Credit Protection Insurance - Is it worth having?

Viewing 5 posts - 1 through 5 (of 5 total)

Smm91
Member
@smm91
Join Date: 2012
Post Count: 5
June 1, 2012 - 6:32 am
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?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 1, 2012 - 11:46 pm
Might work out cheaper to get income protection insurance.
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
Paul Dobson
Participant
@pauldobson
Join Date: 2003
Post Count: 1,196
June 4, 2012 - 1:55 pm
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
http://www.vendorfinanceinstitute.com.au
Email Me | Phone Me
An alternative way to finance your home.
jonmardell
Member
@jonmardell
Join Date: 2010
Post Count: 20
June 18, 2012 - 6:52 am
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.
Shiny_Suit_Man
Participant
@shiny_suit_man
Join Date: 2012
Post Count: 54
June 19, 2012 - 2:22 am
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.