"We've got clients every day that will be settling large loans; when you take out a loan that size, you want to make sure you're protected," YBR chief executive Matt Lawler said.

"We've been concentrating on the acquisitions more recently ... and our mortgage strategy [partnering with companies such as Macquarie Group]. We have built strong branch and broker channels and with our scale, the timing is right to accelerate distribution of a high-quality, white-labelled insurance product."

​The deal comes after YBR bought mortgage aggregator Vow Financial Holdings for $17.6 million last year.

Mark Bouris, executive chairman of Yellow Brick Road, said Australians still lacked insurance to repay their mortgages if something unexpected happens.

"When a person secures a mortgage, it is generally the biggest debt they will take on in their life. A core part of our business at Yellow Brick Road is to provide our customers with protection against the unexpected," he said.