Two Mortgage Protection Policies

ccraigcalvert

Quick and easy question (I hope) - is it possible to take out two different mortgage protection policies and get paid out on both due to sickness?

Cheers.

ms29zippy

simple answer...no

It would most likely amount to you committing fraud

dunstonh

Technically, you can have as many as you want. However, you cannot exceed the overall income limits and you would find that they will not pay out the amount you expect if you do.

PHI is far more effective for sickness cover than a PPI policy. Any reason you are looking at PPI?

herbiesjp

Mortgage payment protection tends to be cover for a short term period, and limited to cover mortgage payment (plus additional extra if provider allows)

Income protection (or PHI) can cover up until retirement, and cannot be cancelled by the provider no matter how many claims you make.

A lot of clients take out both, with the PPI lasting for 1 year, which means thelonger term cover can start after 1 year. By having the PHI payout delayed by this 1 year, measn that the premiums are cheaper on the PHI policy.