Income Protection

sintra_2

Hi,

Does anybody know if it is possible to have more than one income protection insurance in the same name ?

Also can anybody suggest any good providers ?

Regards

Darren

dunstonh

Does anybody know if it is possible to have more than one income protection insurance in the same name ?

Yes. Providing you dont over insure. Well you can over insure but you wont get any payout above the maximum.

Also can anybody suggest any good providers ?

Depends on whether you are after budget payment protection plans or comprehensive permanent health insurance plans or something in between.

"best" will depend on what you define as being important. Also, it varies with term, employment, age, deferment period, sex, smoker status, indexation/level and type of cover.

sintra_2

Thanks for your reply

So if i take out insurance for £1000 with one provider and then the same again with another, but this in toal amounts to more than my net montly earnings, this is allowed ??? Or have i understood you ??

With regards to best i was refering to ones just for income protection and which ones pay out the most % of your income

Darren

lisyloo

Does anybody know if it is possible to have more than one income protection insurance in the same name ?

In general I wouldhave thought that one policy is most cost effective, but you can have several if you wish.
For sickness there is a legal maximum payout of 75% of income.
This is because there needs to be some incentive to go back to work, otherwise some people will not admit to recovery and it's possible to fake a continuation of an illness.

Some insurances suffer more fraud than others.
For example sickness insurance suffers more fraud than life insurance as it's easier to fake being ill than being dead.

Given that insurance companies have overhead like admin, then I can't see how it would be cost effective to have several policies unless you want to top up an employers policy or have reasons for wanting to keep an existing policy.

dunstonh

There is nothing to gain from having multiple policies as you are creating multiple claims and of course not all policies are the same.

With regards to best i was refering to ones just for income protection and which ones pay out the most % of your income

The limit is set by the Govt. You can over insure yourself but any claim will be capped back to that limit and you wont get your premiums back for the overpayment. Some say 75% gross whilst others use 66% net which more or less works out the same. Some allow a few percent less to be on the safe side.

payment protections and waiver of premiums on loans and other things are taken into account as well when going towards the limits.

sintra_2

Just to clarify what i am asking is as follows:

- My gross monthly income is £2500

- The most % i have found an insurance company provide is 65% of your gross montly income.

- 65% of my gross income is £1625

- what i am wanting to know is can i take out two seperate policies (with different companies) that pay out for example £1000 per month each, giving me a total of per month of £2000 and therefore higher that the £1625 i would allowed with just one policy ?

Darren

dunstonh

- what i am wanting to know is can i take out two seperate policies (with different companies) that pay out for example £1000 per month each, giving me a total of per month of £2000 and therefore higher that the £1625 i would allowed with just one policy ?

You can do that as there is no checking on application. However, if you have a claim you will be capped to 75% gross making what you want to do pointless.

Are you looking at payment protection income protection plans or PHI income protection plans?

sintra_2

i am just looking for 'payment protection income protection plans'

dunstonh

sintra wrote: »

i am just looking for 'payment protection income protection plans'

pick the cheapest and hope you dont get ill then.

payment protection plans rejected 86% of claims in 2006.

sintra_2

[quote=payment_protection_plans_rejected_86%_of_complaints_in_2006.[/quote] so do you think it is worthless getting then

sintra_2

Bump............