Wagga Wagga - Restaurants, Hotels, Pubs, Business Directory, Visitors, Shops, What\'s on, Events, Conference

More than Just Accountants!

Mortgage Protection Insurance is not necessarily the best cover for home loan borrowers, according to Chris King from local financial planning firm, HMA Twomey Patterson.

He strongly believes that everyone should be considering Income Protection Insurance as an option for more comprehensive cover.

Chris King advises “If you are applying for a home loan and being asked by the bank to take out Mortgage Protection Insurance, consider your options before signing on the dotted line.  You should definitely consider Income Protection Insurance as an alternative."

Income Protection Insurance provides you with a monthly benefit in the event that you are unable to work due to sickness or accident. 

The monthly benefit can provide up to 75% of your regular salary and can be used to help maintain your lifestyle while you're away from work.

Chris King warns, "Mortgage Insurance only covers your mortgage repayments, not expenses like food, electricity, water, or medical bills - all of which are essential. 

Your Mortgage Insurance provider pays the benefit directly to the institution from which you received your loan - it doesn't cover your debt."

“Most forms of Mortgage Insurance really protect the lender and not the borrower," warns Chris King.  “Income Protection is much more comprehensive and protects you personally.”

Chris King states, “You should also have a look at how long your insurer will pay you for - or the ‘benefit period’. 

It is quite common for Mortgage Protection to only provide benefit payments for a maximum of one or two years, whereas Income Protection can provide payments up to the age of 65.”

According to Chris King, “Generally the only area where Mortgage Insurance may provide cover and Income Protection won't, is involuntary unemployment. 

Some Mortgage Insurance policies will provide a benefit up to six months if you become unemployed during the period of cover for more than 30 days.”

“People should be aware that there are alternatives to Mortgage Protection insurance,” says Chris King, " and in my professional opinion, for many people Income Protection Insurance is an alternative to be considered".

Chris King is an Authorised Representative of Count Financial Limited an Australian Financial Services Licence Holder (No. 227232) and Australia's largest independently-owned network of financial planning accountants and advisers.

The advice provided is general advice only as, in preparing it, we did not take into account your investment objectives, financial situation or particular needs. 

Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, objectives and financial circumstances.

For further information:

Chris King ADFS (FP). JP

Authorised Representative
Count Financial Limited

Financial Adviser
HMA Twomey Patterson

WWW.HMATP.COM.AU

Tel:  (02) 6925 8377
Fax: (02) 6925 8550