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Mortgage Protection Insurance

Discussion in 'General Property Chat' started by pinewood, 14th Jun, 2016.

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  1. pinewood

    pinewood Well-Known Member

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    Hello fellow investors,

    I am wondering if many of you have Mortgage Protection Insurance and is it common for property investors to have? Can anyone recommend any particular insurer? I am thinking it may be something to consider. Would appreciate any advice.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Our experience is that you can get much better coverage for marginally more cost of you are an average risk by going the income protection/trauma route

    Ta
    Rolf
     
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  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Agreed. There's a lot more value in considering your overall risk protection through income/trauma/TPD/life than the usual bank bank MPI, particularly if underwritten than a no medical generic policy.
     
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  4. Shankiedoodle

    Shankiedoodle Well-Known Member

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    Plus Income Protection is tax deductible. Mortgage insurance.. im not too sure
     
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  5. pinewood

    pinewood Well-Known Member

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    Thanks for all your comments. My understanding of income protection is you are covered only if you are unable to work e.g disability whereas mortgage protection insurance covers for loss of job. E.g. if I lose my job I can have my mortgage payments covered with Mortgage protection but if I lose my job and I have income protection that won't help me at all for mortgage repayments.
     
  6. dabbler

    dabbler Well-Known Member

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    I do not have it, so not up on all of this, but if you have income protection and you lose your job, you claim on that ground, then disperse the money as you usually would do, no ?
     
  7. pinewood

    pinewood Well-Known Member

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    @dabbler , I don't know but from what I have read about income protection you can only claim if you are unable to work due to illness or injury so can't claim if you are made redundant or fired.
     
  8. dabbler

    dabbler Well-Known Member

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    Yeah, I am not up on it, maybe others know, maybe different companies different policies too.

    I would think redundant or loss of job through no fault of your own should be legit....

    Applying for insurance after your second formal warning then doing something stupid to get sacked, or purposely becoming un employed would not.

    I think same would likely apply to mortgage insurance.
     
  9. Brady

    Brady Well-Known Member

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    Mortgage Protection Insurance / Loan Protection Insurance.... usually find that it's better than nothing, but in just about all cases will find better coverage/cost through a tailored Income Protection/Life/TPD/Trauma policy.