All Topics / Finance / Credit Protection Insurance – Is it worth having?

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  • Profile photo of Smm91Smm91
    Join Date: 2012
    Post Count: 5

    I've signed the contract to build my first IP. This property is supposed to be positive cash flow property with about 9.5% yield. I am getting the loan from Bankwest and they are offering me some Credit Protection products. I don't have any life insurance or any other income protection insurance. I was wondering if it would be a good idea to spend the addtional money on premium if the property is going to be positive cashflow. My job is pretty secured. If the property can pay for itself, should i pay any extra money for any insurance just in case i get into an accident? What do the resident experts think?

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    Might work out cheaper to get income protection insurance.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of Paul DobsonPaul Dobson
    Join Date: 2003
    Post Count: 1,196

    Hi Smm91

    Whether it's income protection insurance or mortgage protection insurance, if it were me, I'd make sure I had some type of insurance to cover you.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of jonmardelljonmardell
    Join Date: 2010
    Post Count: 20

    i would agree that you need some type of protection. whether it be life, income protection or loan protection. Best to speak to your financial adviser and get some quotes from different sources.

    Profile photo of Shiny_Suit_ManShiny_Suit_Man
    Join Date: 2012
    Post Count: 54

    I’ve recently gone and taken out both life insurance and income protection. I went through a financial advisor and he was fantastic, i work in an industry that is difficult to get coverage for. I ended up being referred to him through my Mortgage Broker who informed me that they are obligated to offer to have life insurance/income protection as part of your documentation. Although at the end of the day its up to you, they have to offer you protection. Up until a few months ago i never bothered as it was “too hard” and i never really had any dependants, but after going through the advisor and having him put together a fantastic deal i’m glad that now I’m covered, especially when i’m planning on really growing my portfolio over the next few years and would like my family to be protected should something happen to me.

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