It was great connecting with many members of the AIC VIC community at the recent conference. Across the conversations we had throughout the day, one theme stood out… while a significant amount of focus goes into getting a property transaction across the line, what happens after settlement is often overlooked.
For most clients, purchasing a property represents one of the largest financial commitments they will ever take on. While the process is structured and well-supported, the financial responsibility doesn’t slow down once the transaction is complete in many cases, it increases.
What’s often missing at this stage is a review of how that new level of financial commitment is being protected.
The Gap Between Debt and Protection
A common scenario we see is clients significantly increasing their mortgage for example, moving from $500,000 to $900,000 or more without making meaningful changes to their insurance cover.
In many cases, their protection remains unchanged from years earlier, is held entirely within superannuation, or simply isn’t clearly understood. This creates a disconnect between the size of the financial obligation and the level of protection in place.
If illness or injury were to prevent someone from working, mortgage repayments and living expenses continue regardless. Without appropriate cover, the financial pressure can escalate quickly.
Why This Matters
Property ownership doesn’t just increase assets it increases responsibility.
While interest rates and borrowing capacity are front of mind during the purchasing process, the ability to maintain repayments over time is just as important. Income protection, life insurance, and total and permanent disability (TPD) cover are designed to provide a financial safety net if something unexpected happens.
Yet, these conversations often don’t occur when they are most relevant.
The Role Conveyancers Can Play
Conveyancers are in a unique position within the property journey. By the time clients reach settlement, they’ve made key financial decisions and are about to take on long-term commitments.
Even a simple prompt such as:
“Have you reviewed your insurance since increasing your mortgage?”
can encourage clients to pause and consider whether their current position reflects their new reality. It’s not about providing advice, but about raising awareness at the right time.
What We’re Seeing in Practice
Following recent conversations with AIC members, we’ve reviewed a number of insurance structures where the outcomes have been eye-opening.
In one case, a couple paying close to $7,000 per year were able to restructure their cover down to around $3,000 annually while maintaining the same level of protection. In another, a client improved their Life and TPD cover without increasing their premium.
These examples highlight that insurance is often less about adding something new, and more about ensuring existing cover remains appropriate.
A Simple but Important Conversation
For many property buyers, insurance becomes an afterthought. However, when financial commitments change, it’s worth revisiting whether protection has kept pace.
At Tower Life Insurance, we support AIC members and their clients by reviewing existing cover, comparing options, and helping ensure protection aligns with current needs.
Because while settlement marks the end of a transaction, it’s only the beginning of a long-term financial commitment.
