Hello everyone,
We are a bit confused on weather we really should be going for MPI .My understanding is that it is an option and not a requirement from the bank’s end, would I be right in saying this?
Our bank is pushing this product on the one hand and on the other I believe our super already covers scenarios like Death, Income protection, TPD.
We own 3 Investment properties which fetch good rental returns …and essentially pay for themselves. If the above scenarios are covered through the Super wouldn’t we be over insuring ourselves by paying a premium for MPI?How do investors owning multiple investments normally cover these scenarios?
Appreciate any help or advice.
Regards,
ABHi AB,
Do you want to expand on “MPI” for those of us who don’t know what you are referring to? Sounds like some kind of Insurance, but…. is it a “Multiple Property Insurance?”Benny
Hi Benny,
Apologies.
I was referring to to Mortgage protection insurance.
Just found this link that I was going through after posting the question
http://www.bankrate.com/finance/insurance/do-you-need-mortgage-protection-insurance-1.aspxI would be very interested to know what people here think of the insurance.
Regards,
AmeetHi AB,
That appears to be a US-based website. I am sure such a product is available here too – akin to a Life Policy that pays off the house if you die, yeah? Not to be confused with LMI (Lenders Mortgage Insurance) where you pay a premium to protect your lender.If the above scenarios are covered through the Super wouldn’t we be over insuring ourselves by paying a premium for MPI?
As you say, if you believe you are suitably covered by your Super for Death benefits, then this is just one more Insurance that may not be necessary. This would be a very individual thing – some like to mitigate all risks at any cost, while others tend to be more casual, and would not spend on something that likely won’t happen for a while, and, when it does, there will likely be heaps more Equity sitting in the properties to leave behind a substantial nest-egg.
I’d be interested in reading what others say too,
Benny
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