| Main purpose | Family life cover for a chosen period | Primarily designed to protect a specified loan liability |
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| Cover amount | May be level or have another structure, depending on product | May reduce with the loan, remain level, or follow another structure |
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| Who receives the benefit? | As set out in policy, nomination, assignment and claim terms | May be payable to lender or another beneficiary under the policy |
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| Beyond the home loan | Can provide a broader family safety net if cover is adequate | Usually focused on specified loan-related risks; verify exact benefits |
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| Premium payment | Often regular premiums; product options vary | May be regular or a single premium |
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| Single premium added to loan | Not usually relevant to a separate regular-premium term plan | If financed, extra interest may apply under the loan agreement |
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| Early loan repayment | Can continue if premiums are paid and policy remains active | Cancellation, continuation or refund depends on policy wording |
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| Property sale or loan transfer | May remain active subject to policy terms | Check assignment, lender change and continuation provisions |
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| Medical underwriting | Depends on insurer, age, disclosures and underwriting | Depends on product and underwriting rules |
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| Policy term | Chosen policy term; cover ends according to its terms | Defined by the specific loan-linked product |
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| Critical illness / disability | Only if included as a covered benefit or rider | Only if expressly included in the policy |
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| Claims and documents | Subject to insurer's claims process and policy requirements | Subject to insurer's claims process, lender arrangements and policy requirements |
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| Cancellation / refund | Depends on product, free-look rules and applicable terms | Depends on product, free-look rules, surrender and refund terms |
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| Flexibility | May be useful for multiple family obligations | May be targeted to the covered loan liability |
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| Total cost | Compare premiums over the same period and comparable cover | Include premium and any interest if financed through the loan |
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