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Two unemployment policies for one person?
Milky_Mocha
Posts: 1,066 Forumite
I posted this on the redundancy forum and realised I'm more likely to get some more 'expert' opinions on this forum so pls read ahead...
Hello
At the moment my husband has an unemployment policy in place which costs £49 per month. It only pays out a monthly benefit of £1,500 if he makes a claim. Is it generally permissible to take out another to gain a monthly benefit of £3,000?
On one insurance website it states under eligibility:
"I am aware that the sum insured under this and similar insurance policies must not exceed 50% of my monthly earned income before tax and if I exceed this limit my benefit will be reduced".
Its the similar insurance policies bit that worries me.
I have thought about self insuring but that would be inadequate and is best kept as additional saving.
Hello
At the moment my husband has an unemployment policy in place which costs £49 per month. It only pays out a monthly benefit of £1,500 if he makes a claim. Is it generally permissible to take out another to gain a monthly benefit of £3,000?
On one insurance website it states under eligibility:
"I am aware that the sum insured under this and similar insurance policies must not exceed 50% of my monthly earned income before tax and if I exceed this limit my benefit will be reduced".
Its the similar insurance policies bit that worries me.
I have thought about self insuring but that would be inadequate and is best kept as additional saving.
The reason people don't move right down inside the carriage is that there's nothing to hold onto when you're in the middle.
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Comments
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Its the similar insurance policies bit that worries me.
It should do as its an important part. You can only insure upto a certain amount of your income. Its actually higher than 50% and you more typically see 66% or even 70% quoted (depending on tax and how benefits are paid). However, most plans will take into account employer benefits and other payment protections you have in force.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It should do as its an important part. You can only insure upto a certain amount of your income. Its actually higher than 50% and you more typically see 66% or even 70% quoted (depending on tax and how benefits are paid). However, most plans will take into account employer benefits and other payment protections you have in force.
What I am wondering is, if I took the policies out with two separate companies would one refuse to pay out if they find out that the other has, even though I'd be paying two premiums?The reason people don't move right down inside the carriage is that there's nothing to hold onto when you're in the middle.0
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