^ Online Discounts Terms & Conditions

  1. Discounts apply to the premium paid for a new Budget Direct Home & Contents, Home only, Contents only, Comprehensive, Third Party Property Only or Third Party Property, Fire & Theft Car Insurance policy, initiated online on or after 29 March 2017, and for a new Budget Direct Comprehensive, Third Party Property, Fire & Theft & Third Party Property only Motorcycle Insurance policy, initiated online on or after 4 June 2020 and for a new Pet Insurance policy, initiated online on or after 18 February 2021. This online discount does not apply to Roadside Assistance that is added to a Budget Direct Car Insurance policy.
  2. The new policy discount amount varies by product: 30% discount on combined Home & Contents Insurance (consisting of 15% discount for combining Home & Contents covers and 15% discount for policies initiated online), 15% for Home only or Contents only policies, 15% discount on Comprehensive, Third Party Property Only and Third Party Property, Fire & Theft Car or Motorcycle Insurance and 15% discount on Pet Insurance.
  3. A 15% discount applies to the premium paid for a new Budget Direct Travel Insurance policy initiated and purchased online on or after 22 February 2023.
  4. Discounts do not apply to any renewal offer of insurance.
  5. Discounts only apply to the insurance portion of the premium. Discounts are applied before government charges, taxes, levies and fees, including instalment processing fees (as applicable). The full extent of discounts may therefore be impacted.
  6. We reserve the right to change the offer without notice.

§ Life Insurance $100 eGift card Terms and Conditions

§Subject to the Terms and Conditions, the Promoter will provide each Eligible Customer with one (1) $100 eGift Card when they obtain a quote for one or more Budget Direct branded life insurance policies (Eligible Policy/Policies) during the Promotion Period and purchase one or more Eligible Policies based on that quote. To qualify, the Eligible Policy or Eligible Policies must have a total annualised premium of at least $400 at the time of issue. Where more than one Eligible Policy is issued under the same quote or application, the combined annualised premium of those policies may be used to meet the $400 threshold.

This offer is limited to one (1) eGift Card per Eligible Customer, regardless of the number of Eligible Policies held. The Promotion commences at 12:01am (AEST) 8 July 2026 and ends at 11:59pm (AEST) 31 December 2026 (Promotion Period).

To qualify, the Eligible Policy or Eligible Policies must be held continuously for 90 days from the date of issue, with premiums equivalent to at least three months’ cover paid in full with no amounts outstanding. The annualised premium must not decrease below $400 during the 90-day period.

Each Eligible Customer will receive an email containing a link to select a retailer and download their digital eGift Card within 60 days of meeting the Eligibility Criteria. This offer cannot be used in conjunction with any other offer.

The Promotion is not open to customers who renew, amend, or cancel and replace an existing policy for the purpose of participating in the Promotion. The Promotion is also not open to officers or directors of NobleOak or Auto & General or any of their Related Entities or Related Bodies Corporate, employees who are directly involved in administering, marketing or approving the Promotion, or immediate family members. See full Terms and Conditions. Promoted by NobleOak Life Limited ABN 85 087 648 708, AFSL 247302. eGift Cards fulfilled by Auto & General Services Pty Ltd ABN 61 003 617 909, AFSL 241 411.

‡ Standalone Roadside Assistance, 15% Online Discount Offer Terms & Conditions

  1. The 15% discount applies to the first year's membership fee paid for a new Budget Direct Standalone Roadside Assistance membership purchased online only, using the promotional code SOLVED15.
  2. This offer does not apply to Roadside Assistance that is added to a Budget Direct Car Insurance Policy.
  3. Offer is valid from 1 July 2021 and cannot be used in conjunction with any other offer.
  4. The 15% online discount does not apply to any renewal offer of membership.
  5. We reserve the right to change the offer without notice.

Can Life Insurance Cover My Mortgage?

A young couple pets their dog in the middle of unpacked boxes and chairs in their new home.
Tom Stefanou

Tom Stefanou

SEO & Content Strategist

7 July 2026 | See disclaimer

Applying for a new mortgage is a major financial decision, and depending on your financial and personal situation, you may need some extra financial support.

Especially if you’re unable to work due to an unexpected illness, disability, or injury, or become terminally ill, which can significantly impact your financial situation.

And with rising living expenses, monthly loan repayments on a mortgage and other debts, it’s clear why you would be looking for a way to protect your family home.

What Types of Insurance Can Cover My Mortgage?

Life Insurance should not be confused with Mortgage Insurance, including Mortgage Protection Insurance and Lenders Mortgage Insurance.

Mortgage Protection Insurance

Mortgage Protection Insurance is taken out by the borrower and covers their home loan repayments in case the borrower loses their job, becomes seriously ill, or passes away.

Mortgage Protection Insurance is not offered by Budget Direct.

Lender’s Mortgage Insurance

Lender’s Mortgage Insurance (LMI) is taken out by the lender and covers them if the borrower is unable to meet their mortgage repayments and the property has to be sold. If the sale proceeds do not cover the outstanding loan balance, the lender can claim the shortfall.

Lender’s Mortgage Insurance is not offered by Budget Direct.

How Life Insurance Products Can Cover Your Mortgage

When applying for a Life Insurance policy, we calculate your premium based on information that you provide, such as your age, occupation, pre-existing medical conditions and smoking status.

While not all life products are suitable for everyone, Budget Direct has several Life Insurance products that (if you’re approved) can help to cover your mortgage.

Life Cover

Life Insurance pays a lump sum payment if you pass away or are diagnosed with a terminal illness.

If you get a terminal illness, we can advance your death benefit cover amount, rather than pay it when you pass away.

This provides an opportunity for you to cover any mortgage expenses and help support your family financially once you’re gone.

Life Cover

Total and Permanent Disability

Total and Permanent Disability Insurance covers you if you’re unable to work again due to illness or injury.

If you take out or increase a mortgage on your primary place of residence (either alone or with another person), then you may be eligible for the Future Increases Benefit.

Under this benefit, you can increase your cover by $250,000, or 50% of your original cover amount or the new or increased mortgage amount (whichever is smaller), without needing to provide further medical evidence.

Keep in mind that you must provide a copy of the mortgage documents as evidence to be eligible for this benefit.

Total and Permanent Disability

Income Protection Insurance

Income Protection Insurance provides a monthly payment if you’re unable to work due to illness or injury, and are required to take extended leave from work.

While it hasn’t been specifically designed as mortgage protection, your Income Protection policy can be used to cover different living costs, including your mortgage payments.

As of the December quarter of 2025, the average loan size was $736,000 for owner-occupied dwellings.[1]

This extra financial support can help you make regular payments on your mortgage, in a time when you’re unable to work, and avoid further financial strain and falling even further behind.

Income Protection Insurance

Differences Between Life Products and Mortgage Protection

Find whether you need Mortgage Protection Insurance policies, Life Insurance or Income Protection Insurance and how they all compare.

Mortgage Protection InsuranceLife CoverIncome Protection Insurance

Can cover mortgage repayments if you get a serious illness or injury

Can cover mortgage repayments if you become involuntarily unemployed

Can cover mortgage repayments if you pass away
Can cover other living expenses that aren’t mortgage repayments
Can make tax return deductions

Considerations For Life Insurance Cover

Before you apply for Life Insurance, there are a few things you should consider first.

Employment

In compliance with superannuation law, you must have stopped or temporarily stopped your employment where you receive any income or rewards under a continuing employment contract to apply for Life Insurance products.

To be gainfully employed means to be “employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.” [2]

Or if you are involuntarily unemployed, this means you are unemployed due to redundancy (not a voluntary redundancy), retrenchment or as a result of your employer filing for bankruptcy. [2]

Any type of redundancy benefit or redundancy payments will be excluded from your regular income when it comes to Life Insurance.

Existing Medical Conditions

When applying for a Life Insurance policy, you will be required to disclose any existing conditions you may have.

And while having an existing condition may increase your premium (to account for any added risk), not disclosing a medical condition can be much more costly, making this an important conversation to have.

Life Insurance with Pre-Existing Medical Conditions

Single and Joint Policies

You can only apply for Life Insurance cover for yourself (as the Life Insured) or for someone else as an authorised representative. We don’t issue policies in joint names.

Policy Ownership and Beneficiaries

You are the only Life Insurance policyholder, and in most cases, your personal information is collected directly from you when you apply for Life Insurance or make a change to your cover.

This may include information such as your name, date of birth, address and your beneficiaries’ details.

Your nominated beneficiaries are a person, group or entity that is nominated (by you) to receive your death benefit when you pass away.

Exclusions and Limitations

Checking the exclusions and limitations in our product disclosure statement will help you understand more about:

  • Why won’t we pay any Life Cover claim
  • Special Acceptance Terms
  • Benefit reductions
  • Complying with superannuation law
  • When your insurance policy ends

Our Life Insurance Calculator

Our Life Insurance Calculator can help you figure out how much life insurance cover you may need.

Your Life Insurance is calculated based on:

  • Your lifestyle choices, including your family unit
  • Your living costs and everyday expenses
  • Your mortgage and other debts
  • Your medical history and health
  • What amount of money would you like to leave to loved ones
  • The overall value of your income, assets, superannuation and other investments.

We calculate your Life Insurance premiums based on your responses, so you can tailor your policy to meet your needs.

Life Insurance Calculator

See More Articles

References

  1. Australian Bureau of Statistics, 2025, Lending indicators
  2. NobleOak Life Limited, 2024, Product Disclosure Statement

Disclaimer

This information is general in nature only. While Auto & General Services Pty Ltd, ABN 61 003 617 909, AFSL 241411 (AGS) trading as Budget Direct has endeavoured to ensure the information we've relied on is accurate and current (at the date of publication), AGS does not guarantee it. Information has been prepared in reliance of the information outlined in the references. AGS accepts no liability for this information.

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