Multiple Critical Illness cover is illegal?

softyengin

Was thinking about upgrading my Life Insurance to include Critical illness cover.

Now i have more one policy to pay off the mortgage over the mortgage term and another to cover my salary until my children have flown the nest.

Apparently I found out today I can only legally claim from one policy, even though im paying for two.

Is this right, Would this be a waste of money.

To complicate matters my curretn work provide CI cover too but obviously only if I work for them!

Any thoughts?

Cheers

dunstonh

Apparently I found out today I can only legally claim from one policy, even though im paying for two.

Whoever told you that is talking rubbish. You can have as many policies as you like. There is the potential for a maximum sum "combined" assured with certain re-assurers though. Typically heading to the million pound plus mark.

kingstreet

softyengin wrote: »

Apparently I found out today I can only legally claim from one policy, even though im paying for two

As dunston said, that's garbage.

You can have CI for debt repayment, like mortgage cover. You can also have CI for family protection, pay for adaptations to your home in the event of illness, convalescence...

As he said, you may come up against a sum assured limit, but that would be very high and you could use an infinite number of policies to reach it, if you wanted.

Now, income protection (PHI) cover would be a different issue. With this type of cover, you're limited to a percentage of your income and exceeding this with multiple policies would see them pay out a proportionate amount, upto that income limit.