Choosing Accelerated Cover for your insurance can help you become mortgage-free faster. Here’s how.
When you take out a policy such as Life, Income Protection or Trauma, you can opt for Accelerated Cover or Stand Alone. Let’s say you have $550K of Life Insurance and $100K of Trauma Insurance.
With Accelerated, if you need to claim on your Trauma cover, then the amount paid will be deducted from your Life cover. So any subsequent payout on your Life Insurance would be $400K. As a quid pro quo, your premiums will be lower, because you’re not doubling up on cover.
This can be a great option if you use the money saved on premiums to reduce your mortgage debt. You could become debt-free much earlier and save a significant amount in loan repayments while still having the peace of mind you get from insurance.
It’s a personal decision, and we can help you work through all the options. The goal is to make sure you have the right policies for you, for now. And if your circumstances change, we’ll be there to help you deal with them.
Have you reviewed your insurance recently? If not, make an appointment