know, something happens to you, it all kind of comes crumbling down. And we don't want you to be in a position where you have to dip into your lifelong savings and your other assets to get through that time. We can take the pressure you and put that pressure on an insurance company to do that so you don't have to.

Absolutely. And I suppose one of the things that happens when we come to settle a loan with a mortgage is that it sometimes can get held up because we don't have the building insurance and the bank won't go to settlement without you having Your building insurance and having the right bank noted on the building insurance to help. So we're forced into that type of insurance when we go and buy things. Even when you go, say, get a car or not necessarily have a loan or something else, you're just trying to worry about the BMW or the Mercedes that you're going to could accidentally bump into. You might have insurance to deal with that so you're not lumped with a massive bill. What could happen? Let's brainstorm it a little bit. What could happen if someone doesn't pay their CTP insurance and they have an accident?

Okay, let's think. I mean, I guess worst case scenario, I hope it never happens. But yeah, it could end up pretty bad if they get really injured. I guess on the other flip side of that, on the kind of lighter scale is, you know, you end up with a banged up car for a couple of weeks. That's totally fixable.

But I suppose with CTP too, you've got the other party that might have been injured or someone else in the car and now you've got to live with that. And then you've got sort of the government not liking that you didn't take your compulsory third party insurance as well. So the person that's been in their car in a massive accident not paid their insurance or their CTP could end up on the front page of the newspaper.

Yeah, absolutely. People knocking on your door the next day, it's scary.

So what could happen? So we know that there's some disaster insurance not to not pay, like building insurance to get a loan on a mortgage, your CTP that's compulsory on your car, your comprehensive insurance on your car, maybe for helping protect your car in there. But what, what happens when we get sick or injured, from my understanding and my work with people is that we have some, some ability to get the bank to work with us and reduce payments and maybe reduce interest for a little period of time, but they're still going to want their money back.

That's correct.

So someone that doesn't have income protection, for example, and we talked about how the biggest asset is someone being able to get up and work in the morning. We don't see those guys on the front page of the newspaper, do we?

Yeah, no, absolutely. And something that you just said kind of triggered something for me. So when you said about, you know, if somebody gets sick or injured and they're off work and the bank can, you know, make accommodations and things like that, what about the other little things like your kids, dance lessons and piano lessons and things like that. The bank isn't going to help you out with that. So that's why I think income protection is so important, because it allows you to keep living at the same kind of standard of living that you had before the accident or sickness or whatever it is. So, I mean, when you think about it like that, like, it's just the little things as well. I mean, you know, your kids have to go to birthday parties. How are you gonna buy presents? Little things like that, just so you can keep living at the same level you were living at before. I think that's really important.

It's really important. It's not. So we. We have a disastrous illness, cancer or something else that comes up, and the last thing we want is our kids coming up and saying, can't we go to the dance lesson, Mummy, Daddy?

That's exactly, exactly.

Why can't we go and see my friends? Why can't we get in the car and drive somewhere? Why can't we do that? So we love to invest into people to get their mortgage and get their home more organized. We also want to invest into them further to get them the right knowledge to have the right insurance in place so that we don't have those conversations.

That's so true. And actually, what you were just saying just then, it made me think. So there's. Well, you know what it is? I'm not sure if people watching know, but there's another type of insurance called trauma insurance, which we at Kingman, we actually like to call it choice insurance, because that's exactly what it provides you with at the time when you need it most. So, you know, dealing with like a cancer diagnosis or a heart attack, something really major like that, the last thing that you should have to be thinking about is how are my kids gonna keep going to dance classes? How are they gonna, you know, how are we gonna keep paying for their sporting and things like that? Like, you want to be in a position where you have the ability to not make rash decisions. You know, a lump sum of money at that point in time is just. It's such a blessing. So I'm so passionate about.

So it's interesting that we just touched on that lump sum of money. And obviously a homeowner is a lump sum of money that we have to pay back. But an insurance claim that sits on your table as a lump sum of money, if you didn't have that lump sum of money. Most of our troubles in life or troubles in a relationship sometimes are the frustrations of money. So if we don't have a life insurance. Well, life insurance is probably a little bit different because. Cause you may not be there to have these conversations, but your trauma insurance and income protection insurance are two critical pieces there that if you didn't have that money sitting on the table, all those other stresses that you've gone through, like how you've budgeted to buy the house in the first place, the little stresses that you might have spent something that your wife or partner didn't want you to do, those are little stresses. But when you've gone through a big event like a heart attack or a kid cancer or something, and then you've got money on top of that, your recovery could change.

Yeah. Do you mind if I share a quick story, actually? So as you were saying that, it made me think of kind of the reason why we got into the business in the first place. So work with my dad and my brother, as you know, and dad's dad. So he actually passed away really suddenly of a heart attack at 43. And he owned a bunch of fruit shops around New South Wales and Canberra and he had basically personally guaranteed the business as a mortgage. So it was not a great time when he passed away. And basically his plan was to leave one of the fruit shops to each of the three brothers. And because I guess a life insurance guy didn't do their job properly, that didn't happen. So, you know, it was really, really sad. And my grandma ended up on the pension and everything and all of that really could have been avoided with just a, you know, a chat to someone like me. And I think a lot of people are kind of intimidated when it comes to insurance. They think it's going to be way too hard or, you know, there's going to be too many questions involved and things like that. But I mean, I'm not scary. I'll make it nice and easy for you. I'll take all the intimidation out of it.

I think anyone, anyone watching something in regards to, you found me because I'm a broker or you found you because you're doing risk insurance, then if you're going to buy a house, it's going to be far more complicated than a life insurance style of application. The time that we're waiting for the banks and the complexity that we're going through with credit managers is far outweighs the time spent with someone like yourself.

Yes, absolutely, I agree. I will make an a note just on that though. I think a lot of people, they look at their, you know, they get their super statement in the mail, or they open up their super app and they see I've got a bit of life insurance in there, maybe a bit of tpd, and they think, I'm good, I'm covered.

Ticket box.

Yeah, exactly. But unfortunately, the reality of it is it's just not like that. You know, it's. There's a lot of issues that may come with that. And the reason for that is, is because they haven't actually been underwritten. So people think that going through this process of being underwritten and going through an application and maybe some medicals that may be required, they think, oh, it's really tough and it's going to take a lot of time. But what's actually worse and even more time consuming is when you need to claim and your policies haven't been underwritten. That's my concern. And that's the reason why you need to have a chat to someone like myself, because we can make sure that the policies are actually going to work at claim time when you need them to.

And I think you're right on that. And right now, while this video is going out to people is people are going through insurance claims on other things other than their person at the moment with regards to any floods or other environmental damages that are out there. And people are concerned whether they got the right cover or not the right cover. And they're at claim time. And that stress is quite, quite big. And that's only one part, because people, when the bank asks for their building insurance, they don't come out and inspect your building. They just give you the insurance based on the question and answers that you give them. And it's not very intensive. Same with your car. When you go and claim on your car insurance, they're going to assess it first. And if there's a bump on the back and you had a bump on the front. Front, and the bump on the front is your insurance, they're not going to fix the back.

Yeah, exactly.

And I suppose it's the same thing and it's just that your questions are more intensive.

Yeah, that's correct. And I think a lot of people do, they tend to be a bit put off by the underwriting process and they get a bit, you know, skeptical if there's some blood tests and things like that involved. But the way that I see it is you're so much better off getting that done when you apply than at claim time. Because we've had claims like that in the past that have been, you know, not great quality policies where literally somebody has been on their deathbed and they're literally under underwriting the policies then and there, which is you don't want that. You want certainty and peace of mind. That's why you take out the insurance in the first place. So that's why I would say don't be too intimidated by underwriting and applications and things like that.

So people still listening. I want to give a little bit of gold. So when you're coming to me to get your home loan, one of the things we need to do even before we put the application in is that we need to make sure that you're in touch with someone like Mia straight away at the time of the application. Because once we've exchanged on that contract, you're locked in, you're binded into that property purchase. So if anything happens from you exchanging on the contract to settlement or after when you need this type of insurance in place, it's not let's get approved on the loan and exchange on the contract and then see you. It's not getting settled and you've got too many boxes and you don't have the time to see Mia. You have to see her at the time that I see you. So it takes a little bit of a trust hurdle that you're going to be asked all these questions about a mortgage and now you're going to get asked all these questions about yourself. But there's ways that we can make it really easy. We can collect it as a broker and any brokers watching collect your super statements up front because it could form part of the application depending on the age of the client, or it could form part of the asset profile to get the loan through. Plus it also helps look at that tick box that you just mentioned.

Exactly.

So I think the best thing when people are going for a home loan is once you've spoken to a mortgage professional. Professional. Once you've spoken to the bank, whichever way you want to go, and I would advocate brokers, absolutely, hand down any day of the week and myself just throw it in there. But you need to speak to Mia straight away at that time application because you don't know what's happening. If you're doing a pre approval, you're preparing for an auction, all that stuff, you need to do it up front. Don't wait until you've won the auction, don't wait until you've exchanged on the contract, don't wait until you want to have that conversation going. You don't want to ring your broker and go, you know that person you Told me to talk to. And we're in the exchange period. You don't. You don't want to say, oh, you know the person that said about insurance, I think I need to talk to her now. When you've got cancer, you can't do it after the event. You got to do it before.

Yeah. And just on that, I might maybe leave you with this. So I actually heard from a wise old advisor up in Queensland. He said one time that it's better to have insurance five years too early than five seconds too late. And that really stuck with me. I thought it was just so powerful, that statement, and it's just so true, like what you just said. You know, the position that we never want any of our clients to be in or anyone who's really spoken to us is to get to that point where they're, you know, needing to claim, but they can't because they never ended up taking out the insurance. That's honestly my greatest fear for anyone.

Yeah, absolutely. So it's good.

Is that it?

Yeah. So how would we get in contact with you?

Okay. To get in contact with us, I think the best way to do it would probably just be to let Aaron know he can. He can maybe introduce us or pass on your phone number. We can. Can have a chat. Our process is pretty simple, the onboarding process anyway. And, you know, if you've already got a good relationship with Aaron. We work really well together and we're always here to help each other and each other's clients.

So we'll put contact details in the post above. When you find this video, you're either direct message, we're all across all platforms of messaging. So just reach out the way that you. You feel fit, and then we'll just meet you where you are and help you out.

Yeah.

All right, thanks. Thanks for your time.