Hi,
I just bought a property and was wondering what are the normal/effective ways to manage the risk of loan repayment. Should I look at getting a life insurance, income protection insurance, etc?
I'm just worried in the event something happens to me, e.g. major illness, death, etc, how I could make sure that there'll be sufficient funds to take care of the remaining loan so that my partner could still live in the property?
Thanks.
xya
Income protection insurance will only cover income lost from not being able to work ie salary, commissions or drawings it will not cover any incapacity to manage the property.
Consider boosting your life insurance through your superfund (more tax effective apparently)/make addit salary sacrifice to cover it or if you are in a low tax bracket an after tax contribution to get the govt co-contribution.
Thanks, I'll look into my superfund to see if I could increase my insurance cover.
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