Adding income protection on top of your loan ?

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Henry Adams
Member
@henry-adams
Join Date: 2011
Post Count: 105
November 29, 2011 - 10:33 pm
Hi All,
I wonder if this is the correct way for having income protection insurance ?
I’ve been offered by Bankwest as part of my investment loan income protection for the duration of 5 years in total of $ 5400 over 5 yrs with the monthly repayment of $159. So that amount of $5400 will be added on top of my loan.
my question is, does that $159 tax deductible ? or this is not really worthed to try on ?
any advice would be greatly appreciated.
Thanks.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 29, 2011 - 10:38 pm
Its possibly tax deductible, and so are the proceeds if paid out.
If it is added to the loan you will be paying interest on it too.
But that sounds like a high premium so I suggest you get another quote.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Henry Adams
Member
@henry-adams
Join Date: 2011
Post Count: 105
November 29, 2011 - 10:51 pm
Wow, thanks Terry for the fast reply, it only covers $4000 limit per month with no more than 6 benefits payments per claim within 12 month period.
Henry Adams
Member
@henry-adams
Join Date: 2011
Post Count: 105
November 29, 2011 - 10:55 pm
on second thought, yes you’re right Terry, it will attracts interest for the monthly payment for my existing IP monthly payment.
You saved my $5400 this time
So I’ll be hunting around in the following URL:
http://www.ratedetective.com.au/insurance/income-protection
http://www.canstar.com.au/life-insurance/compare/income-protection-level-young-professional-male/
cheers !