Life Insurance—it’s not a scam!

This week I’d like to share with you one of the most difficult conversations I have had in over 20 years in the finance industry. I don’t share this to worry you, but to make you think hard when you’re taking out a loan as to what you would do if the worst was to happen.

Dave took out a home loan and at that time he did the right thing and reviewed his life assurance.

As a fit young man who worked hard and had no health worries. He ate healthily and didn’t smoke.

8 years into his loan, Dave was diagnosed with terminal cancer. He was the only income earner and would be leaving his wife alone with their 2 children.

Although I hadn’t sorted out his home loan, Dave asked me to help him to access his insurance to pay it out. There was no record of any insurance cover.

Unfortunately, the records did show that when Dave reviewed his life assurance, he decided that he would not take it out as he felt that the cost was just too high.

This was obviously devastating news. He knew that without him, his family would be unable to continue in the family home. In fact, they were likely to have nowhere to live.

This is a true story and the single hardest conversation I have ever had with a client.

At Lendfirst Home Loans we make no apologies for advising clients to seek independent advice from an insurance specialist with every home loan application.

The cost of a monthly premium is one thing, the cost of leaving a family in this situation is one that no one should ever have to pay.

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