When taking out finance, whether it be a home loan or commercial loan, insurance can sometimes be an afterthought. However, given the potential ramifications of not being adequately insured, insurance is an important consideration and should form part of the finance conversation.
It is important to both insure and regularly review the insurance cover on your vehicles and properties (in fact insurance is a condition precedent to most loans). However, it is equally as important to insure arguably the most valuable thing you have – YOURSELF!
Things to think about when taking out finance:
- Does your current Life / Total & Permanent Disablement (TPD) Insurance adequately cover your total loan limits?
- Are your loan repayments covered in the event you are not earning your regular income?
- If you are a business owner, are you covered if you are out of action for an extended period of time’
I often feel that the below types of insurances are overlooked and perhaps perceived as unnecessary:
- Key Person
- Business Interruption
- Income Protection
- Mortgage Protection
At times, the consequences of not having the above cover can be more costly than the premiums (especially if you are self-employed). So it is always a good idea to at least have the conversation.
Don’t forget, you should always seek expert advice from a qualified (and competent) financial adviser and/or insurance broker when considering the above, as well as the many various other types of insurances that may be applicable to your situation.
This is important so that you can fully understand what you should be covered for, to what extent and what are the best insurance instruments to protect you, relative to your specific circumstances.
As always, please feel free to get in touch if you would like to explore the above in further detail and would like an introduction to someone that can help you with the above. We are always here to help!
Disclaimer: The information provided herein is for general information purposes only and does not constitute specific advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific advice should be obtained from a suitably qualified professional before adopting any investment/financial strategy.