5 Home Loan Protection Insurance Questions answered

Home Loan ProtectionArticle1 September 2025

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Heard of Home Loan Protection Insurance, but you're not sure what it's about? No problem! We're here to help.

With Zurich Home Loan Protection, you can stress less about your mortgage. Learn more about how this insurance kicks in if your future health or work circumstances change and how it can help cover your mortgage.

What is Home Loan Protection?

Zurich Home Loan Protection is designed to help you pay your mortgage if you experience an unexpected event that results in a loss of income. Including:

  • Illness or injury
  • Involuntary unemployment (including redundancy)
  • Death or Terminal Illness

There are three types of cover available: 

  1. Life Cover only – Cover for the total outstanding balance of your loan up to $1 million.  If you die or you’re diagnosed as terminally ill with less than 12 months to live, we'll pay a lump sum up to $1 million that can be used to pay your loan.
  2. Illness, Injury and Involuntary Unemployment- This cover pays the minimum loan repayment up to $10,000 a month for up to 18 months if you can't work because of illness or injury. If you lose your job through no fault of your own (such as involuntary redundancy), we'll pay the minimum loan repayment up to $10,000 a month for up to 90 days.
  3. Full Protection which combines both -This cover combines both Life benefit, Illness and Injury and Involuntary Unemployment benefits.

You can also use Zurich’s Home Loan Protection alongside other policies such as life insurance or income protection for broader cover.

How is the Home Loan Protection premium determined?

Three main factors influence the cost of your premium:

  • Your age
  • Your outstanding loan amount (for life cover) - How much is left to pay on your home loan
  • Your minimum loan repayment amount (for the other cover types) - The minimum you would have to pay each month
  • The type of cover you select

Zurich uses Open Banking to securely capture your loan details and keep your loan balance and repayment amounts aligned. This means your premium is calculated accurately each month and can decrease as your mortgage reduces.

Does Home Loan Protection cover everyone who's named on the home loan?

Zurich allows up to two policies per loan, but only one policy per customer.

  • In the event of death, benefits are paid to the second policyholder or your estate.
  • All other benefits such as Terminal Illness, Illness & Injury and Involuntary Unemployment, are paid directly to the policyholder.

How is Home Loan Protection different from home insurance, or income protection insurance?

  1. It doesn’t cover your house or belongings – only home insurance covers damage to your property.
  2. The benefits are linked to your loan repayments, not your income.
  3. Depending on your cover, you may receive a lump sum (for death or terminal illness) or a monthly benefit (for illness & injury or involuntary unemployment).
With Zurich Home Loan Protection, any benefits are paid directly to you or, in the event of death, to a policyholder on the same loan or your estate. This means you can use the funds where they’re needed most – whether that’s paying your mortgage, covering medical expenses or taking care of other urgent costs.

Stress less about your mortgage - get a quote now 

Learn more

Zurich Home Loan Protection is issued by Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 (Zurich). This information does not take into account your personal objectives, financial situation or needs. You should consider these factors and the appropriateness of the information to you. Consider seeking advice specific to your individual circumstances from an appropriate professional. You should also consider the Product Disclosure Statement (PDS) available at www.zurich.com.au in deciding whether to acquire or to continue to hold the product. Furthermore, this product has been designed to meet certain objectives, financial situations and needs, which are described in its Target Market Determination available on our website. More info.