Loan protection insurance

Life doesn't always go as planned and your financial commitments continue, even if your income doesn't.

MoneyPlace has partnered with specialist insurer LFI Group to help ensure that your finances can stay on track, even if something should go wrong.

Benefits of LFI

LFI offers a broad range of innovative credit insurance solutions, so you can have peace of mind knowing that your loan repayments will be taken care of if you are off work due to an illness or injury, or if you are made redundant.


You don’t pay for cover you can’t use.

No medicals

Simple application with no medicals required.


Full time, part time, casual, contract work and self-employed accepted.


Direct debit or up front payments. Cancel anytime.

This page provides a summary of the key terms only. Any advice is general in nature and does not take your personal circumstances into consideration.

Types of cover

Disability cover

Disability Cover pays your loan repayments if you can’t work because of a serious illness or injury amounting to disability, and features:

  • cover available for self-employed, contractors, part-timers and casuals
  • no limit to the number of claims
  • benefits are not impacted by death and continue for up to a year if you pass away while disabled
  • partial cover for your balloon repayment if you are disabled when your balloon repayment is due
Show example

Example — workplace accident

Susan has Loan Protection with Disability Cover. As a result of a workplace accident, Susan is unable to work for 180 days. LFI will pay Susan’s loan repayments to her lender for each day Susan is disabled for 180 days.

Example — family facing repossession of their main transport

Mei has Loan Protection for her car loan with Disability Cover. Mei’s car is the family vehicle and Mei is her family’s main income earner. As a result of a workplace accident, Mei is severely injured and makes a disability claim after the qualifying period. LFI will pay Mei’s loan repayments to her lender while Mei remains Disabled. If Mei passes away, the entitlement to disability benefits continues uninterrupted for up to 12 months. This will assist Mei’s family to deal with her loss, without being concerned about how to pay Mei’s lender or losing access to the family car.

Life changing illness cover

Life Changing Illness Cover provides you with immediate cash assistance if you are diagnosed with cancer, heart attack, stroke, Parkinson’s Disease, motor neuron disease or early onset dementia, featuring:

  • immediate access to a lump sum benefit to help you manage financial commitments
  • the benefit can be used as you see fit, and is paid independently of other benefits
Show example

Example — life changing illness cover

Tanisha has Loan Protection for her $10,000 car loan when she is diagnosed with melanoma. LFI will pay Tanisha a lump sum of $1,500 which she uses to cover travel, child care and time off work incurred when undergoing surgery and chemotherapy.

Unemployment and Carer Cover

Unemployment and Carer cover can meet your loan repayment obligations if you lose your job or your business fails, or if you need to leave work to care for a dependent child or spouse. Cover features:

  • cover for self-employed, contractors, part-timers and casuals, subject to our eligibility conditions
  • up to 6 months per claim and a total of 12 months of during the period of cover
Show example

Example — redundancy

Cameron has Loan Protection with Unemployment and Carer Cover. Unfortunately, he is made redundant from his place of work, and remains unemployed for 7 months. LFI pays Cameron’s loan repayments for each day Cameron is unemployed up to the limit of 6 months.

Hardship Handback Cover

Hardship Handback Cover helps you to discharge your motor loan if you have been unemployed for 7 months and you can’t meet repayments from income or savings. Hardship Handback Cover pays your lender the difference between the amount needed to repay your loan and the value of your vehicle, less any unpaid premium.

As Hardship Handback Cover is designed to help you finalise your loan, payment of a hardship vehicle handback benefit will end your Policy.

We do not guarantee that a hardship handback benefit will be sufficient to enable you to finalise your motor loan.

Show example

Example — Long term unemployment

Asim, who has a motor loan, lost his job and we have paid his lender the limit of 6 monthly unemployment benefits. A month later, Asim still has not found work and cannot afford to keep his car. Asim needs $15,000 to pay off his motor loan and his car is worth $10,000. Asim claims for Hardship Handback Cover and we pay his Lender $4,400, being the difference between the amount Asim needs to repay his motor loan and the market value of his vehicle, less Asim’s unpaid premiums of $600. Asim’s loan protection Insurance ends.

Asim can negotiate with his lender to accept the return of his car or to allow him to sell the car privately to pay off the rest of his loan. Alternatively, as Asim is ahead in repayments, he could decide to keep the car longer while he keeps searching for work.

How to apply

After you apply for your MoneyPlace loan, if eligible, you will be given an indicative estimate for Loan Protection Insurance from LFI. If you would like to find out more, MoneyPlace will forward your details to LFI who will contact you.

Loan Protection Insurance is entirely optional, and has no influence on loan approval or interest rate.

Apply for your loan

Apply for your MoneyPlace loan. Loan Protection Insurance is optional and has no influence on your loan approval or interest rate.

Get approved

Once you have completed your application it typically takes just one business day to receive your approved loan offer. Decide if you are happy and want to accept your loan offer.

See insurance estimate

If you are eligible, you’ll be shown an indicative estimate of the cost of Loan Protection, and asked if you are interested in finding out more.

LFI contacts you

The LFI team will contact you shortly after your loan is funded, to discuss your Loan Protection options and complete your application.

You will have a cooling off period during the first 21 days of the Period of Cover.

Frequently asked questions

How do I apply?

First you must apply for and accept your MoneyPlace loan. If you are eligible, you will be shown an indicative estimate for insurance directly after you accept your loan offer. At that point if you are interested in finding out more LFI will contact you directly to explain your options and complete your application.

Can I choose my own cover?

There are two main options you may choose from, which are to take out either Disability Cover — which includes Life Changing Illness Cover — or All Available Cover — which adds Unemployment and Carer Cover and Hardship Handback Cover.

How much does it cost?

You only pay for the benefits that are relevant to you when you apply. If a benefit becomes relevant during the policy term, you are able to claim regardless of whether you paid for it. For example:

Life Changing Illness Cover
If you are 30 years old or under when you apply, you won’t pay for Life Changing Illness Cover, though you will still be covered if you contract a Life Changing Illness during your policy term.

Carer Cover
If you have no dependents when you apply you won’t pay for Carer Cover, though you will still be covered if you need to leave work to care for a dependent spouse or child during your policy term.

Hardship Handback
If your loan is not for a vehicle, you won’t pay for Hardship Handback, and Hardship Handback will not become relevant to you.

What happens if I change my mind?

If you change your mind, you may still take out insurance up to 60 days after you accept your loan offer.

A 21-day cooling off period applies. During the cooling off period you can cancel your Policy for a full refund of any premium you have paid (unless you make a claim during the cooling off period).

After the cooling off period you may cancel your policy at any time.

Who is LFI?

LFI Group Pty Ltd ABN 31 138 903 581 AFSL 413613 is a specialist insurer authorised to provide general insurance in Australia.

LFI is an authorised general insurance company, acting under its own Australian Financial Services Licence. It is the issuer of LFI Loan Protection insurance.

How do I make a claim?

To make a claim, phone the LFI team on 1300 888 318. They will provide you with a claim form and instructions for any additional information required in order to assess your claim.

Policy documents

Important: it’s up to you to decide whether Loan Protection Insurance suits your circumstances. The Product Disclosure Statement (PDS) can help you with this:

Download PDS

To find out more about us and the financial services we provide, you can access our Financial Services Guide.

View our Target Market Determination online, or by phoning us on 1300 888 318.

Contact LFI

To find out more about Loan Protection Insurance, confirm details of your policy or to make a claim, contact LFI on: