Insurance, insurance and insurance

[Singo]

Hi all, it is sad to read a few threads about people without much insurances falling ill etc. Other than a 50K life insurance through super, I do have building insurances for all our properties and third party insurances for vehicles but don't have any personal insurances at all and want to get them asap. I almost booked an appointment with Comminsure today but want to access the collective knowledge of the forum before selecting policies.

What sort of insurance policies should be selected by investors?

1. Life insurance - Enough to pay off all investment loans?
2. TPD - Enough to pay off investment loans and some more for medical treatments etc? If more how much more?
3. Income Protection - 75% of income?
4. Health insurance - what sort of health insurance should be selected? Any examples? Which providers?
5. Car insurance - At least third party insurance but preferably full insurance?
6. Home and contents - Both if living in ppor; Contents only if renting?
7. Any other insurances - Are insurances like bill protect, loan protect, critical illness cover etc needed? (For example, if we have health insurance is critical illness cover needed?)

You may share what sort of insurances you have as well as that information will be useful as well.

 

[HD_ACE]

Life and tpd should be at a level to cover alot of the debt you hold so that all your propertys and bills will be taken care of and enough rent etc to live off.

Income make sure its payed until your 65 and not just one or two years. You can alter the waiting period 30,60,90 days etc to bring down premiums.

Look into what insurances will be benificual inside super to aid cashflow but beaware of the rules on paying them out for a claim etc.

Best to talk to an insurance broker as so many options and catches to be aware of for your personal situation.

But a serious investor building a portfolio definatly needs them all.
Risk mitigation.

Lots of threads on them already also.

Cheers

 

[kero]

my personal thoughts on dot points 1 to 3:

1. Life Insurance- if I could turn back time, I would insure a bit more than my current portfolio. Went for a sleep study and got diagnosed with mild sleep apnea and when I wanted to increase my cover, my premiums shot up (compared with no sleep apnea). they also wanted me to exclude any neck injuries when I informed them of my visits to a chiropractor and physiotherapist. I refused of course. So next step was to go elsewhere to cover stuff this insurance coy wont cover, if I still want to increase my cover.

2. TPD- costly but worth it. Though income protection helps, TPD helps a lot with upfront cost, scans and checks not covered by Medicare and private health insurers. CT or PET scans or radiotherapy is not cheap.

3. Income protection- agree with HD_ACE. cover up to 65 years old. unless you have a huge reserve e.g. savings, then consider choosing the 30 days waiting period. again, costly.

 

[Sean M]

Hi Singo

You ask some great questions.

Life/ TPd/ IP and Trauma are all important and they all do different things. Speak to an financial advisor you trust to provide you with recommendations on how you much need and get the right cover in.

If you are cashed up with little or no debt you have to work out the opportunity cost of getting cover vs not having it.

Also important to know is that sometimes given your health, age, history you may not even get cover or its unaffordable.

In relation to what insurance is most important, I would say what is your biggest asset? That is your income if your employed. That is how you pay the bills think about what would happen if you were unable to work.