Zurich has launched Home Loan Protection, a cover that automatically adjusts its premiums as an insured’s mortgage is reduced. 

The product uses Open Banking technology provided under the Consumer Data Right regime to ensure people are covered only as much as they need as they pay off their loans. 

If a customer cannot work due to illness or injury or becomes unemployed through no fault of their own, the product provides instalments to cover loan repayments or day-to-day expenses.

In the event of death or terminal illness, a lump sum is provided that pay off the mortgage.

Head of retail Tim Kane says Zurich’s research shows a mortgage can be a key factor in feelings of financial insecurity.

“HLP is designed specifically for this need,” he told insuranceNEWS.com.au. “It combines life and income protection-style benefits, including cover for involuntary unemployment, without requiring a medical underwriting process.”