Hi all
Was doing some bills etc the other day and noticed i am paying nearly $90 dollars a month for life insurance.
Initially it was taken out in case something happened and our IP was 105%LVR.
Now the IP is 80% LVR and if something happened could sell to cover loan etc.
I would like to as the experienced investors opinions do you think life insurance is a necessity. It does get bloody costly when you add
income protection insurance
health insurance etc etc.Life insurance is not tax deductible either.
Any thoughts?
Cheers
SGInsurance is one of those products that you can not buy when you need it. Only you can say if it is worth it for you. I found the least expensive way to buy life insurance was through the superannuation fund I have to contribute to.
My life insurance is deductible. The beneficiary is my company which holds my assets and the company pays for it.
I believe it is invaluable if set correctly. My level of insurance is set (and changes accordingly) to cover all my debts, so my estate receives all the assets debt free, plus an amount that can be invested to receive additional income.
It is a very individual thing but I believe the minimum life insurance should at least cover all debts.
Robert Bou-Hamdan
Mortgage AdviserLife insurance is a waste of money!!!
Exception – if you have children thats not true, you want your kids to have the best future possible. If I have children I will ensure any life insurance payout goes into a trust fund for them only.
If you don’t have children I see absolutely no point to life insurance. Your partner might want a big fat pay cheque, but its the 21st century, anyone can move on and look after themselves.
Tom,
It is lovely to see you so concerned with your family in the event of your death.
Of coure there is no benefit in having life insurance if you have no family at all. The government gets it.
Robert Bou-Hamdan
Mortgage Adviser
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