Have you got Loan Protection against loss of employement/disabilities?

Discussion in 'Property Finance' started by Edmond Dantes, 9th Oct, 2008.

  1. Edmond Dantes

    Edmond Dantes Member

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    Hi all,

    I've been shopping around for loan protection insurances but haven't read anything here in the forum threads. What companies do you use? I have a booklet from commonwealth bank which I'm going through, but I need more options to compare.

    Any suggestions?
     
  2. wylie

    wylie Member

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    Why not call a broker and let him to the shopping around for you.

    From the personal experience of somebody I know who has been "on claim" for 15 years.......

    1. Find a company that will not insist on you doing "any" type of work. You might normally be a CEO but some insurance companies will insist that you may not be able to do your usual job, but make you do ANY job you are capable of.

    2. Check how long before the insurance kicks in. In our case, because hubby has lots of sick leave available, we chose a six months lead time, which lowered our premium substantially.

    3. Go for the "Rolls Royce" of policies. If you ever have to use it you will be thankful and it is tax deductible.
     
  3. steveadl

    steveadl Member

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    Loss of employment, no. Disability, yes out of pocket - not sure I need it, but what the hell, isn't that expensive after tax deduction. Life, yes through superannuation.

    Had it all set up for me by my FP.
     
  4. Spectre

    Spectre Member

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    If we are talking about the same 'insurance' here...

    loan protection is the basic policy that cba sell - usually say by their branch staff when taking out a home or personal loan. I used to sell a fair whack of it back in the day.

    While we still can 'sell' it through referral to the branch, we have been using the MLC product a bit more. This is due to we can claim a proportion of the premium for tax so it can be more appealing, and the MLC product isnt bank specific - so it isnt the same as the cba one where you have to have a loan with cba to get this loan protection (LP).

    What we used to do is get people in, take the LP then flip them to the planner to do the better policy and then cancel the LP once it was finalised.

    Since I left the bank we've been using independent planners or insurance multiagents to set them up (i.e. not bank ones). Main reason being is they still have access to the Colonial products but others as well which are often better suited for your needs.

    So IMO I think its something you need good advice on as well as someone who has the ability to sell more than one product - just like a MB does!

    I think something is better than nothing - people insure cars, boats, houses but not themselves. Its something they should do but dont as they'd rather spend their money on a carton of grog a week rather than protect their assets and lifestyle.

    blah blah blah...
     
  5. Alex P Keaton

    Alex P Keaton Member

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    Last edited: 11th Oct, 2008
  6. stargazer

    stargazer Member

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    Why not just set up a LOC and let it sit just in case save a lot of monthly insurance premiums.

    Cheers
    BC
     
  7. wylie

    wylie Member

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    My acquaintance who has been paid by the insurance company for 15 years would disagree :).
     
  8. steveadl

    steveadl Member

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    I don't know about income insurance, but as far as my disability insurance goes it's not that expensive. About $1k per year which is then tax deductible.

    My life insurance is inside my super so doesn't cost anything out of pocket.
     
  9. Pushka

    Pushka Member

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    Hubby has income protection Insurance but not loss of employment. Probably cant even get it for self employed people! He also has Critical Cover - eg for a heart attack/stroke/cancer diagnosis etc etc. We both have Life Insurance. Insurance is an absolute must for us and we never begrudge a cent we pay. You see, just 6 months after we married, hubby was diagnosed with the same cancer as Lance Armstrong, but back in the late 70's. He too returned to sport, representing SA for several years in his chosen sport.
     
  10. buzzlightyear

    buzzlightyear Member

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    Looking at finalising a complete TPD, Life & Income Protection insurance package. Am doing it through a speacialist insurance broker. It has been an eye opener with regards to how to potentially structure your insurance in context of your financial commitments, personal / family circumstances, risk aversion and the range of options / products out there.

    If you use a mortgage broker for your finance, there is just as valid reason (and maybe even more-so) to utilise the services of someone who can independently assess what are the best solutions out there with regards to insurance.

    For me, the package will cost in the vicnity of ~$3k per annum. If you look at the totality of what its protecting, it is very inexpensive relative to the more normal insurance that people generally purchase eg car insurance
     
    josko likes this.
  11. josko

    josko BluePlanet-Green Shackles

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    We both have Income Protection - Serious Illness (ie Cancer), etc, and Death- and TPD Insurance.

    I have a close friend who had Cancer and was very thankful for her Insurance. She was only 29 yrs old too!

    Regards JO
     
  12. josko

    josko BluePlanet-Green Shackles

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    Good on you Buzz!:):)

    Rgerad sJO