Browse Forums Home Finance 1 Sep 04, 2009 12:18 pm Is it worth it? On average, i get quotes for things ranging from $30++ a month for mortgage protection. If say you're become redundant some pay up to 3 months your mortgage repayment and then you'll have to squabble your saving or whatever else you can find to survive until you can find another job. OR if you get Income Protection for some reason some provide 3 months pay too and up to 75% of ur income (which should have covered mortgage and living expenses). Anyone else took up any of these type of insurance offer? I understand this insurance is worth it for accidents, death, and disability or critical illness (some provide trauma covers too). But i'm also worried about redundancies... Being a young worker, we're the easiest and juiciest to target when they need to lean up their org structure. I assume Income protection insurance would be more expensive than just the mortgageprotection quotes ive been getting. Some goes up to about $100ish per month and more i heard... Any thoughts? Would love to hear what other people think... Or if they have some recommendations.. Thank you. Re: Mortgage Protection Insurance Vs Income Protection Insurance 2Sep 04, 2009 6:19 pm Anyone who couldn't continue to meet their needs if they couldn't work due to injury or illness (most people) need income protection insurance. Remember it is also tax deductible. Re: Mortgage Protection Insurance Vs Income Protection Insurance 3Sep 09, 2009 1:20 am In my opinion some form of Loan Protection Insurance is a must. The major Bank I work for offers it with it home loans as do a number of other banks. Look at it this way, if you own a car, you insure it, if you crash it it's covered. If you own a house you insure it, if it burns down it's covered. Why wouldn't you insure the debt you carry on the house. It's cheap at half the cost, if you lose your job involuntarily and you don't have sufficient resources to cover your loan repayments before you find another job, you could say goodbye to your hard earned equity.
It is not worth the risk not to insure it. If the policy covers your loan repayments while you are not working due to injury, trauma or loss of income from involuntary unemployment ( let's face it that just gets worse everyday) then you can't afford not to have it.
Re: Mortgage Protection Insurance Vs Income Protection Insurance 4Sep 09, 2009 2:00 pm I fully understand that these type of insurance is a must. Having that kind of safety net is important. At work, I see this type of insurance very often save the day for a lot of people. What i'm not sure about is... what is better? Mortgage Protection Insurance or Income protection Insurance? Is there any fundamental difference of principle between the two or is it just a matter of how much money you get if things hit the fan? Re: Mortgage Protection Insurance Vs Income Protection Insurance 5Sep 09, 2009 5:08 pm Mortgage Protection Insurance, covers the debt primarily and should not be confused with Lenders Mortgage Insurance which only covers the lender in the event of default. Mortgage Protection Insurance / Loan Protection Insurance call it what you will, takes care of the payments while you are out of work and is not generally a substitute for income in the event that you get sick or are out of work. That is what income protection is for. In my opinion both are a must, but policies differ between institutions so you should also ask the question what the Mortgage Protection Insurance covers and read the product disclosure statements that come with the policies very carefully. Re: Mortgage Protection Insurance Vs Income Protection Insurance 6Sep 09, 2009 7:04 pm Hi there, Income protection is a cover for all things as your income pays for everything you do. It is also something that can be tax deductable for some people. Mortgage protection only covers the mortgage debt it self. In this essence really income protection is more expensive because it is a more comprehensive cover, ie, your income Hope this helps you Re: Mortgage Protection Insurance Vs Income Protection Insurance 7Sep 09, 2009 7:15 pm Hi Haribeka. Given the option, what would you prefer? Hi Innovator. I'm aware of LMI and i don't have to have LMI through my bank because i'm borrowing less than 80% but yes i'm concern with income protection and/or mortgage protection insurance as explained by Haribeka. THe mortgage insurance only covers the repayment of your mortgage so u will have a house to live in, but it didn't cover the day to day expenses. i guess in this case the income protection insurance would be better.. of course that's probably why you're paying more premium... i'm just unsure about the worthiness of it.. maybe i'm just asking why is the sky blue? Re: Mortgage Protection Insurance Vs Income Protection Insurance 8Sep 09, 2009 7:24 pm Hi there, Like Innovator I am also a lending manager. I recommend loan protection if there is a low debt. Income protection or even Trauma insurnace is a better option as it can cover more eventualities. Income protection is simply that, protection of your income. Your income pays for your house, car, food, lifestyle, etc. much more important. Harribeka Re: Mortgage Protection Insurance Vs Income Protection Insurance 9Sep 09, 2009 9:25 pm Lending Managers - Just be careful about what you say. Dont want to give advice on a forum. We should know where ASIC stands on that. Novotel - Dont get advice from a forum on this. Ring your accountant to see if they are licesnced to give insurance advice or go down to your bank and speak to their advisor. There are some key differences between these insurances especially sourrounding benefit periods that you need to be told. Also get the Product Disclosure Docs. Re: Mortgage Protection Insurance Vs Income Protection Insurance 10Sep 09, 2009 10:20 pm elastic Novotel - Dont get advice from a forum on this. Ring your accountant to see if they are licesnced to give insurance advice or go down to your bank and speak to their advisor. There are some key differences between these insurances especially sourrounding benefit periods that you need to be told. Also get the Product Disclosure Docs. Lol elastic you made it all scary for me >.< But they had been helpful to me. Girl scout's honor. Anyway i did rang my bank and speak to the advisor and this being ANZ, he gave me a quote to cover my loan protection insurance and it's very steep. Worst steeper than when i asked for a quote from those online insurance quoting sites.. I also read the product disclosure documents of a few different insurances type (both from the income protection insurances, as well as mortgage protection insurance). I hate both of them. It just felt like throwing money away. Stepped premium etc etc. 5 years term. or Life term or 2 years term. Some only covers .. was it 20 months or 2 years if you're permanently disabled. For redundancies most only cover 90 days which is fair enough that being said... there are probably more i haven't read yet. Overall it gave me mixed feeling... and depressing. Re: Mortgage Protection Insurance Vs Income Protection Insurance 11Sep 10, 2009 9:31 pm First let me say, I have the qualifications to give the advice elastic, however that was not what I was trying to do, merely explain the difference between the cover types. If you require either, it depends on your personal situation as to which is best for you. Discuss it with whoever you are taking out your loan with to see which suits you. Bottom line, it sucks to pay for insurance.............. until you need to claim on it. Its like car insurance, there are so many options and hidden elements to it, but would you drive your car without it??? Some cover is better than no cover Re: Mortgage Protection Insurance Vs Income Protection Insurance 12Sep 11, 2009 7:46 pm I also can advise on cover but have only given factual information that is contained in any brochure on the products. The prices are a lot but when you pat $100 per month for foxtel or similar when something happens and you don't have any cover it can be very scary. I have seen this occur many times. Speak to the ANZ if they are your bank and ask for advice. Harribeka Re: Mortgage Protection Insurance Vs Income Protection Insurance 13Sep 11, 2009 8:44 pm We have income protection/trauma/death/partial or permenent disability insurance and I think it's great. Our financial advisor set this up for us and it comes out of our super, for now! And it's not as expensive as you may think! My advice would be to call a financial advisor and speak to them about what YOU need and can afford, this is the easiest way as they dealt with all the paperwork for us also and got it all done without much fuss. I would steer clear of banks for this sort of insurance, JMHO! Best of luck! Building Thread viewtopic.php?f=31&t=13002 Site start: 8th July 2009 Handover: 11/12/2009! 5 months total build time. 40 sqs of luxuary...Bliss! Re: Mortgage Protection Insurance Vs Income Protection Insurance 14Sep 11, 2009 9:05 pm Thanks for providing draft of people about mortgage. Re: Mortgage Protection Insurance Vs Income Protection Insurance 15Sep 13, 2009 7:41 am pinkfairymagic We have income protection/trauma/death/partial or permenent disability insurance and I think it's great. Our financial advisor set this up for us and it comes out of our super, for now! And it's not as expensive as you may think! My advice would be to call a financial advisor and speak to them about what YOU need and can afford, this is the easiest way as they dealt with all the paperwork for us also and got it all done without much fuss. I would steer clear of banks for this sort of insurance, JMHO! Best of luck! Hopefully you don't have the trauma insurance in your super. Yes, neither is termite damage that is not covered by your house insurance. 3 6592 Hi there, long-time lurker but first time posting. I've bought a house 2 and a bit years ago and last year we had some major water damage on a converted pergola area… 0 7936 |