Browse Forums Home Finance 1 Mar 30, 2009 3:16 pm So our Broker organised a 3 month free trial period for loan protection insurance with "Australian Life Insurance" issued by Tower. So I thought during their free period, i would shop around to see if we are able to get a cheaper policy elsewhere. Can anyone reccommend who to contact to get an quote? Our loan is going to be through CBA and as part of our package they offer a 5% discount off the loan protection insurance. I have spoken to CBA about 7 different times to organise an quote for Loan Protection Insurance. Every time someone tells me something different. But no one seems to be able to help. They told me they could not do one over the phone and to organise an appointment at a branch. But their hours didn't suit mine so it was looking quite impossible. I decided to take some annual leave so i could go in and get a quote. When i rang to make an appointment, they put me straight through to the Loan Protection guy who said i could get an estimate over the phone, however because i didn't have my policy with me (because everyone else said i couldnt get one over the phone, so i was just calling to make an appointment) he said he would call me back at 3.30pm today to go through a quote. He hasn't called. I work full time and study part time. My only time off is on a Sunday, my lunch breaks are only half an hour.. why are they making this so hard for me? I have invested way to much time on getting a quote with them.. and I'm thinking about just giving up. Can anyone reccomend anyone else to get a quote with? Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 2Mar 30, 2009 4:33 pm We have the same one as you, so I'm guessing you went through Choice Homeloans aswell? I rang a couple of other places (can't remember the names sorry, was out of the phone book) and they are all about the same. Did you know that at the end of the 3 mth period you can reduce the level of the cover if you want to? This will reduce the monthly premium, of course. At the moment we have 2 loans so once we sell our existing house we will cancel the policy as we will no longer need it. However, if you plan to keep it permanently then it pays to shop around if you think the premium is high. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan Protection Insurance - Help? 3Mar 30, 2009 4:55 pm Hels_n_Greg We have the same one as you, so I'm guessing you went through Choice Homeloans aswell? I rang a couple of other places (can't remember the names sorry, was out of the phone book) and they are all about the same. Did you know that at the end of the 3 mth period you can reduce the level of the cover if you want to? This will reduce the monthly premium, of course. At the moment we have 2 loans so once we sell our existing house we will cancel the policy as we will no longer need it. However, if you plan to keep it permanently then it pays to shop around if you think the premium is high. Yep, we went through Choice. I was hoping for a better premium.. but I also just wanted everything to be with the bank to make it easier.. but apparently its not easy, it's a full time job to even get someone to speak to you. Thanks for the advice though, good to see it's pretty similar to everyone else. Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 4Mar 30, 2009 6:46 pm Hi Erin We were offered the same thing (we didn't go through Choice). We are going to cancel ours when 3mth up. The reason is the cost. It is charging us nearly $100pm for the cover. It covers you in death only, except if diagnosed as terminal in certain illneses. This is a very restrictive cover, for $100pm, no thanks. We have life insurance which costs us $40pm and gives us heaps more than just the loan if the worst scenario happens. I don't know what you are paying, but I suggest you look at life insurance or TPD insurance (attached). you say you are working, well if you ring your superannuation company I bet they offer an insurance package. They will deduct the premiums from your super if you are cash tight too (or you can pay by direct debit). Definitely talk to a few insurance people (eg AMP, ING, Allianz) before you make your mind up. Let us know how you go! Annie A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Loan Protection Insurance - Help? 5Apr 01, 2009 11:52 am Annietom Hi Erin We were offered the same thing (we didn't go through Choice). We are going to cancel ours when 3mth up. The reason is the cost. It is charging us nearly $100pm for the cover. It covers you in death only, except if diagnosed as terminal in certain illneses. This is a very restrictive cover, for $100pm, no thanks. We have life insurance which costs us $40pm and gives us heaps more than just the loan if the worst scenario happens. I don't know what you are paying, but I suggest you look at life insurance or TPD insurance (attached). you say you are working, well if you ring your superannuation company I bet they offer an insurance package. They will deduct the premiums from your super if you are cash tight too (or you can pay by direct debit). Definitely talk to a few insurance people (eg AMP, ING, Allianz) before you make your mind up. Let us know how you go! Annie Thanks Annie! Really helpful info. I always like to shop around, so hopefully i'll find something better suited out there. Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 6Apr 01, 2009 4:11 pm Hi, Personally I would (and have) take out income protection insurance instead. It is much more flexible and gives you coverage in many circumstances if you are off work and pays more than just the mortgage. My ex wife and I both took it out and have made several claims and it was a life saver - wouldn't be without it. I'm with Asteron as my original policy was with Tyndall whom Asteron bought out. I think the personal investor magazine or similar mag does a review of the policies and which one is best every year. Dale. Building the Monaco 32 with Carlisle Homes Check out our blog for photos and progress reports: http://www.beigefreehouse.blogspot.com . Re: Loan Protection Insurance - Help? 7Apr 01, 2009 4:25 pm Isn't 'loan protection insurance' just a mortgage brokers way of saying 'life insurance'? Ask yourself what sort of insurance do you get through your super? A lot of super funds have IP also. If it were me, I'd apply for higher units of cover through my super to ensure my loan is adequately insured, that way I'd have better cash flow during my build and moving in process (which I need - can't afford the $100 a month out of my pocket but I don't notice it if its coming out of super). From a financial planning point of view, I'm probably doing the wrong thing long term, but its all about my needs now and I need to put it all into the house. I'm pretty sure Mortgage Brokers get wicked comm's through setting up your 'loan insurance' as well as finding your loan! ICK So glad the building is over, never again. Loooove our house, but still not quite sure it was worth all of the stress they put us through! Re: Loan Protection Insurance - Help? 8Apr 01, 2009 6:33 pm Do most people take out loan protection insurance?? Anyway when we have applied for loans thru the credit union we were informed that it is the legal responsibility of the financial institution to make sure you are aware of your right to take this out and that you have considered it. I think I even had to sign a form to this effect. Obviously you don't have to take it through them though or you can decline to take it at all - which we did. Re: Loan Protection Insurance - Help? 9Apr 01, 2009 6:41 pm Helyn Do most people take out loan protection insurance?? Anyway when we have applied for loans thru the credit union we were informed that it is the legal responsibility of the financial institution to make sure you are aware of your right to take this out and that you have considered it. I think I even had to sign a form to this effect. Obviously you don't have to take it through them though or you can decline to take it at all - which we did. I had to sign something to say they offered it to me - I refused it also 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Loan Protection Insurance - Help? 10Apr 01, 2009 8:25 pm We accepted it due to the first 3 months being free, and we also have 2 mortgages whilst we build and that's A LOT of debt But we do also have a policy with MLC so we are only covering the difference and will close down the Tower one when we go back to 1 mortgage. I think it's good to have it for peace of mind. There is no way I could ever meet the mortgage repayments by myself. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan Protection Insurance - Help? 11Apr 05, 2009 1:55 am Helyn Do most people take out loan protection insurance?? Anyway when we have applied for loans thru the credit union we were informed that it is the legal responsibility of the financial institution to make sure you are aware of your right to take this out and that you have considered it. I think I even had to sign a form to this effect. Obviously you don't have to take it through them though or you can decline to take it at all - which we did. There are different versions of loan protection insurance, most of those discussed here so far cover against death and serious disability. Another type is income protection against unemployment (eg. redundancy) which has got a patchy track record in terms of payments. Re: Loan Protection Insurance - Help? 12Apr 06, 2009 11:35 am thlo Helyn Do most people take out loan protection insurance?? Anyway when we have applied for loans thru the credit union we were informed that it is the legal responsibility of the financial institution to make sure you are aware of your right to take this out and that you have considered it. I think I even had to sign a form to this effect. Obviously you don't have to take it through them though or you can decline to take it at all - which we did. There are different versions of loan protection insurance, most of those discussed here so far cover against death and serious disability. Another type is income protection against unemployment (eg. redundancy) which has got a patchy track record in terms of payments. Thanks, we do want some form of cover, i'm quite happy with the free period, however it expires in may, so we want to make sure we have something else in place before that. I doubt me or my partner will lose our jobs, both are fairly secure and still required during the economic crisis. He works with bread and i work with insurance. It's more so just cover if one of us falls ill or injures ourselves and we are unable to work. I'll keep looking! Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 13Apr 06, 2009 2:28 pm If you work in insurance, isn't there an affiliated product that you can look into? Re: Loan Protection Insurance - Help? 14Apr 06, 2009 3:03 pm thlo If you work in insurance, isn't there an affiliated product that you can look into? We only work with home/car/business. Not loan protection/life/income/health insurance. I still have no clue on those subjects. We do refer customers to a paticular provider, but there a no discounts or anything of that nature. It's just a referral system. So while i can check them out, it would be just the same as checking out any other company offering the product. If that makes sense? Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 15Apr 06, 2009 4:43 pm Yep, that makes sense. Insurance is a highly specialised area. Re: Loan Protection Insurance - Help? 16Apr 06, 2009 5:30 pm Hmm.. Well i found a website that can compare SOME of the income protection insurance covers out there. The other comparitive quotes were from Aviva, AXA and Tower (who the current 3 month free is with) And suprise suprise the cheapest option was actually Comminsure. It's only an extra $8 then what the life insurance policy was asking for. However it's a completely different cover, so i'm not actually comparing 'apples to apples' but i think it's better suited to what i want and need. And i'll get a discount because of the home loan package i have. And reading further on, i've learnt that its tax deductable. WOO HOO. So it's really cheaper then the life insurance after the tax deduction. Now all i have to do.. is find some time to go see someone at CBA so i can thouroughly discuss my option and the cover. This part I am dreading. Thanks for everyones help though. =) Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Loan Protection Insurance - Help? 17Apr 06, 2009 7:23 pm Good to hear that you have found something suitable for your situation Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19097 Yes, neither is termite damage that is not covered by your house insurance. 3 6581 |