For many Australians, home ownership is a dream. But your ability to keep your family’s home depends on your ability to pay your mortgage. So, what if something goes wrong?

Homeownership. It’s the great Australian dream.

For many Australians, it’s one that still comes true. A place to call home and create memories. But unless you’re incredibly fortunate, buying your own home means taking out a significant loan – likely the biggest debt of your life.

And if that debt isn’t protected, the Great Aussie Dream can turn into the Great Aussie Nightmare.

Understanding your debt

In June 2025, the average home loan amount for owner-occupiers was $678,00¹. Compare that to an average annual salary of approximately $100,000 and the scale of that debt becomes clear².

While it’s a productive debt – one that can earn capital gains over time – it’s also a long-term responsibility. Repaying it over 20, 25, or 30 years may feel manageable, but only if your income remains steady.

And that’s not always guaranteed.

What if something goes wrong?

A serious injury or illness that prevents you from working. In more extreme cases, death could leave your partner to keep up the repayments.

It’s a scenario that isn’t beyond the realms of possibility, yet only one third of Australians have personal life insurance³, while only 27% take out income protection⁴.

Major life events – like having children or buying property – often prompt people to consider life insurance. And for good reasons.

If the worst happens, Life Cover, Total and Permanent Disability (TPD) insurance, and Critical Illness cover may help pay off your mortgage in full, giving your family one less thing to worry about. Income Protection (IP) can also provide a monthly benefit to assist with mortgage payments while you’re unable to work due to injury or illness.

Thinking your super cover is enough?

As of 2020, 70% of all life insurance policies were held within superannuation funds⁵. However, research has also shown that the median level of life cover held meets only 37% of the needs of Australian families with children⁶, meaning you and your family might face serious financial difficulties if you become unable to work – or are suddenly no longer around.

What you can do

Checking in with your financial adviser regularly is a simple way to make sure your cover still fits your life.

Whether you’ve just bought a home, started a family, or experienced a change in income, having the right protection in place can help you hold onto the dream of homeownership – with confidence and peace of mind.

¹ _{https://www.eemortgagebroker.com.au/property/home-loan-statistics-australia/}

² _{https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/average-weekly-earnings-australia/latest-release}

³ _{https://www.afr.com/wealth/personal-finance/life-insurance-is-still-a-super-idea-20250728-p5mia0}

⁴ _{https://www.experien.com.au/australia-trails-on-life-cover-penetration/}

⁵ _{https://www.apra.gov.au/life-insurance-superannuation-improving-outcomes-for-members#:~:text=Consequently%2C%20almost%2070%20per%20cent%20of%20Australians,paid%20in%20insurance%20claims%20to%20superannuation%20members}

⁶ _{https://empowerwealth.com.au/blog/myths-facts-insurance/}