Which offers the best value for money?

Hi All

I thought I would put forward another question about insurance.

Which offers the best value for money?

1. Your home is worth $500,000 and your home insurance premium is $800 pa.

2. Your car is worth $50,000 and your car insurance premium is $1,000 pa.

3. Your earning power is worth $4,000,000 and your income protection premium is $750 pa.

The above estimates will vary depending on the situation.

What do you think - 1, 2 or 3?

Cheers

3
Unless your not working...

Come on everyone - 1, 2 or 3?

Cheers

Number 1. When everything fails you always have home to go back.

Hi dudek

What if there is a mortgage on the home and you can't meet the repayments - could the bank take the home?

Cheers

Andrew,

What was the question again?
Can the bank take your home or what is the best value?
Hard to win with the bank but you can always try to negotiate your way out of trouble.
If you have problem with 500K loan then point 2 and 3 does not apply.
$800 p/y does look a good value to protect your family nest and all emotional attachment coming with it.

Hi dudek

But if you are eligible to claim on an income protection policy, then 3 becomes very important!

Cheers

Andrew,

If you ask me if $750 is a good value to protect 4mil income I’d say YES!
But if you ask me to choose what is the best value compare to other scenarios I don’t think you can put value on people’s emotions.

Three scenarios you presented don’t stick and one will never have to make such a decision.

Hi dudek

The scenarios are real. When you own a home, you decide if you want to insure it - similarly for your car and your income.

Doing nothing or not knowing, is still making a decision!

Unfortuntely, 3 rarely comes up first on the list.

Cheers

Well...I vote for number 5!