Life ACTIVE Loan Protection Insurance

Hi, welcome to Crown and congratulations on receiving your formal approval. From now, the bank documents are being produced by the solicitors and we're going to be able to sign them with you over the next few weeks. And we also want to run through something which has just been brought out by asic, is that we as mortgage brokers now are obligated to be able to ensure that all of our clients have got adequate insurance cover. So if any of them were to pass away, the loans will be paid out in full. So I with this, I just want to run through a quick example of what a lot of our clients are taking up. It's called Life Active Cover. That's brand new insurance. It's something where it guarantees rain, hull or shine, if you're sick, injured or obviously passing away, you're going to have that mortgage paid out in full. So the best thing is your mortgage has now gone from a 30 year term down to say a 14 year term. And we just want to make sure we put all the safety nets around that and the protection around that to ensure it actually does happen. So we, with Life Active, how it basically works is you get a bucket of insurance cover. And so it's a bucket of insurance cover which includes life insurance, total permanent disability insurance and trauma insurance. So it's all in the one. And what actually happens is rather than having definitions where you know how insurance companies will say, well, you didn't meet the right definition, so we're not going to pay out on that claim. It removes all the definitions and it's based on the severity of health events. So the more severe the health event you experience, the more you're going to be paid out of the bucket there. So, for example, if you were to pass away, then that's an eighth grade health event and you will receive 100% of that 500 gram bucket and you receive that $500,000, pay out the debt. If you mortgage about $500,000, for example, for a B grade health event, that may be something like a stroke or a cancer or a heart attack, where it's quite severe but you don't actually die, so you receive 65% of that 500,000, which is a nice lump sum payment, but over 300 or so grand. And what that means is we would actually reduce that bucket down from 500 grand to around about 200 or thereabouts, 1000. So 65% of that 500 grand would be paid out and then that would reduce the amount of COVID left in the bucket there. If it was A C grade health event where it's pretty severe but certainly not life threatening. You've received 40% of, of that 500 grand which would be 200 grand and you'd have a 300 grand amount of COVID left. D grade event, 20% of the 500 grand. And once again an E grade event, you'd receive a 5% pay. I mean an E grade event is something very minor, which is something where you may not even be in hospital, just a certain definition of health event saying that you were affected in this way and they would release 5% of that 500,000 there. So it's called life Active. It's, it's absolutely fantastic cover, it's brand new, just been brought out to Australia and we like it because it doesn't allow the insurance companies to kind of wriggle out of paying a claim depending on the severity of your health event. And the more severe your health event, the more you should pay it and we think that's how insurance should be. So it's all part of your home loan. It's going to be paid out of the home loan once a year. Doesn't have to come out of your own pocket and it just ensures rain hellish on. You are going to be out of debt a hell of a lot faster than regardless of any sickness, injury or death to either you or your partner. So the broker's going to go through the quotes, sign off on that and then the girls in the office will be in touch over the phone to go through the implementation of that. Thank you. I love to see you on board of Crown. Can't wait to get you debt free a lot faster.