Jump to content
Loan insurance through bank
4 replies to this topic
Posted 09 November 2012 - 10:14 AM
Do you have insurance on your home loan through the bank?
We have insurance to cover death and loss of job etc. but it's costing a small fortune every month as we have our home loan and a personal loan split so 4 loans and 4 lots of insurance all up
We have a death benefit through superannuation that would cover the loans if one of us died. Do we still need the insurance for each individual loan?
Is it better to just get an income/ death insurance through a separate company that will cover all loans in one payment?
Posted 09 November 2012 - 10:23 AM
I advise you to keep it. My parents had insurance on their homeloan and cancelled it because they thought they were paying so much money for nothing. Two months after they cancelled it My dad went to the doctor and was diagnosed with terminal liver cancer. When he passed all my mum had was the separate life insurance. Which wasn't enough to set her up till retirement. When this happened my parents were mid 50's. Ever since I've made sure to have loan and income protection insurance. Just because unfortunately you never know what's around the next corner.
Perhaps you could ring and ask for a discount on the insurance. Im wit NAB and thought id give it a go. Due to having my home loan, car loan and credit card insurance all with them they gave me a 15% discount on each policy. Worth asking i think
Posted 09 November 2012 - 10:30 AM
Also, I think the premiums you pay are tax deductible?
But it's always worth shopping around and comparing cover vs prices....
Posted 09 November 2012 - 10:34 AM
Depends what it covers, and in the end what risk you want to bear and how much you want to pay to cover it is up to you. Being underinsured can end badly, being overinsured can cost you a lot of money over your lifetime and end up never being needed.
It also depends on what the terms are that the loan insurance would pay out on, vs your life/income protection insurance.
For me personally, I would do life and income protection insurance and skip the loan insurance, unless the loan insurance was significantly cheaper or covered more situations. Mainly because the life/income protection insurance a) covers you in general regardless of how much is left on your loan, and you can factor the loan amount into it, and b) I believe that it's beneficial to get adequate life insurance while you are young and healthy because it becomes hard to get into if/when you are diagnosed with illnesses, so it's more of a long term plan than a short term duration of the loan thing. Obviously this only holds if the life/income protection insurance IS high enough to allow for paying back the loan.
I think of loan insurance as something that really protects the bank more than it does you.
But like I said, that depends on the costs and the terms of it - only you can decide.
Posted 09 November 2012 - 10:39 AM
You could get another policy which is the lump sum of all 4 loans (there are normally large sum discounts built into policies. EG: $250K may cost $40 a month but $500K may only cost $60 a month)
We didn't need insurance as our loan did not put us into the "must need" category. We did get it though as I think it is stupid to not have it (but I work in insurance) For each of us there is enough to pay out debt and have some left over, we could then either buy an investmant outright (so get rental income) or we could just live off x amount.
You will not find insurance outside of the bank that will cover loss of job for reasons other then sickness or injury (from my experience). I have this on my CC cards and had it on my personal loan when I was single and before I actually had life insurance or Trauma insurance or income protection. We choose not to take this out with our mortgage BUT we can put our mortgage on hold due to loss of employment.
You would have to talk to your bank about whether you would be able to cancel the Life isnurance part but keep the loss of income part. (Also investigate whether or not it is for loss of your job through anything other then sickness or injury)
If you cancel the life insurance you may have to provide a certificate of currency to the bank to prove you have the insurance that they require. Remember though that part of your death benefit in your super is made up of your actual Super so just make sure you are using the Death Benefit/Terminal Illness benefit and it hasn't automatically calulated the Super in. My does this but my DH's Super fund sets it out more easily to read.
1 user(s) are reading this topic
0 members, 1 guests, 0 anonymous users
Today, on White Ribbon Day - and every other day - we're teaching our son to say no to violence against women.
If there is one thing the owners of Tillings Cafe can be certain of, it is that the eatery won't win the award for Britain's best baby-friendly coffee shop any time soon.
A woman who admitted to dumping her newborn baby down a Sydney drain has reportedly been allowed to give him a name.
Are you feeling used up by life's stress, family problems and a demanding job you can't turn off? Many people are way beyond work-life exhaustion. They are functioning as robots.
The world's biggest chocolate-maker says we're running out of chocolate.
A baby who was born at 23 weeks has survived her first week of life outside the womb.
It might sound like temporary insanity, but almost obsessive nesting as you near your due date isn’t uncommon – even if you’re not usually a particularly clean person.
The baby found abandoned in a Sydney drain may have been alone for up to six days without being fed, leaving many asking how he could have survived.
A child's excitement at Christmas time is a beautiful thing, but one dad ponders whether his toddler daughter is getting into the festive mood a bit too soon.
A new experience is radically altering men's views of childbirth.
Italian police have placed 12 doctors under house arrest on suspicion of promoting baby milk formula over breastfeeding.
Cara Simmons arrived at work to clean a large and beautiful house in time for a party planned for that evening. It was soon hers.
Every now and then your child does or says something that is truly memorable.
A few weeks ago, some dear friends of mine had their first baby. As the proud dad texted me a picture I had to fight the natural instinct to say “Enjoy every moment!”
Footage of Australian babies and children sleeping in their bedrooms are among the images on a Russian site showing live feeds from thousands of homes and businesses around the world.
Was there really a man who was actually there by his wife’s side as she laboured and gave birth to his child, all while he was making what he perceived to be meaningful eye contact with a midwife?
Tantrum Trolls are a small but growing species of predatory bottom-feeders who delight in picking on parents at their most vulnerable.
The death of children, siblings, and parents has long term impacts on the rest of our lives.
Love has nothing to do with mental illness. But love may drive a mother to do something about it.
We have a beautiful seven-month-old son, and his allergy rules our life.
A transgender man who breastfed his first baby - despite having his breasts removed as part of his transformation from female to male - has now had a second child.
A Canadian couple were slammed with a million dollar medical bill after their daughter was prematurely during their babymoon.
One in every five dollars spent at supermarkets goes on cigarettes or junk food, according to industry data.
There is no doubt mums have a right to continue breastfeeding after they have returned to work, but one teacher in the US has taken it to the extreme.
We have 4 family passes to give away to see Disney Live! presents Three Classic Fairy Tales, touring Australia this December/January.
Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.
Top 5 Articles
To celebrate the release of PADDINGTON, we are giving five lucky winners the chance to win a family pass to the exclusive Australian Premiere in Sydney on December 7!
We were green and uninitiated, perhaps a little naïve when it came to the favourite toy responsibility.
She looks him up and down and then touches his chin, but baby Lindsey still isn't sure this clean-shaven man is her dad.
Medical experts say intense fitness routines can be done safely during pregnancy - if the mums-to-be follow some guidelines.
Are our hopes, dreams and expectations for our children what they really need?
Before even giving birth, Katie Myers' maternal instincts warned her something was wrong with her baby.
Some dads-to-be don't miss a beat when their partner is pregnant; others struggle with a range of issues and can become withdrawn, right when their support is needed most.
Katharine and Kris Camilli devised a clever trick to immortalise their family and friends' reactions to their exciting pregnancy news.
"After 30 years on television, I had become what I despised: a painted doll who spent an hour a day and close to $200 a week putting on a mask."
I am secure, confident and strong, but the responsibility of protecting my children can almost bring me undone.
There are so many ways in which parenthood changes us as women, but one of the most noticeable, for me, has been the changing state of my emotions.
Baby Maia was conceived against the odds, only to find she was sharing a womb with an ominous "foreign body".
They say dog is man's best friend, but this playful pooch seems to have chosen a jumping baby as her number one buddy.
New paernts can get frustrated when their newborn gets fussy and can't settle down. When you're feeling overwhelmed, try some of these simple tips to help soothe your baby.
The data-lovers at nameberry.com have been at it again – this time, they’ve discovered the names that are continually rising up the ranks, ready to take out some top spots in the next few years.
Ideally, you want to give food that isn’t expensive to make, isn't too difficult to create, and freezes well; stews, bakes, soups and pasta sauces are perfect.
Some pregnancy products come to market and are just awesome. Others just leave you scratching your head.
Two children who were given to the wrong families at birth will soon learn if they will be returned to their biological parents.
How many weeks til Christmas?
Get the "Santa" shopping done without the kids in tow.