Insurance - Income Protection or Mortgage Repayment Protecti

FunkyQ · Happily Married Joined: 16 Jan 2009 Posts: 670

Hi all,

Now that we've bought another place we need to organise additional insurance. I've previously had mortgage repayment insurance but am wondering if Income protection is the better way to go and if there is a massive difference in price? What have you gone with?
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Loulou · Wedding Chatterbox Joined: 28 Oct 2007 Posts: 196

I don't have either of those but logically, if you have income protection, wouldn't that pay enough for your mortgage & other bills & living expenses. Mortgage insurance would (I'm guessing) just pay the mortgage...
If you needed to use it, that would suggest you have lost your job = need to pay more than just the mortgage.
Can you get income protection through your Super?

FunkyQ · Happily Married Joined: 16 Jan 2009 Posts: 670

I just discovered I've got income protection through my super but we'll need to organise some for H2B. They generally also cover illness as well.
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KateX · Posted: Tue Mar 09, 2010 12:16 pm Post subject:

We have death disability and unemployment insurance on our home loan. It was about $2 extra but its better to be safe than sorry!
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kimmykak · Posted: Wed Mar 10, 2010 9:56 am Post subject:

I'm looking into that at the moment and from what I can gather income protection is a lot more that MPI. You are covered for a lot more as a result though. Our MPI only covers us for a set figure, so if something happened we could pay our mortgage but not our investment properties and we would not receive a monthly income. We may be able to get MPI for our investments as well though? Not sure. Sorry, thinking out loud!
Income protection would cover lost income for as long as necessary (depending on your level of cover). I am still waiting on a quote but I have asked to be covered to pay out our mortgages if anything should happen to DH and still have a monthly income. I only work part time so my income would not be nearly enough to live on!
Generally I think you see a financial planner for advice on income protection. They are like brokers so can find you the best deal. I saw a couple of 'agents' and they only represented one company.
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Ames · Posted: Thu Mar 11, 2010 10:23 am Post subject:

given the choice, always go for income protection! it covers you for a lot more. Thumbs up

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KateX · Posted: Sat Mar 13, 2010 6:12 pm Post subject:

oh opps just read my post again and I meant to say it was $2k extra over the life of the loan!
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